Do it Right- Take your Time!

Happy Friday Red Rock Agents,

It’s a new year and time to push the bus of business forward. As crazy as last year has been this year has started not much better. One of the few things that has remained the same is our business. I feel that we need to get what we can while the getting is good. With that thought in mind I want to say that items I go over in Broker Bits are not directed at anyone. I do this simply to help you have a better understanding of our practice, and some of the errors that I see made often. If you were the person that gave me an example it’s all good, we have all made mistakes, and by making mistakes we learn. So, let’s learn a few things or at least be reminded.

I have seen a few items in addendums that give me some concern. When you write a counteroffer to another addendum, please take the time to spell things out. I have seen a few lately that read like this “1. Item 2 on addendum 4 shall be removed”. Now some of you will ask, What’s wrong with that? As Real Estate professionals we understand what is being done with that kind of contract language. I promise most of our clients don’t have any idea what that means. Please take the time to write everything out in detail so any person that reads it will understand it. I know that it takes time and seems like it’s a pain but remember that it is our duty. I have found that agents make hundreds of dollars an hour for the time of work some contracts take. Example if you spend 20 hours of work for a $15,000 commission it works out to be $750. per hour. I feel that we need to make sure that our contracts are done in a way, so anyone that can read will understand it.

Next item is contract deadlines. I have seen in section 24D agents write (On or before XXX date). I want all agents to understand that the date is the date there is not a before. Check out Section 21 of the REPC. When we make dates like that, be aware that the seller has every right to make the buyer close before the settlement date, it goes both ways. I once had a buyer that could close early, and I called the seller and told him the good news. He was not impressed and told me “I’ll go to settlement on the date stated and not one moment before”. Please read Section 21 again, all dates are firm. Says nothing about before. Now if it can close before the settlement date, draw up an addendum changing the settlement date and proceed with total agreement from both parties. If you have questions, please ask.

Next item, and it’s a biggie. I have seen this happen more and more often lately. Agents want to cut corners with paperwork and they are doing it like this. Cut and paste from one addendum to a blank addendum. Example, the agent cut the disclosure of interest section from that addendum, only section 1 and pasted it to a blank addendum and then added more items. I checked with the Division of Real Estate when I first saw this. The investigator wanted me to make a complaint and send the evidence to them. I told him that I would address it before I would send it to them, and he was Ok with that. It was made clear, that should not be done under any circumstance. Forms are done for a reason and we need to use ALL of the form, not just parts. Remember I’m just the messenger, it is not my rule it’s the divisions. Any questions please ask.

So. Next item, the ERS. I rarely attach anything to broker bits but will today. The ERS is a little confusing after the change the UAR made, but some are old mistakes mixed with some new ones. I’ll try to explain. In section 2 of that document, it covers commission, and has 2 places that are filled in. The first place is the TOTAL COMMISSION SELLER PAYS TO THE BROKERAGE. The second one is what the buyer’s office will receive. They are not added together to make the total, the only total is the first blank. Section 1 is the ENDING DATE OF THE LISTING. Please see the attached form.

I feel that with the new year I’ll issue some challenges throughout the year. Here is the first one. Please read the REPC from one end to the other every section and every word. I’m sure that you’ll be surprised with what you didn’t totally understand.

Be safe out there