Handling Bilingual Contracts In The Real Estate Market
In recent years, translation has become important in the real estate sector because there are more demands to invest in properties around the globe. This has given rise to more bilingual contracts.
Bilingual contracts are usually written in two languages. They are more common in China mostly because the Chinese party does not have the necessary English language skills. Let us see how to handle bilingual contracts in the real estate market.
Employ translation services
In bilingual contracts, there is usually a tendency to include a clause that states that the original language supersedes in the event that there is a dispute. Now, the problem is that this clause could be stated in both languages, each separately giving the power to the language in question.
For example, if the languages were Spanish and French, it could be written in Spanish that since it is the originating language it should supersede but in the French translation, it will be stated too that it will supersede in the case of a dispute. Now, if the French dealer doesn’t know how to speak Spanish, he or she wouldn’t know that there is a mix-up already.
If a party decides to sue the other for future reasons, everything would go through the Spanish court because it is the original language in this scenario. So, it is good to also understand all the details of the contract in the originating language and compare with yours. You can employ the help of business translation services for contract translation. This service will provide a very direct and easy-to-read adaptation of the text. That way, you can have all the details in the other language that concerns you.
Include prevailing language clauses
Another great way to handle the risk of contradictions between the two languages in the bilingual contract is by including a prevailing language clause. For an example if the contract was in Spanish, it could be stated expressly that the English text which is the second language will prevail in the case of contradictions. This could create a false sense of security but it is a good starting point.
Another scenario is that the prevailing language clause in English and Spanish are alike but other regulations in the Spanish contract text contain clear-cut wordings that the Spanish text shall prevail in the event of contradictions. Since this can lead to uncertainty regarding which language version shall prevail, it is good to include prevailing language clauses anywhere necessary throughout the contract.
Check that the different language versions are written paragraph by paragraph
Usually, the two language versions of the contract are written paragraph-by-paragraph. This would mean that for our previous example, the regulation in the English text comes first and then is followed immediately by the Spanish text.
If for any reason, the translated text is only an appendix to the contract, there will be a higher risk that any change to the English text during negotiations is not made in the translation. In this case, you may need to get a seasoned lawyer who knows how to speak and write both languages fluently to help you check through and make sure that there are no contradictions.
Pay attention to contract drafts that are being sent back and forth
In the process of negotiating, there is a possibility that the contract draft is being sent back and forth between any parties involved. You need to make sure that you apply strict document control by making a version for comparison between the last draft sent and the one received thereafter so that if there are any changes, you can pick them out.
In Chinese negotiations, additional changes are at most times, not conveyed to the other party. Particularly, pay attention to the use of numbers, commas, and full stops as they can change the meaning of the sentence depending on the language used. Include the sums written in letters in parentheses after the actual amount too.
Final word
There is a lot of competition in the real estate industry and when doing these deals, you have to be very careful with the contracts. Right from the initiation of any contract to its completion, a consultant’s role is important. The consultant takes care of property listings, client attraction, terms and conditions of sales and eventually draws up the contract. However, since there are other clients with most probably a different first language, it is better to create a bilingual contract so that both parties are clear on their agreements.
If you happen to be into a real estate deal with someone, and the contract is bilingual, exercise these cautions in the writeup and please get a professional translator and lawyer.
Source:: Multifamily Insiders
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