It does not take much time to look online to find so-called “form contracts” for any number of uses. Some people, in fact, may see these as extremely useful, but they carry some serious potential drawbacks if you rely on them too much, particularly in the case of real estate transactions. But what exactly is a form contract, and why might you want to avoid using one?
What is a Form Contract?
A form contract, put simply, is a pre-made contract with broad terms and generic language that can be used with minimal modification. Some companies will create their own form contracts, which are used as part of standardized transactions (such as order forms, for example). Other times, these contracts can be found on websites that offer them to small businesses or individuals, often for free or for relatively cheap prices.
Why Do People Use Form Contracts?
Form contracts offer three primary advantages: they are simple, they are cheap, and they are relatively easy to use. For businesses, it can make the process of doing business much easier to simply have a form contract for buying and selling goods or services. For individuals, they can help avoid the cost and difficulty involved in hiring a lawyer to negotiate a contract.
What Are the Downsides of Form Contracts?
The primary issue with form contracts is that they tend to be one-size-fits-all, often failing to account for specific issues that may arise in individual circumstances. They also may not account for differences in the law between certain jurisdictions, or changes in the law that occur over time. If you do not have a lawyer at least review your contract, you could face legal issues that arise from simply not having a contract suited to your needs.
If you are looking to buy or sell a home, or engage in any other significant economic transaction, do not sign a contract unless you’ve at least had a lawyer look it over. They can help identify potential problems you may have missed, and protect you from potential liability. Fortunately, in New Jersey, you have a three-day window after signing a real estate contract to have it reviewed by a lawyer, which you should make sure to take advantage of.
The New Jersey real estate lawyers at Riley and Gutman, LLC, are ready to assist you with your real estate transaction. We are committed to providing prompt, experienced and personal service to our clients, and will provide you with the legal support you need throughout your transaction and beyond. Give us a call at 731-431-0300, or visit our contact page for more information.