BIC TIP #1259: Survival of the Fittest

Survival of the fittest takes on a whole new meaning in real estate. Stephen Long is talking about survivorship, meaning agreements between a buyer and seller that are supposed to survive past closing. If you need one, our standard forms are not going to get you there.

Closing Is the Finish Line for the Forms

In a typical North Carolina transaction, closing is the fruition of the deal. According to Stephen, closing constitutes acceptance, and at that point the agency agreements, contracts, and addenda have done their job.

In other words, once the deal closes, the standard paperwork has run its course. There is nothing in our standard forms designed to supersede that or to be enforceable beyond closing.

When the Parties Need Something More

Sometimes the buyer and seller agree to something that is meant to happen after the deed is recorded. Maybe the seller promises to complete a project after closing, or the parties agree to some arrangement that continues once the buyer owns the home.

If that promise is only reflected in the standard forms, or worse, only in a handshake, it may not hold up when it matters. Do not assume that a term written on a standard form will carry forward after closing.

Call the Attorney

Stephen’s advice is clear: if you need an agreement that survives closing, have it drafted by a real estate attorney. The attorney can create a document designed to remain enforceable after the transaction is complete.

As brokers, we should not be drafting that kind of language ourselves. Recognize the need, flag it early, and refer the parties to an attorney so the agreement is done right. Your broker-in-charge can help you decide when it is time to make that call.

The Practical Takeaway

Standard forms end their job at closing. If the buyer and seller need an agreement that survives past closing, get a real estate attorney to draft it. Spot the issue early, make the referral, and make sure the parties’ post-closing promises are actually built to last.

This BIC Tip is general real estate education for licensees and consumers, not legal, tax, or financial advice. Rules and forms change, so verify current NCREC rules, MLS rules, and standard forms, and consult a North Carolina attorney or qualified professional about your specific situation. See Disclaimers & Disclosures.