In society, people are always rushing. We download videos fast, stream music instantly, and eat fast food on the go. However, you should never feel rushed when reviewing a contract. As a Michigan real estate attorney with over 35 years of experience, I see countless clients panic. They signed an agreement without understanding its terms.
Every written contract carries legal obligations that can follow you for years. This applies to purchase agreements, land contracts, employment offers, and business sales. Take 24 hours to read and understand the document, or have an attorney review it. This simple step is vital to protect yourself.
In this guide, I explain why you must review contracts before signing. You will learn your legal obligations and how an experienced attorney helps you avoid costly mistakes.
The 24-Hour Rule: Why You Should Never Sign Under Pressure
Here is a rule I share with every client: if someone presents you with a contract, do not sign it on the spot. Instead, take at least 24 hours to review the document carefully. This rule covers real estate contracts, business deals, employment offers, and service agreements.
Why 24 hours? Pressure is the enemy of good decision-making. Salespeople, real estate agents, and even well-meaning business partners sometimes create a sense of urgency around signing. They may claim the deal will disappear, the terms are “standard,” or there is nothing to worry about. In my experience, those assurances often turn out to be wrong.
Additionally, taking time allows you to read the document more than once. The first read-through helps you understand the general terms. The second read catches missed details. Pay close attention to the default and termination provisions that most people skip entirely. If anything seems confusing, use that 24-hour window to consult an attorney before you commit.
Michigan’s “Duty to Read” Doctrine: What It Means for You
Many people assume that if they did not read a contract, they cannot be held to its terms. Unfortunately, the law says otherwise. Michigan courts enforce the “duty to read” doctrine. Under this principle, judges presume you read and understood every word before signing.
In Michigan, the courts explicitly hold that signers understand their contracts. In other words, your signature acknowledges everything in the document—even if you never read it. Furthermore, failing to read a contract is never a valid legal defense. Courts will not rescind a contract simply because you failed to read it, unless fraud or deception is involved.
Therefore, signing a contract without reading it binds you to its terms. The courts will not rescue you simply because you were in a rush or trusted the other party’s verbal assurances.
Limited Exceptions to the Duty to Read
There are narrow circumstances where courts may excuse a party from the duty to read. These exceptions typically involve situations where the other party engaged in affirmative misconduct. Specifically, courts recognize exceptions for:
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Fraud or misrepresentation: If the other party actively concealed or lied about the terms, you may void the agreement.
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Duress or undue influence: If threats or improper pressure forced you to sign, the contract may be voidable.
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Unconscionability: A court may refuse to enforce terms that are entirely one-sided and oppressive.
However, these defenses are difficult to prove and require substantial evidence. Therefore, the safest approach is always to read every word before you sign.
Why the First 20% of a Contract Can Mislead You
I always tell clients that the first 20% of a contract holds the exciting details. This includes the purchase price, compensation, or property description. People read this section because they look forward to the transaction. You want to buy a home, land a new job, or close a business deal. Consequently, the positive terms at the beginning create momentum that encourages you to sign quickly.
However, the remaining 80% of the contract holds the real substance. These sections typically contain default provisions, termination clauses, liability limitations, indemnification obligations, and dispute resolution requirements.
Unlike the opening terms, these clauses define what happens when things go wrong. Unfortunately, problems arise more often than expected. For example, a contract dispute over a default provision can cost tens of thousands of dollars to resolve. If you read that provision beforehand, you might have negotiated different terms or walked away entirely.
Contract Contingencies in Michigan Real Estate
One area where failing to read a contract creates especially serious consequences is Michigan real estate. Real estate purchase agreements typically contain critical contingencies. These are conditions required to close the sale. If you miss these deadlines, you lose significant legal protections.
The Inspection Contingency
An inspection contingency gives buyers a specific window—often 14 days—to hire a professional inspector. If the inspector finds serious problems like foundation issues or faulty wiring, you can renegotiate. You can also request repairs or back out without penalty. If you miss the inspection deadline, however, you waive this right completely.
The Financing Contingency
A financing contingency lets you cancel the agreement if you cannot secure a mortgage within a specified timeframe. This protects you because mortgage approvals can fall through due to job loss, credit issues, or changing lending standards. Without it, an unapproved buyer might forfeit their earnest money deposit and face a breach of contract claim.
The Appraisal Contingency
An appraisal contingency requires that the property appraise at or above the purchase price. If the appraisal comes in lower than expected, the buyer can renegotiate the price or withdraw. In competitive markets, some buyers waive appraisal contingencies to make offers more attractive. This is risky and requires legal advice.
Case Study: A Near Miss
I recently represented a young man purchasing a newer home for $600,000 with a $30,000 earnest money deposit. He did not read his contract carefully and had second thoughts a couple of weeks after signing. When he called me in a panic, I reviewed the agreement and discovered he had already missed his inspection period contingency.
Fortunately, the financing contingency remained active. Because his job security changed, his lender denied the loan. That financing contingency ultimately became his exit from the contract. Had it already expired, he could have lost $30,000 or more.
Michigan’s Statute of Frauds: Written vs. Verbal
Understanding when a contract must be in writing is another critical reason to involve an attorney. Michigan’s Statute of Frauds requires written, signed agreements for specific transactions. These include:
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Agreements that cannot be performed within one year
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Promises to answer for the debt of another person
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Agreements made in consideration of marriage
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Agreements related to the sale of an interest in real estate
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Agreements to pay a real estate commission
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Promises by a financial institution to lend money or extend credit
For real estate specifically, the law states that transfers are invalid unless written and signed by the property owner. This means that verbal promises about real estate deals are completely unenforceable in Michigan. Therefore, written agreements are a legal requirement for real estate, land contracts, deeds, and business deals.
What an Attorney Looks for When Reviewing a Contract
When clients bring contracts to my office, I look beyond the purchase price. Specifically, an experienced contract attorney will evaluate:
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Default and breach provisions. These clauses define what happens if a party fails their obligations. They often include penalties, deposit forfeitures, and lawsuits.
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Indemnification clauses. These require you to cover the other party’s legal costs, even if you did nothing wrong.
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Dispute resolution clauses. Some contracts mandate arbitration instead of court, restrict lawsuit locations, or waive class actions.
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Termination provisions. How do you exit? What are the early penalties? Beware of automatic renewal clauses that extend your obligations silently.
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Compliance with law. Courts do not enforce illegal terms. An attorney identifies void provisions or conflicts with statutes like the Seller Disclosure Act.
An upfront attorney review costs a fraction of a post-signing courtroom battle. Spending a few hundred dollars today can save you tens of thousands tomorrow.
Common Mistakes People Make When Signing Contracts
Over more than three decades of practice, I have seen the same contract mistakes repeated over and over. Here are the most common ones:
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Trusting verbal promises over written terms. People rely on speech, but the text often differs. Legally, the written contract supersedes prior verbal talk.
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Skipping the “boilerplate” sections. Standard closing language—like governing law and jurisdiction—carries major legal consequences.
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Ignoring earnest money rules. Michigan real estate deposits can be massive. You risk losing yours entirely if you do not know the refund rules.
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Signing for the wrong entity. Business owners must sign as representatives of their LLC or corporation. Signing individually exposes you to personal liability.
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Assuming easy cancellation. Most contracts have no “cooling off” period. Your signature binds you instantly.
Frequently Asked Questions
Why should I have a lawyer review a contract before signing? An attorney identifies unfavorable terms, explains complex legal language, and flags unenforceable provisions. The cost of a review is far less than a court dispute.
What happens if you sign a contract without reading it in Michigan? Under the “duty to read” doctrine, courts presume you understood every term. Failure to read a contract is not a valid defense against its enforcement.
Can you get out of a contract you didn’t read in Michigan? In most cases, no. Exceptions exist only if the other party engaged in fraud, misrepresentation, duress, or undue influence. Because these defenses are hard to prove, always read before signing.
What is the duty to read doctrine in Michigan? It is a legal principle stating that signers know and accept their contract terms. Michigan courts consistently rule that ignorance of contract terms does not excuse you from your obligations.
How long should I take to review a contract before signing? Take a minimum of 24 hours. Complex agreements—like real estate purchases, business contracts, or employment deals—often require several days for a proper review.
What contract contingencies should I look for in a real estate purchase agreement? Look for inspection, financing, and appraisal contingencies. Each has a strict deadline. Missing a deadline waives your protections entirely.
Do I need a lawyer to review a real estate contract in Michigan? The law does not require an attorney at closing, but hiring one to review your purchase agreement is highly recommended. An experienced Michigan real estate attorney protects your interests and prevents costly errors.
About David Soble: David is a seasoned real estate and finance attorney with more than 35 years of experience, combining his background as a “big bank insider” with a commitment to demystifying complex legal issues for his clients. As the founding attorney of Soble Law (Soble PLC), he leads a specialized team in Michigan and Ohio that handles real estate transactions, contract disputes, probate, and financial litigation. Known for a practical, no-nonsense approach and peer-rated excellence (Martindale-Hubbell AV Preeminent), Soble and his team strive to protect clients’ property and financial interests with clarity, integrity, and experience.
Disclaimer: The information in this article is for general educational purposes only and does not constitute formal legal, financial, tax, real estate, finance, probate, or any other professional service or advice. Reading this content or contacting us does not establish an attorney-client relationship. Every situation is unique and laws change frequently, so you should always consult with your own qualified attorney or professional advisor before making any decisions.
