What happens when a contract term is left blank? Some agents assume that it means the value in the blank is zero or that the term is not part of the contract. However, leaving a blank in part of a contract that should be filled out generally is legally ambiguous. If the parties cannot come to an agreement about what the blank means, then a court would have to decide. Courts may insert a reasonable term based on the circumstances. Therefore, it’s important that all terms be carefully reviewed by the parties and that all blanks be filled in. Also, be mindful to follow instructions in the form, such as only checking one box where only one option should be noted. If a party checks more than one box or no box in those instances, it would again lead to ambiguity in the terms agreed to by the parties.
–Traci Jackson, staff attorney
Are you talking about the term of a loan in the “Third Party Financing” Addendum?
Following. I would presume all TREC promulgated forms, at the very least.
What are they referring to as “term of the contract”?
Come on guys…. there are multiple “terms” in the 1-4 Family and the various addendums that accompany it. Let’s do an exercise…. Let’s get out the TREC 1-4 and let’s see how many blanks refer to a “term”. I am going to go first! On page one there is one blank (also includes a box to check) that refers to a “term”. I think that is the correct answer but maybe not. Anyone want to challenge my answer (or affirm it?)? How about page 2…. SOME ONE want to tackle page 2???
Every blank in the promulgated forms is there for a reason and applies to a term of the contract. Term can mean how long a contract goes, but in this context term refers to the various provisions of a contract that set out the agreement of the parties on different issues and parts of the deal. Addendums to contracts are part of the contracts. There are major terms such as price, earnest money, property acceptance, etc. – but even more minor terms matter and there is a reason they are in the promulgated forms.
Yes, it is scary that so many agents seem to be clueless when it comes to our promulgated forms. That is the reason that I have pushed for, and FINALLY got, TREC to require a contracts refresher course for each renewal. Isn’t that one of the fundamental reasons buyers and sellers hire us, and not for your Tik Tok skills!?
So, the article is a little ambiguous. I “believe” the advice above means don’t leave any blanks empty??? Seems I was taught to never leave anything blank. We should insert “NA” or not applicable?
Yes, most every blank should have n/a in it. I have offer submission instructions on my listings, filling in blanks is one of them. I send the offers back to other agents, if I get blanks, to complete properly.
That’s what I do. Had an attorney for my seller gently chastise me many years ago about this. No blanks!
zipforms does not always allow to input “NA” on certain blanks. Is there a way around that?