What Does the Contract Say?

July23

I read an interesting blog in The Oregonian today by an experienced agent regarding the inclusion of appliances in a real estate transaction. The article entitled “Know the Facts When Selling Appliances to the Buyer of Your Home” states that even if a listing advertises that all appliances are included in the sale of the property that the seller is under no obligation to actually leave the appliances for the buyer unless the sales contract clearly states that the appliances are included? Could that be right? Is that the case?

First, let’s get beyond the unequivocal nature of the answer where the agent states that without the appliances being written into the sales contract that it is 100% the seller’s right to not leave them behind, though in my experience in real estate it is clear that rarely is any situation quite that clear cut. It is certainly true that “advertising that appliances are included is not a contract”, but does the buyer’s expectation that the appliances will be included based on that advertising hold any sway at all? The answer is potentially. The question, in this case, would be who would be at fault for the appliances not being included even though the property was listed and advertised as including appliances? 

First and foremost, the buyer’s real estate agent could potentially be found to be at fault. Isn’t it the buyer’s agent’s job to protect and educate the buyer? Of course. It is ALWAYS preferable to write everything into the contract that the buyer expects. Nothing should be left to chance. A sticky situation such as the one described in the article could easily be avoided simply by stating in the contract that the appliances are, in fact, included. 

Might the listing agent be at fault? That’s a possibility, as well. I am not an attorney, but I’ve read stories where the listing agent was forced to buy the buyer new appliances based on the expectation level created through the listing agent’s advertising. Every scenario is unique and it’s dangerous to state that something is unequivocally true all the time. Listing agents would be well served to verify every thing they advertise with the seller. The seller should have the final word on all advertising.  What is advertising, after all, other than a way to entice buyers to the seller’s property?  Oregon law has long said that Realtors cannot intentionally mislead or misinform potential buyers in their advertising.  In fact, Realtors are even disallowed from “puffing”, which is the practice of exaggerating features.  Saying something is “the best” or “only” and the like is frowned upon.  Furthermore, the multiple listing service (RMLS) also has rules against misleading and misinforming.  It can certainly be argued that including a line such as “all appliances included” is tantamount to guaranteeing them. 

If the seller DID have final say on advertising and knowningly included the appliances in the ads is it possible that the seller could be at fault? Again, it’s possible. The writer states that it is only the sales contract between buyer and seller that matters, but I think that shows a misunderstanding of basic contract law. Again, I am not an attorney, but I do know that the major tenet of any contract is that all parties have a meeting of the minds. It can be argued that the buyer and seller, in this case, did NOT have a meeting of the minds since the buyer’s expectation was that the appliances would be included. That expectation was based on advertising the seller put out. This scenario could get ugly…fast. Did the seller KNOWINGLY mislead the buyer? If that’s the case then a gigantic can of worms might be opened. If it was simply a mistake or an oversight, that might be completely different. Again, every situation is unique and it’s dangerous to assume that everything is black and white.

I happen to know and respect the writer of the post and have done business with him in the past. In my opinion he is one of the better agents in town and I know that his intentions are good. His overall point, moreover, is valid. If you want to make sure disputes like these don’t happen, write clear contracts that spell everything out. However, while I respect the agent and agree with his overriding point, I do not agree with the entirety of the message.

About the Author | Jesse Knight

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