BIC TIP #1173: All Good Things Come to an End
Broker on a Boat continues, and this time Stephen Long is talking about endings. Once an Offer to Purchase and Contract comes to fruition, it has to wrap up somehow. It closes, it expires under its own terms, or there is a termination. What it does not do is quietly disappear because everyone stopped returning calls. Contracts do not just go away.
The Happy Ending: Closing
The goal, of course, is a closing. Buyer gets the keys, seller gets the proceeds, brokers get paid, and everybody goes home happy. That is the ending we are all working toward from the moment the contract is signed.
But not every deal makes it to the table, and that is where brokers sometimes drop the ball.
The Other Ending: Termination
If the deal is not going to close, it needs a proper termination. Depending on the situation, the buyer may be the one to terminate, or the seller may have grounds to terminate. Stephen notes that you may need to look at the facts and see what the best and most appropriate avenue is.
That decision can have real consequences for the parties, especially around money that has changed hands. When the path is not clear, bring in your broker-in-charge, and encourage the parties to consult a real estate attorney before they act.
Why Zombie Contracts Are Dangerous
A contract that is dead in practice but alive on paper is a problem for everyone. The seller cannot cleanly move on to another buyer. The buyer may be in limbo about whether they are still obligated. And the brokers are stuck with a file that has no clear ending.
Leaving a contract hanging invites disputes down the road. It is much better to bring it to some sort of conclusion, in writing, so both buyer and seller know exactly where they stand.
The Practical Takeaway
Every contract needs a final chapter. Either get it to the closing table or get it properly terminated so the buyer and seller can move on. Do not let deals drift. Follow up, figure out the right path, document it, and close the file one way or the other.
