The importance of clearly worded Due Diligence Request and Agreements (DDRAs)
Several brokers have reached out to me recently about poorly worded DDRAs, and so I wanted to send a friendly reminder on the topic. A precise and thoroughly written DDRA – including outlining the items to be fixed, in what manner, and by whom – is one of the most important documents in a transaction.
But don’t take my word for it. The NC Real Estate Commission released an excellent bulletin on the topic less than two years ago. That bulletin can be accessed here: https://bulletins.ncrec.gov/avoid-vaguely-written-ddras/
To summarize: 1) Never simply copy and paste references to items in the Home Inspection Report’s Summary Page with nothing more; and 2) Provide as much detail as possible after consulting with your Buyer client as to what their expectations are in having the items repaired.
The linked bulletin provides a bullet point list of things to keep in mind when preparing and negotiating DDRAs. Submitting vaguely worded DDRAs may not only draw the ire of your fellow agents but, more importantly, it may result in complaints by unhappy former clients, as well as potential discipline by the Commission.
In short, don’t be that agent. Submit clearly worded DDRAs, for everyone’s peace of mind!
Matthew Allen, J.D.
Professional Development, Land of the Sky Association of Realtors® School Director and Principal Instructor, Sky Land School of Real Estate