10 of the Biggest Mistakes Buyers and Sellers Make When Relying Upon 'Standard' Forms to Buy and Sell Property
| Issue | Buyer's Tip | Seller's Tip |
| 1. Identity of Buyer | Not considering selection of the appropriate entity. | If the buyer is a new entity, not getting a financially sound individual to sign as well. |
| 2. Identity of Seller | Not checking title to make sure you're dealing with right party | If the seller is anything other than individuals, not making sure you have correctly identified the seller and not going through the proper steps to get authorization to sell |
| 3. Description of property | Not identifying all real property, personal property and improvements with as much specificity as possible. If commercial, include all property addresses, square footage of land, square footage of all improvements, and all appurtenances. If residential, make sure to specifically identify any personal property item that you are not sure would otherwise be included. | Accuracy is in your best interest as well. But be sure to include "AS IS, WHERE IS" disclaimer and agreement by Buyer.Make sure to exclude in writing anything you don't want to sell. |
| 4. Structure | Not considering asking the seller to carry back paper at some point in the negotiation process. Could be a win-win. | Not considering offering to carry back paper at some point in the negotiation process. Could be a win-win. Especially for older sellers looking for annuity income. |
| 5. Seller Financing (assume it's a 2nd) |
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| 6. Financing | Not protecting yourself if rates go up too high during loan contingency |
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| 7. Deposits |
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| 8. Contingencies |
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| 9. Representations and warranties | Not getting enough | Giving too many, too broad, and not "AS IS, WHERE IS" |
| 10. Liquidated damages | Not thinking before you decide (In declining market, you may want; in rising market you probably do not). | Not thinking before you decide (In declining market, you may not want; in rising market you probably do). |
| 11. (Bonus!) Arbitration provision | Not thinking before you decide. Usually, buyers don't want. | Not thinking before you decide. Usually, sellers want, to avoid tying up property forever. |
