Do Courts Review the Boiler Plate Language in Contracts?

Agents often ask us whether courts consider the boiler plate disclaimer language in real estate agreements. The answer is “Yes.”

Recently, a federal court was evaluating whether borrowers were required to reimburse a lender for costs associated with an environmental study. The district court found in favor of the lender whereas the appellate court reversed finding under the technical and specific “Boiler Plate Language” in the loan agreements, the borrower was not responsible for the costs.

While many times the buyers and the sellers treat the boiler plate provisions as “part of the furniture” and therefore, assume it is unimportant, this is an example of a court who took the language in those contracts seriously. It is also a lesson for us to ensure we have read the contracts and understand them before our clients sign them.

Shannon B. Jones, Partner, sbj@sbj-law.com