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New document protects real estate buyers, sellers


 
29.10.2008

New document protects real estate buyers, sellers


 

Louisiana has implemented a uniform purchase agreement to ensure that neither the buyer nor seller of residential real estate is caught unaware by the fine print the other party inscribes in the document.

The Legislature mandated the use of a standard purchase agreement during its 2006 regular session, and the Louisiana Real Estate Commission spent another year drafting the document and circulating it for comment. It finally went into use in January this year.

Frank Trapani, a regional manager with Latter & Blum and a member of the real estate commission, said having a uniform purchase agreement saves agents the time and headache of scouring each page for editing or insertions made by the other party.

"Before, you had to be skeptical of every piece of paperwork you got," he said.

"A line in one agreement might say the seller is responsible for paying for termite treatment, and another agreement might say the seller is responsible for a termite certificate. The difference is about $600. If you did not read the agreement word for word, you could put your client on the spot," he said.

Trapani said the boilerplate language is designed to protect buyers and sellers equally. Neither can edit the seven-page purchase agreement, but they can attach an addendum if the document needs to be altered to suit the offer at hand.

Rep. Damon Baldone, D-Houma, who sponsored the legislation, said the uniform purchase agreement should protect consumers in residential real estate transactions. The document applies to all residential property sales involving no more than four dwelling units.

"When all agents and buyers and sellers use the same form, there is less room for lawsuits and controversy than if everyone were using different forms," Baldone said. "It removes a lot of possible areas for litigation and makes things run much more smoothly."