Real Estate Agent trick 5 - Signing the Waiver Early
It is will understood that whenever you write up a contract to purchase a house,
you need to put in at least two conditions - conditional upon inspection and
conditional upon financing. These two conditions are so well known that even a
first time home buyer is aware of this.
Thus, experience con-artist real estate agents will rarely try to persuade first
time home buyers otherwise. However, there is a second trick that experience
con-artist real estate agents can attempt to pull and that is, is to get these
first time home buyer to sign the waiver.
A waiver is a very simplistic form that waives the conditions of home inspection
and financing away causing the contract to be locked and bound!
So how does an immoral Real Estate Agent pull of such a conniving trick? First,
the unsuspecting home buyer must not be aware of the existence of a waiver. Most
home buyers are aware of the conditions of the contract. Thus this trick
generally works best on first time home buyers.
Second, the immoral real estate agent must confuse the unsuspecting buyer
enough to sign things blindly.
So without further ado, here is how the trick is pulled off.
1. The moment the buyer considers purchasing a property, a several contracts are
presented to the buyer that needs to be signed.
2. The sneaky real estate agent will then attempt to explain these contract in
the most confusing and fastest way possible. This purpose is to rush the client
making the client feel guily that he is slowing the process and down.
Also, it is to confuse the client so that he won't ask any questions.
3. Once when the buyer is confused enough and signs everything the real estate
agent ask wihtout question, the sneaky agent will then throw in the waivers.
Knowing the level of understanding the home buyer has and the ability to confirm
to sign anything, the agent has successfully and unethically caused the buyer to
sign the waivers. Thus, voiding the conditions of the contract and forcing the
contract to be bound.
Now, this trick is enough for the agent to complete the sale. But real estate
don't want to get in trouble. Because it is technically illegal what the agent
has done. So to further ensure this deal flows smoothly, the agent will then
want the buyer to agree to sending these waiver forms to the seller.
How is this done? Here's how:
1. The contract
generally expires in a week. So the Buyer's Agent only has a week to send the waivers to the sellers.
2. The Buyer's Agent first calls the buyer's lenders and other parties involved early to see how the process to checking the contract conditions is going. By calling early, the lenders will not be able to claim the property to be purchased is no good. In fact, more often than not, the lenders will actually tell the agent there will always be a way to get the money for financing. The lenders say that really just to comfort the Agent.
3. By getting the lender's confirmation, the agent can now inform the buyer, the
financing is approved. The agent then ask if the buyer is would agree to waive
the conditions now because the agent would be too busy later on claiming he is
on an educational course.
4. The homebuyer trust the agent and sees that the conditions will most likely go through. So to help the Real Estate Agent, the homebuyer agrees.
Now the deal is done. The agent has successfully tricked the buyer into signing
the waiver and sending it to the seller and the buyer may not even be aware of
it! The contract is now bound. The buyer must now buy the house. Most lilkely,
the buyer may not even know the house was overpriced.
This happens. It happens in Ontario
and it happens all over Canada. I am releasing this information because Canadians must know. Quite frankly, orea.ca may not even be aware of it or is not doing anything about it.
Dec. 2, 2011
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