When in Doubt, Write it Out

Happy Friday Red Rock Agents,

It is mid-January but today it feels like April and I’m OK with that. Business is officially at the crazy point and some people are getting just a little weird. I have had some interesting items come across my desk this week. I hope that most of you accepted my challenge form last week and read the REPC in detail. If you did some of the issues, I will go over next will be clearer to you.

First issue and this happens more that you may think. Buyer’s agent puts an offer together and in section 1.2 Other included items states the swing set is included with the purchase. The deal closes and the swing set is left but the seller took the basketball standard that was bolted to the concrete. Buyer is in disbelief that it’s gone and asks the agent what happened? The question I put to all of you is, should the seller have left it as it is appurtenant to the property? Agent felt that would be the case, after all it was bolted to the property. It seems that would be the case. Let’s look at other items that may fall into the same category. Freestanding hot tubs, metal artwork, sump pumps, window air conditioner units, and the list could go on. I know the list because I have dealt with every item I just mentioned. Here’s the deal. When in doubt write it out, regardless if it is attached. It will make it conclusive.

This one we have had happen from time to time. Agents have a tendency when terms change rapidly in a transaction, like the buyer or seller already agreed to that before this addendum was sent to the other party for signatures. So, some agents will say “Let’s just toss this one out and move on”. If either party has signed that addendum never just toss it out. If an issue comes up over whatever was on that addendum that was tossed, guess who’s on the hook. Yep, you are. In fact, if either party has signed a form it is part of the contract and should never be just tossed. If the receiving party refuses to sign it write that on the bottom of the form and include it in our files. If it goes to court or mediation guess what suddenly appears? Yes, it’s the tossed-out addendum that was signed by one of the parties of the transaction. You can only guess what happens then, a big mess and both agents have eggs on their face at the very least. DON’T TRY TO CUT CORNERS it may work most of the time. It’s that one time when it doesn’t things go bad fast.

I know that more and more agents lose clients to other agents because they have no agency in writing between them. The client shows up at an open house or a development and the site agent asks, “Are you working with an agent”? The client says yes, I am, and the site agent asks, “Have you signed anything with them”? When your client tells them no, chances are you just lost your client. We all know the bad players out there that will take them with sweet talk all day long. What can we do about it? Not much if anything. Agents must cross the bridge of a signed agency at first meeting, or you run the risk of losing them as they shop around on their own. Crossing that bridge of a written agency agreement is as big a deal as the agent makes it. When a client feels like they won’t sign it, ask why. Then get real with them by expressing your concerns over the lack of a written agreement. Ask them if they plan on just using your talent for nothing. It seems a little aggressive and it is, but you can also explain that this is how you do business. Right to the point, with no room for error or misunderstanding. Then ask them is that the kind of agent you want to help negotiate your transaction, and make sure your interests are protected? Time after time the answer is yes because they want a Tiger on their side. Please never hesitate to call me or Allen for help, it’s what we do. Challenge for the week, read the Buyer Broker Agreement.

Please have a great weekend and be safe out there,

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