The next step involves the first contract. It is a legal document that spells out the price at which the house will be listed, the commission to be earned by the realtor, the length of time the agreement will be in force, the duties of the seller, the duties of the realtor and any additional terms that have been agreed upon. The realtor will also ask the homeowner to complete a questionnaire about the condition of the property and to fill out and sign a lead paint form if the house was built before 1978. It is very important to be truthful in filling out these forms. Caveat Emptor (let the buyer beware) is no longer acceptable. Homeowners and realtors are required to give full disclosure about the property. In filling out these forms, it is totally acceptable to say, “I don’t know” if indeed you don’t know. It is impossible to know about a problem that existed years before you owned the property and has never reappeared or one that is lurking around the corner. Being untruthful, however, can cause you problems that may have to be settled through costly litigation.
