Writing Outside the Box - Finding Clear Sales Agreement Language

May 20, 2010

Source: Risk Management Committee

Anytime you start creating new Sales Agreement language-when the boilerplate language just won't work-you are taking a risk. "Written in" contract language usually takes precedence over the boilerplate and courts normally hold those that create that language responsible for the bad results of unclear agreement language. So, be careful!

And don't forget that there is a good supply of clearly written, tried-and-true contract language available to you at the click of a mouse. Just go to www.gkar.com, log in (GKAR staff can help you with forgotten or never used user name and password), click on "Download Forms", then "Addendums" and then "Common Clauses", where you will find GKAR board-approved language for such situations as:

  • Seller will not sell until they find a house that meets their needs
  • Buyer wants to enter The Property before closing to perform lender required repairs or other work Buyer wants to do, but not to occupy
  • Buyer and Seller want to enter into an agreement on un-platted land that would create a new division under the Land Division Act
  • Seller is selling property that does not abut a public road
  • Buyer wants to condition the sale on the approval of another party (out-of-town spouse, brother-in-law, etc.
  • Buyer (or Seller) wants to condition the sale on Buyer's (or Seller's) attorney's approval
  • Buyer wants to ask for repairs to The Property based on Buyer's inspections
  • Buyer and Seller want to terminate an Agreement, but the earnest money is still in dispute
  • Buyer wishes to terminate or amend an inspection request after Seller has not agreed to an initial request

The above is just a partial list. Check out the complete list on the GKAR website. New clauses are often added. Also, keep in mind that the Common Clauses, while a very good starting point, may not fit your particular situation perfectly. Before you just plug in language, make sure it speaks to the specifics of your transaction!