Adobe says almost 70% of people don't read their contract before signing...

I think many have been at the point of receiving a document and just trusting that the person that provided the document has your best interest at heart. If the document is composed of multiple pages or verbose or we feel we may be running out of time, we may just sign it before reading in full. This is a problem.

If you are buying or selling a property in North Carolina and using the services of realtor, it is most likely that your contract will be the Form 2-T, Offer to Purchase and Contract. I write a lot about the 2-T on this blog as well as identify some of the hot topics that can lead to confusion (or missed opportunities).  The 2-T is currently as of the date of this blog 17 pages long and can be overwhelming if the first time you have seen it is when your realtor sends it to you by email for signing.

The Adobe and Advanis Survey

Adobe Acrobat recently partnered with research firm Advanis to determine how many respondents actually read their contract before signing. Adobe posted the survey results on their blog and truth be told, I thought the percentage of respondents not reading contracts would have been higher.

Based on the survey results, the top reason why we don’t read contracts is that they are too long and complicated. I have proposed to many clients that it is an investment in yourself to spend less than an hour reading through a sample 2-T before you set out to look for homes to purchase or accept an offer.

So what do you do?

The appropriate response to a contract being lengthy or complicated is to read the contract and put together a list of questions to ask your realtor or your real estate attorney. The survey also showed that 69% of respondents “admitted to signing a contract without knowing all the details”.

The North Carolina Real Estate Commission (NCREC) has stated that one of their top ten complaints received is regarding contract issues. It is my belief that many buyers do not fully understand how not fully understanding their rights and obligations of their contract can lead to missteps. A quick look at the NC Realtors Legal Q&As section shows a plethora contract related questions that agents ask the NCREC attorneys.

It's not just the parties to the contract…

I would like to highlight that it is my experience that some real estate professionals may not have a basic understanding of the contracts that they place in front of their buyer/seller clients. The NCREC expects that each licensed real estate broker has a basic understanding of Form No. 2-T. However, I have been in the presence of realtors who did not demonstrate that basic understanding.

What about AI?

My advice is to invest the time and energy into reading your contracts before you sign anything. Have your questions ready for your realtor, experienced friends, real estate attorney, or even Google. In today’s marketplace there are AI tools available that may be able to read your contract for you and answer questions. Adobe Acrobat recently introduced contract intelligence in Acrobat AI Assistant to assist with understanding the contents of contracts through the provision of straightforward explanations.

If you think you have zero time to read your contract, it may reduce your risks of getting into a bad deal if you utilize the power of AI. If you would like a sample 2-T form, please send me an email at CJ@clairesells.com.