Waiver

Real Estate Term: Waiver

Definition

A waiver in real estate refers to the voluntary renunciation, abandonment, or surrender of a known claim, right, or privilege. This can occur in various scenarios, such as a property purchase agreement, rental lease, mortgage contract, or any other legal situation in real estate transactions. The purpose of a waiver is typically to allow the affected party to forgo legal protection or enforcement of certain terms for mutual benefit or necessary adjustments.

Examples

1. Inspection Waiver: A buyer agrees to waive their right to a home inspection in order to make their purchase offer more attractive to the seller in a competitive market.
2. Appraisal Waiver: A lender decides to waive the requirement for an appraisal in a refinancing transaction, often for low-risk borrowers with significant equity.
3. Contingency Waiver: A buyer might waive certain contingencies in the purchase agreement, such as financing or inspection contingencies, to expedite the home-buying process.
4. Landlord Waiver: A landlord provides a waiver for a specific lease clause that prohibits pets, allowing the tenant to keep a pet in the rental property.

Frequently Asked Questions

What is the purpose of a waiver in real estate?

• The primary purpose of a waiver in real estate is to allow one party to relinquish certain legal rights or protections, often to facilitate smoother transactions, negotiations, or to address specific circumstances.

Can waivers be verbal, or must they be in writing?

• While verbal waivers can be legally binding in some scenarios, it is generally advisable for waivers to be in writing to avoid disputes and ensure clear documentation of the agreement.

Is a waiver the same as a release?

• No, a waiver is the voluntarily giving up of a right or claim, whereas a release is an agreement between parties to relinquish any claims or disputes they have against each other.

Do both parties need to agree to a waiver?

• Typically, a waiver must be agreed upon by both parties involved in the transaction or agreement. One party cannot unilaterally impose a waiver on the other.

Can waivers be revoked once given?

• Generally, waivers are not revocable once they are given, especially if the other party has already relied on the waiver. However, specific conditions for revocation might be included in the waiver terms.

Related Terms with Definitions

• Contingency: A condition in a contract that must be met for the contract to be binding.
• Abandonment: The act of voluntarily giving up possession and rights to a property with no intention of reclaiming it.
• Release: A document by which one party relinquishes its claim against another party in exchange for some consideration.
• Easement: A legal right to use someone else’s land for a specific limited purpose.
• Indemnity: A contractual obligation of one party to compensate the loss incurred by the other party due to the acts of the indemnitor or any other party.

Online Resources

• Nolo’s Waiver Overview
• LegalMatch’s Waiver Information
• FindLaw’s Contracts and Waivers

References

• Black, H.C., & Garner, B.A. (2009). Black’s Law Dictionary. West Publishing Co.
• Miller, R.L., & Jentz, G.A. (2012). Fundamentals of Business Law: Summarized Cases. Cengage Learning.
• “Waiver.” (2021). Encyclopedia Britannica. Retrieved from https://www.britannica.com/topic/waiver

Suggested Books for Further Studies

• Smith, R.H. (2010). Negotiating Real Estate: The Keys to the Safe.
• Bogert, G.T., Bogert, G.G., & Hess, E.K. (2020). The Law of Contracts and the Uniform Commercial Code.
• Malabre, N. (2017). Property Law: Rules, Policies, and Practices.

Real Estate Basics: Waiver Fundamentals Quiz