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Real estate law for everyone. Whether you\'re a landlord, renter, or property manager, you can find rules on rental property here. And if you\'re buying or selling a home, you\'ll find valuable tips and mortgage facts. Below you\'ll find users\' top picks on real estate, landlords, and tenants.
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| Owner : Overmon Poul Delfy |
| 35 Member(s) 2 Topic(s)
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| Showing 1 to 2 of 2 records. |
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| How Time Pressure Affects the Outcome of a Negotiation
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In Puerto Prince, Haiti, former President Jimmy Carter, Colin Powell, and Senator Sam Nunn were in intense negotiations with Haiti's military commander, General Cedras. The phone rang and it was President Clinton calling to tell them that he had already started the invasion and they had 30 minutes to get out of there.
That was putting extreme time pressure on the negotiation, and people become flexible under time pressure. When do your children ask you for something? Just as you're rushing out of the door, right? When my daughter Julia was attending the University of Southern California, she lived in a sorority house and would sometimes come home for the weekends and need money for books. When would she ask me? Seven o'clock on a Monday morning, just as she was racing out the door she'd say, "Dad, I'm sorry, I forgot; I need $60 for books."
I'd say, "Julia, don't do this to me. I teach this stuff. How come you've been home all weekend, and we didn't have a chance to talk about it before?"
"Oh sorry, Dad, I just didn't think about it until I got ready to go, but I'm late now, I've got to get on the freeway, or I'll be late for class. If I can't get my books today, I won't be able to get my assignment in on time. So please, can I have the money now, and we'll talk next weekend?"
Children are not that manipulative, but instinctively, over all those years of dealing with adults, they understand that under time pressure people become more flexible. The problem was that President Carter was putting time pressure on the wrong side.
Power Negotiators know that an interesting question is raised when both sides are approaching the same time deadline, as was the case in Haiti. Think of this in terms of you renewing your office lease for example. Let's say that your five-year lease is up in six months, and you must negotiation a renewal with your landlord. You might think to yourself, "I'll use time pressure on the landlord to get the best deal. I'll wait until the last moment to negotiate with him. That will put him under a great deal of time pressure. He'll know that if I move out the place will be vacant for several months until he can find a new tenant." That seems like a great strategy until you realize that there's no difference between that and the landlord refusing to negotiate until the last minute to put time pressure on you.
So, there you have a situation in which both sides are approaching the same time deadline. Which side should use time pressure and which side should avoid it? The answer is that the side who has the most power could use time pressure, but the side with the least power should avoid time pressure and negotiate well ahead of the deadline. Fair enough, but who has the most power? The side with the most options has the most power. If you can't reach a negotiated renewal of the lease, who has the best alternatives available to them? |
| Posted By : Overmon Poul Delfy |
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2010 Feb 01 11:21:31 AM |
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| Essential Contract Clauses
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Congratulations! You just purchased that new home study course. You followed the instructions. You found a good deal. You present your contract to the listing broker, and you get laughed at!
The reality is, real estate brokers don't like "seminar" forms. They are comfortable using the "standard" agreement, although the standard agreement is usually drafted to protect the real estate broker, not you. You must learn how to take any "standard" agreement and modify it to your liking. The following are some essential clauses I use when buying a property: “And/or assigns” or “and/or Nominees” - As the buyer, you want to have the right to assign your contract. By placing your name with the words, “and/or assigns,” you automatically give yourself that right. The words, “and/or nominees” is not as broad, but it has been interpreted as giving the buyer the right to place title in the name of a trust.
NOTE: If the contract contains an "anti-assignment" provision, you must cross that clause out. Inspection Clause - Have the right to make the contract contingent upon your right to do a thorough inspection before a certain date. Make certain that you are not required to hire a professional inspector and that the inspection clause permits you to cancel the contract if there are things wrong with the property and the seller is not willing to fix these or reduce the price.
Choice of Escrow Company - As the buyer, insist on the right to choose the title or escrow company so that you remain in control. A conservative or uncooperative escrow or title company can make life very difficult if you are trying to do a creative deal. Right to Extend - Most contracts call for a date certain for closing. If the buyer is not ready to close, the seller can hold him in default. Here are some tips for buying time: Make the closing date “on or about” June 1st. What does “on or about” mean? I’m not sure, but it certainly means LATER than June 1st! Have the right to extend the closing date if it is not your fault: “Said date may be extended an additional fifteen (15) days if lender requires additional documentation, paperwork or actions from the buyer and said delay is not due to the fault of the buyer.”
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| Posted By : Overmon Poul Delfy |
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2010 Feb 01 11:20:29 AM |
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