There is an old saying that says "Ice Cream has No Bones!" It does not mean anything but in real estate we are inundated with nonsense everyday in negotiations. Slight of hand works great in a magic show, but not in contact negotiations where it paves the way for fraud and deception. Despite our own innermost warnings, we have become so numbed to gibberish and doubletalk we sometimes move forward into a deal that we should not. Such actions redefine the word "Trust" and only can be likened to the wolves gaurding the sheep. New homes builders seem to abuse this issue the most, but the issues are not limited to new homes. The signs are almost routine for anyone with expereinced in real estate. The usual suspects quickly arise: undisclosed fees, and conditions seem to surface out of nowhere when an agent is in counter. Just when you think you have the costs nailed down another surprise or addional fee pops up. The hidden fees are quoted to you as Gospel, as if you cshould have known all along... yet they are no where to be found anywhere in writing or disclosed in any fashion. It is like playing a board game and making up the rules as you go along. Lot premiums, credits and elevation upgrades are all ways to shake more money out of your clients pockets. More often than not the photos used in in the builders MLS photos are really homes that are priced about 350K more. At this juncture, the builder would say.."Oh, you want a brick front? We can do it! The addional costs will be...XXXX!" They do not even disclaim these are 'to be built' models or the photo of a similar home or 'Demo' home. The final product that is sold in no shape or form looks like anything similar to the displayed product. The only words that come to mind are "bait and switch!" The buyer often feels like they have been had! This is not a good position
The only way to protect your clients and yourself is to make sure that every option, each elevation, every additional upgrade, all paid closing costs, terms, and credits are placed in writing are signed off by all parties. Promises of "You can trust me", ...or "I promise I will do it" should never be accepted by anyone. In just about every state the statute of fraud demands all contracts, and terms be fully exucuted by all parties and it is wise to be in unambiguious language. This should also apply to all counters in negotiations, and not signed off on until the parties acknowledge all that was agreed upon is in writing, and that the totals for services and upgrades are placed side by side the itemized items.
Jim,
Contracts that cover every possible detail go a long way in keeping things clear to everybody. When you hear the words "You can trust me" usually means you are in trouble.