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Importance of a Paper Trail

By DDR Realty

Real Estate Broker/Owner with DDR Realty

October 06, 2007 10:10 AM

Maintaining a paper trail for each transaction is important in our business. A paper trail becomes even more important to have in the event of litigation. Having a detail paper trail could make the difference between exoneration and guilt.

It is wise to always put everything in writing and follow-up telephone calls with written memos, letters or E-mails. Notes of activities of and on each transaction, should be keep in such a manner that the events of the transactions could be recreated, if necessary.

In essence, being able to prove what took place is paramount.

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DDR Realty

DDR Realty - Newburgh, NY

Orange County NY

Jennifer - Unfortunately, I too know of many who were in a similar situation and they lost.

Oct 06, 2007 08:13 PM

DDR Realty

DDR Realty - Newburgh, NY

Orange County NY

Rosario - That is true, it doesn't seem to be important until it's needed. But it is better to have and not need than to need and not have.

Oct 06, 2007 08:15 PM

Frances C. Rokicki

Fran Rokicki Realty, LLC - Bolton, CT

Broker-Mentor,CRS

I agree, write it down, print out emails, and follow-thru by sending to the client's attorney. Letting the parties know you have consistent documentation is very strong. Usually, stops a lot of nonsense, too.

It's a Good Life!

Fran Rokicki, Clubnet~Mentor

Oct 07, 2007 02:19 AM

DDR Realty

DDR Realty - Newburgh, NY

Orange County NY

Frances - That is very true about stopping the nonsense before hand, a strong offense is a good defense. If you have both, then you're in the driver's seat.

Oct 07, 2007 02:22 AM

Barbara Mulcahy

Re/Max Integrity Advantage - Berkeley Heights, NJ

ABR, CRS - Your Berkeley Heights Real Estate Source

Great post Derrick - in this digital age, it's really easy to keep notes on everything and then write them to a CD and stick them in the file - that's what I do.

Oct 07, 2007 01:48 PM

DDR Realty

DDR Realty - Newburgh, NY

Orange County NY

Barbara - That is a good idea. Much space is save do it this way and archives consisting of paper files are cumbersome to go through.

Oct 07, 2007 10:16 PM

Barbara-Jo Roberts Berberi, MA, PSA, TRC - Greater Clearwater Florida Residential Real Estate Professional

Charles Rutenberg Realty - Clearwater, FL

Palm Harbor, Dunedin, Clearwater, Safety Harbor

I keep an e-mail trail of all correspondence and an e-fax trail of all contracts! I agree, you have to have everything in writing of some form!

Oct 08, 2007 02:40 AM

DDR Realty

DDR Realty - Newburgh, NY

Orange County NY

Barbara-Jo & Bill - That is definitely a wise thing to do.

Oct 08, 2007 03:51 AM

Gilda Goble Stewart

Corson Realty Group/Bay Ridge Property Management - Tampa, FL

My lawyer trained me with this mantra.......the one with the most paper wins! I memorialize everything almost to a fault so if I am in court I will have what I need to defend myself.

Gilda

Oct 08, 2007 06:14 AM

Daniel J. Brudnok, REALTOR

Berkshire Hathaway Home Services Fox & Roach, REALTORS - Exton - PA License #RS-225179-L / Delaware License #RS-0025038 - Downingtown, PA

SRES, e-PRO,ABR,GREEN,CSP

Derrick,

I attempt to do everything in writing (paper or email).....in lieu of that I ask for voice mail to confirm or approve anything.

I have had to prove myself against some unwarranted comments and accusations, and fortunately I have been found in the right....ONLY because of my paper trail and such.

Great point and I hope everyone listens.

Oct 08, 2007 07:08 AM

Armando Rodriguez

QUEST REALTY SERVICES - Orlando, FL

Orlando Homes 4 Sale, Real Estate Broker-GRI

I save everything, especially emails. I'll usually send an email whenever a verbal okay or understanding is reached.

Good post!

Oct 08, 2007 12:54 PM

DDR Realty

DDR Realty - Newburgh, NY

Orange County NY

Gilda - Having it in writing provides the proof as evidence in court.

Dan - Having to defend against accusations is not a good position to be in, fortunately you kept a paper trail and were able to disprove the accusations.

Armando - That's exactly what I do also. I follow-up a verbal agreement with a detailed E-mail and also request a E-Mail reply or response from the other party.

Oct 08, 2007 11:58 PM

Debbie Malone

Londeree's Real Estate & Property Management - Lynchburg, VA

From Lynchburg To The Lake (434) 546-0369

Great post Derrick, I communicate primarily by email and set up folders and have a copy of all my transactions.

Oct 09, 2007 12:44 PM

DDR Realty

DDR Realty - Newburgh, NY

Orange County NY

Debbie - Thanks. It is good that you do.

Oct 09, 2007 01:06 PM

Loreena and Michael Yeo

3:16 team REALTY ~ Locally-owned Prosper TX Real Estate Co. - Prosper, TX

Real Estate Agents

I learnt to do this well..... I have helped a client dismissed a mediation because of it. Hence, I'm a firm believer now.

Oct 10, 2007 03:35 PM

DDR Realty

DDR Realty - Newburgh, NY

Orange County NY

Loreena - Good for you. In this case, it's better late than never.

Oct 10, 2007 11:23 PM

Dale Campbell

Virginia Real Estate - Mechanicsville, VA

How true - it is so imperative in the litigious world to keep more paperwork than you need. Also, it is a tendency now in a paperless world to try to eliminate it. I try to scan everything and save on an external hard drive, so space is not an issue.

Oct 13, 2007 10:16 AM

DDR Realty

DDR Realty - Newburgh, NY

Orange County NY

Dale - Paper Trail is the term used, but of course other media can be used. Spaced is definitely saved archiving to disk. And that is a good point. The key is to put it in writing and keep a record of it. Thanks.

Oct 13, 2007 12:01 PM

Gilda Goble Stewart

Corson Realty Group/Bay Ridge Property Management - Tampa, FL

Another thought.......I have been in deals where the buyers agent was obviously inexperienced in savvy negotiations. Emotions came through and comments were made that could be considered libelous. When I would receive calls from the emotionally charged buyer's agent, I would purposefully not take the call. A voice mail was left as well as a date/time stamp. All of the above is kept as evidence.

Oct 17, 2007 09:25 AM

DDR Realty

DDR Realty - Newburgh, NY

Orange County NY

Gilda - It's truly a shame that you need to CYA in this manner, but it is wise that you do. Thanks for stopping by again!

Oct 18, 2007 10:41 AM