"SOLD SIGNS" REVISITED

In the previous issue of the Real Estate Bulletin, an article from the Georgia Real Estate Commission's newsletter was reprinted in which the Georgia Commission instructed its licensees not to place "SOLD" signs on properties before the sales transaction had closed. According to the article, "Placing a 'SOLD' sign on a property on which the parties have not fully executed the provisions of the sales agreement is misleading and inaccurate:' and that "Licensees who wish to indicate on a sign that a sales agreement has been signed on a particular property should consider using language such as 'under contract: 'contract pending: or 'sale pending'.

The North Carolina Real Estate Commission published the article, as it does many articles, for the edification of its licensees, and to keep licensees abreast of the real estate and license law trends in other jurisdictions. The "SOLD" sign article represents the current law of Georgia. The North Carolina courts have not adopted the decision, but it is conceivable that they could do so in the future.

A technical analysis of the issue indicates that the most accurate representation of the state of realm that has a contract on it, but has not gone to closing, is that the property-is under contract but not yet sold as the public commonly understands the meaning of the word, "sold". Therefore, it would be more accurate to place on the property a sign reading, "Under contract': "SALE PENDING': or some similar term.

The North Carolina Real Estate Commission agrees in principle with this analysis. Licensees may wish to consider ordering "SALE PENDING" signs as their old "SOLD" signs wear out.