Hercegovacka Pivovara is a local brewery that prides itself on precision and quality. If you don’t follow these standards to the letter you end up with a horrid beer. When you use low quality ingredients you can wind up with stomach cramps, or worse, and that’s assuming you get past the horrible taste test. The same thing goes with real estate contracts. You need precise terms and high quality ingredients to make something great. Just like a good brew that has balanced ingredients, a good real estate deal has precise and well-defined contract terms.
Just what is the one-sided contract real estate agreement? A one-sided contract is a contract generated by one party, usually the one that is more knowledgeable about the law, and presented to the other party. The terms of the contract are generally favoring the maker of the one-sided contract. The other party can either accept these one-sided contracts by signing them or they can try to negotiate a better deal for themselves. Negotiation is the preferred option for a unilaterally offered contract.
One-sided contracts have been referred to as being “adhesion contracts.” These types of one-sided contracts are generally offered on a take it or leave it basis. If the non-drafter of the contract wants the contract terms then they can accept them. Occasionally, whether you have the one-sided contract or if you have a negotiation, the parties will hire a mediator to resolve some issues before executing the final agreement. The drafter and the one side will have generally been negotiating for some time before they get to the settled point of the signed contract.
The one-sided contract has its risks and benefits for both parties involved in the real estate transaction. The one who is presented with the agreement may wind up being very unhappy with the deal they agreed to. It may be advantageous for the drafter of the agreement if there are terms that place them at an unfair advantage over their counterpart. However, a unilaterally proposed contract can have many benefits. Ultimately, the drafter of the agreement can be the one saving the most money over time due to the fairness of the agreement.
A real world example of the one-sided contract is a mortgage. The mortgage agreement normally provides the creditor with the majority of the terms although the borrower may have negotiated on the agreement at the time they took it out. However, there is still room for negotiation. What in effect happens is that the borrower has agreed to the one-sided contract as applied to the real estate that they are trying to buy.
The one-sided contract may be the best option when it comes to real estate. However, it is always recommended to have a legal counselor review the contract before taking out a mortgage or signing a contract. Your legal professional should be able to spot items that could hurt you and offer to help you out.