Should the agent be listed in the contracts to receive notices?
10/16/2015 | Author: Editorial Staff
Should the agents’ information be inserted in Paragraph 21 of the TREC contracts as the points of contact to receive notices?
The parties to the contract should consider several factors before deciding what contact information should be inserted in Paragraph 21.
Time is of the essence in almost all of the notice provisions in TREC contracts. This means they require time-sensitive action. Having an agent as the point of contact to receive notices for his or her client could create delays that may result in the party losing a time-sensitive option or right provided in the contract, such as the Paragraph 23 termination option or the Third Party Financing Addendum for Credit Approval.
In addition, the word “notices” in Paragraph 21 has contractual meaning. Giving notice to a party can affect the party’s rights and obligations in several parts of the contract, so care should be taken to provide notices in ways that don’t cause needless delay.
Some agents are reluctant to put buyers’ and sellers’ contact info in Paragraph 21 because they think direct contact with the other party is forbidden. However, as long as you’re using the contact information to provide notice to the other party, you’re not crossing the boundary of soliciting another agent’s client.
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