Real estate contracts are legally binding documents that can make or break a property deal. Whether you’re buying or selling, understanding how real estate contracts Kelowna work is essential. Misconceptions can lead to lost deposits, delayed closings, or worse—lawsuits.
Debunking Common Myths About Real Estate Contracts
Myth #1: A verbal agreement is legally binding in real estate.
Fact: In British Columbia, real estate contracts must be in writing to be enforceable. Verbal promises or handshake deals carry no legal weight.
Myth #2: Once I sign a contract, I’m locked in no matter what.
Fact: Most contracts include conditions that protect both parties. Common contingencies include:
- Financing approval
- Satisfactory home inspections
- Sale of an existing property
These give buyers or sellers the legal right to walk away if conditions aren’t met.
Myth #3: The standard real estate contract protects me completely.
Fact: Standard forms offer basic protections. If your deal has unique circumstances, custom clauses may be needed to safeguard your interests.
Myth #4: I don’t need a lawyer—my real estate agent handles everything.
Fact: Realtors assist with the transaction, but they aren’t legal professionals. For true protection, especially on high-value or complex deals, you need real estate legal advice Kelowna from a qualified lawyer.
Myth #5: Closing costs are included in the purchase price.
Fact: Buyers and sellers must budget separately for closing costs. These can include:
- Legal fees
- Property transfer tax
- Title insurance
- Adjustments for utilities or property taxes
Learn more about Property Purchase Agreements
Practical Tips for Real Estate Contracts
- Always read and understand all conditions before signing
- Clarify deposit terms—know when it’s refundable or forfeited
- Don’t waive contingencies unless you’ve had legal advice
- Confirm who pays what at closing—fees are often split
Get Real Estate Legal Advice in Kelowna
Common FAQs
Can a seller accept a higher offer after signing a contract?
No. Once both parties sign, the contract is legally binding unless terminated under a valid contingency.
What happens if a buyer backs out of a contract?
They may forfeit their deposit or be subject to legal action, depending on the terms.
Why Choose Bryshun Mace?
- Legal support for buyers, sellers, and real estate investors
- Protection against vague or risky contract terms
- Guidance on deposits, closing costs, and disputes
See Our Real Estate Law Services
Don’t Risk Your Deal—Get Legal Review
Buying or selling a property? Contact Bryshun Mace for real estate contract review and legal advice that protects your bottom line.
Disclaimer:
This article is for informational purposes only and does not constitute legal advice. For personalized legal guidance, consult a qualified lawyer.
