October 8th, 2011 at 12:00 am
1. First, I have received multiple calls about contracts where, when the parties agreed to change the purchase price on a buyer’s offer, a “new” page 1 was prepared rather than a counter offer. Please, NEVER do this. Once a contract document is signed, it should not be changed except by a counter offer or addendum. You should never allow your client to make changes to a document “above the signatures.” This practice allows for multiple problems. First, you have more than one first page of the Purchase Agreement floating around, thereby allowing for a dispute as to which is the effective one. That can’t happen with a properly numbered counter offer. Also, making changes after the document is signed could lead to claims by one of the parties that they did not authorize the change. Again, these potential problems are easily avoided with a counter offer. So, never change a document after it is signed.
2. Next, on a couple of instances, I have been copied on an e-mail sent by our agent to a client regarding a dispute in the subject transaction. The problem with this process is that I am only involved AFTER the e-mail is sent and therefore cannot give advice about what the e-mail should say. You need to remember that when a conflict exists in your escrow, everything you do, including what you say in your e-mail, can have legal consequences for both you and your client. That is why we are available to help you at all times and why we ask you to call us at the first hint of trouble. Call us first, and we will tell you what the e-mail should say. That way, both you and your client will be protected. Thanks and, as always, let us know if you have any questions.
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