Void, voidable, or illegal. If you're a lawyer then you probably knew right off that I'm going to be talking about contracts. For the rest of us, void, voidable or illegal siimply refers to what contracts are if one or more of the essential elements are missing or improper.

The more time I spend dealing with real estate contracts, the more I learn. The more I learn, the more I realize how little I know. I took a wonderful course last year entitled "Critical Pitfalls in the Residential Real Estate Purchase Contract". While it was residentially oriented, most of it was directly transferrable to commercial contracts.

The bottom line of the course was how many holes are in real estate purchase contracts. While many stem from human error, the reality is that our legal system is so complex and so onerous, that just about anyone will make some sort of mistake. Just as common, to arrive at an agreement between two parties with differing objectives (I want to protect me, you want to protect you), compromises have to be made. Every time we make a compromise, we open a door to a potential legal issue. So, we can completely protect ourselves and...well...never make a deal, or we can compromise and open the door to potential issues.

Another challenge arises when one of the parties to the transaction is more sophisticated than the other and knows how to tip the scale in his or her favour at the expense of the other party.

Let me ask you a few questions. Is a photocopy of a Real Property Report legally acceptable? Since a movable shed is personal property, does it need to be on a Real Property Report? Can acceptance of offers be communicated orally, as long as it's between licenced agents? Can agent and lawyer information be added in to the contract at the time of acceptance? Can offers be withdrawn anytime up until acceptance? Is it sufficient notice if one agent calls the other to notify her that my client has withdrawn his offer?

How sure are you of your answers? The instructor of this course was a lawyer who solely practiced in the area of real estate. I asked him what percentage of contracts he felt he could get his clients out of. I don't recall his exact answer (lawyers don't give exact answers (sorry for that lawyer shot)) but it was somewhere around 80%.

Now in most transactions, the seller and buyer are willing to complete so the transaction goes through okay, but somewhere around 80% of those transactions are a problem waiting to happen. So how can you protect yourself?  Let me give you a few suggestions. There is a difference between a "practitioner" and a REALTOR®. REALTORS® are members of the Canadian Real Estate Association and have numerous ethical standards to adhere to and numerous educational opportunities. Do your homework when choosing your REALTOR® and choose one that adheres to those ethical standards to the best of his/her ability. Choose a REALTOR® that takes advantage of those educational activities to better his practice. Choose a REALTOR® that specializes in the area you are interested in.

Add in a condition to your offer "Subject to satisfactory lawyer review" (in actuality the wording would likely be more specific but you get the message). Commercial real estate offers can be complex and it is quite common to add such a clause. And don't use your cousin Frank as your lawyer because he is your cousin. Use a lawyer that specializes in commercial real estate and/or contract law. Lawyers, like REALTORS®, often specialize in different areas.

Hopefully by following a few simple ideas, your lawyer will never sit you down to have a discussion about void, voidable or illegal.