Contracts - understand what you are signing!

I had a lady referred to me. In a conversation I found out that she had placed an offer on a property, with a realtor she met online. Due to multiple offers, she did not get this house. This prompted my question to find out if the client is obliged to said realtor. I was assured by her that she did not sign anything with the other realtor except for the offer. When I saw her the following day, and asked her to show me what she signed, just to be sure that she isn't getting herself in trouble, by engaging multiple agents. There it was. She did in fact sign a contract for a large geographical area for a period of a couple of months, with the realtor she met online, when she wanted to view the listing of interest and send the offer.

She was upset and in disbelief that she signed this. She was telling me that she didn't know what she was signing however, it was still her signatures on those contracts.

Here are a few of my concerns;

1) Make sure that when signing any paperwork you understand what you are signing. Ask questions. Know what it means to put your signature on the paper. It doesn't matter if it is real estate related or any other contract you may be signing eg. Water Heater, Furnace, A/C and/or Water filtration systems.... whatever comes with fine print, understand it before signing it.

2) Nobody is making you do this. Ask questions to ensure you understand.

3) Any reputable realtor would find a way to explain to the client what any of the initials and or signatures mean to them. It is our job. 

This client's explanation for signing all the documents without understanding them was that the offers were being accepted by 8 pm, the paperwork got to her email just before 8 pm and she just was clicking signatures on the phone, to quickly get that offer in on time. 

Yes - we were all there. In fact the speed of things in which we are forced to make such important decisions about buying houses is unreasonable at times.... but when making the decision to jump into the situation, we can still be better prepared for the actual offer time.

That is why I encourage everyone to find a realtor that they are comfortable with and can trust. You can get a lot of the paperwork out of the way, before doing the offer and before things get too hectic. You can find time to go over the paperwork and ask questions if you prepare for it. If you manage yourself better.

There are tools to help you understand the fine print in the real estate world. There are Plain Language forms that can be shared with you, so you can read them yourself and ask questions. You can take any copy of the paperwork to your solicitor, and have them be able to explain the document to you, and of course, make sure to work with a realtor who can explain the forms to you prior to signing them.

Long story short - My client ended up getting in touch with the realtor who she signed all the forms with and they were kind enough to terminate the paperwork, which was a relief, but you may not always get so lucky. This realtor understood and acknowledged that she did not know what she signed, and did the right thing by the client.

As realtors we have obligations to sign paperwork with clients, to establish relationships. To make sure everyone understands their roles and obligations and the process. We also have an obligation to explain what you are signing, prior to your signatures on paper.

In conclusion, I encourage you to please make sure that you educate yourself. Work with people you trust who can guide you through this very exciting and stressful time of your life.   

I am proud to be empowering homeowners and would be happy to assist you futher.