What is the number-one mistake stagers make in their businesses? Not having a staging contract!! This is such a big mistake that it needs to be the subject of my first staging and lawyering post. Stagers, I beg you - invest time, money or whatever it takes to make up a solid staging contract. Not only can a contract solidify your business policies and give you consistency from client to client, but it can also save you from a lot of heartache if something goes wrong.
So, what is a contract? I know, it sounds like a stupid question - as part of modern society we deal with contracts on a daily basis. But so many times we enter into contracts and don't even think about it - we may not even realize we're entering into a relationship that falls into the definition of a "contract"!
A contract essentially is an agreement between two parties to do - or not do - something in exchange for something else. Contrary to popular belief, contracts do not always have to be in writing, nor do they have to be signed (but these are two steps that will be essential in your staging contract!).
There are some essential parts of a contract:
- Intent - On the part of the parties to enter into an agreement. In the staging world, this would be the homeowner or real estate agent contacting you about your services, and you saying you'll stage for them.
- Offer - Either you or the homeowner/real estate agent may be the one making the offer. You could be offering to stage, or they could be offering to pay you to stage.
- Acceptance - Just because someone makes you an offer doesn't mean you have to accept it. In order for there to be a contract, one party needs to accept.
- If you want to accept another person's offer on different terms than the ones they've given you, you're creating a new offer. For example, if a real estate agent offers you $100 to stage a room, and you, recognizing that your services are worth far more than $100 for the room, say, no, thanks, but I'll do it for $500, you've now rejected the real estate agent's offer and made your own offer. It's now up to the real estate agent to accept.
- Consideration - "Consideration" is just a fancy term for something being exchanged. In most staging contracts, you're going to be exchanging your staging services for money. However, it doesn't have to be money - you could also provide your services for the right to take photos of the property, the right to advertise in the property, or even for the right to use the real estate agent's vacation house for a weekend getaway.
In order to have an enforceable contract, you must have all of these things present, in as definite and as clear terms as possible. Don't worry about legalese - plain English that all parties to the contract can understand works just fine.
Under the law, there are certain types of contracts that always have to be in writing. The requirement of a writing depends on your circumstances. However, for purposes of your business - ALWAYS GET IT IN WRITING, and ALWAYS GET IT SIGNED BY EVERYONE INVOLVED! Yes, I'm yelling! Always keep a copy of the signed contract, and make sure that your homeowner or real estate agent also has a copy.
Don't be afraid to hand a client a long contract. Your contract needs to be as detailed and specific as possible. Often, if there were to be a dispute with a client over your contract, a court will only look to what is written in your contract to solve the dispute. The judge doesn't want to hear, "But your honor, that's what I meant to say . . ." Simply put, if it's not in your contract, more often than not you're going to lose your argument.
Finally, if a client doesn't like what's in your contract, and you don't feel comfortable changing it in the way the client wants you to, walk away. If the client is already asking you to change your policies now, you can be sure they're only going to be trouble further down the line. Get out while you still can!
Next post: OK, I get I need a contract. What, as a stager, should I consider having in my contract?
Legal disclaimer: This blog is intended to be for general informational purposes only - it does not create any attorney-client relationship, and it's not legal advice. The law may be different where you live, and every situation is different. Contact a lawyer licensed in your state directly to assess your individual situation. Thanks for reading!
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