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The Dangers of “TBD A/I”

Don’t Let Uncertainty Sink Your Deal! The Dangers of “TBD A/I”

Writing “TBD attorney review” in a real estate contract can potentially introduce several risks and uncertainties for both the buyer and the seller. Here are some potential dangers:

  1. Ambiguity: By leaving the attorney review to be determined later, the contract lacks clarity on crucial terms and conditions. This ambiguity can lead to misunderstandings and disputes between the parties. This is especially the case in negotiation of tax prorations.
  2. Legal Exposure: Without specific terms outlined in the contract, either party may find themselves legally exposed. This leaves room for interpretation and potential litigation if disagreements arise.
  3. Delay and Uncertainty: Failure to specify the attorney review process upfront can result in delays in the transaction process. This uncertainty can be frustrating for both parties and may even lead to the deal falling through.
  4. Risk of Miscommunication: Allowing a key provision of the contract to be determined later can lead to miscommunication or differing expectations between the buyer, seller, and their respective attorneys.
  5. Potential for Exploitation: One party may try to exploit the lack of defined terms during the attorney review process to negotiate more favorable terms, potentially at the expense of the other party.
  6. Professionalism Concerns: It may raise concerns about the professionalism and competence of the real estate agent who drafted the contract. Clear, detailed contracts are essential for a smooth and transparent transaction process.

To mitigate these risks, it’s advisable for real estate agents to ensure that all essential terms and conditions, including the attorney review process, are clearly specified in the contract before it is signed by both parties. This helps to avoid misunderstandings, disputes, and potential legal issues down the line.

 

Disclaimer

Niko Law LLC is an Illinois law firm. As the firm practices law in the State of Illinois, only, this website and/or e-newsletter focuses upon that jurisdiction, only. Please keep in mind Niko Law LLC does not guarantee results and that law can vary dramatically from state to state, county to county, and it is not reasonable to assume that law in other jurisdictions will be the same as, or even similar to, Illinois law.

This e-newsletter should not be construed as legal advice, nor used in lieu of a lawyer.

For questions regarding your specific situation, please contact Niko Law LLC at 708-966-9388.

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