The interwoven and overlapping responsibilities of Real Estate Professionals baffle clients frequently and the professionals themselves often. Who is responsible for this or that? When something goes awry, who's feet will be in the fire, who's career on the chopping block?

Many of us have had a nightmare or two about making a mistake in our chosen career. Mistakes have the potential to cost us money. time or even our job. And, of paramount concern to the client,  the mistakes a real estate professional might make, whether he/she is the mortgage broker, the processor, the agent or anyone else involved in the transaction, can cost the Client money.

Let's leave the discussion about WHO is responsible for a mistake aside for a moment and focus on a more elemental concern. Our Clients need to know SOMEONE is acting as a safety net! Does it really matter who provides this service? I don't think so. If we all accept as fact that we are ALL responsible for our clients financial safety, the confusion surrounding who does what in the transaction becomes less important. The client's safety net (us) remains intact. We should all (in my opinion) take on the responsibility of learning more than the minimum necessary to do our individual jobs. We should all (in my opinion) go a step (or two or twenty) further than we are required to. If we do, and the net develops a hole, WE can act as  the failsafe, the "plan B", the contingency plan, the Safety Net.

If you have gotten this far and you are scratching your head wondering where this little diatribe is headed, the next paragraph will explain the very real situation that prompted me to think (and then write) about Safety Nets, and why you want to be one.

I overheard a conversation last week between two Loan Officers (good ones). One was asking the other about ways to offset a $1000 earnest money his client was in the process of losing. The two were discussing ways to credit this lost money back to the client on a future transaction. The client is still in the market for a home, but this particular transaction is dead in the water. The property itself (two manufactured homes on one tax parcel), was the stumbling block over which the purchase failed.

The loan officer felt lousy about his client losing the deposit. The financing contingency window of time had passed. The Realtor had let the buyer and loan officer know the seller was demanding the eanest money.

Not really expecting to find anything overlooked, I asked to see the Purchase and Sale Agreement. While reading it, I mumbled a question, "when did your client waive his Finance Contingency?". The Loan Officer responded, "he didn't, it expired". That got my attention!

In all fairness, let me point out that the Purchase and Sale, the Financing Addendum and many other forms used in Washington State are difficult to understand. AND I live with a Realtor. When I have questions, I can pick up the phone to get the answers.

In the example above, neither the Loan Officer nor the Realtor understood the Financing Addendum. The contingency must be formally (in writing) waived or it remains in effect. This had not been done.

After explaining why this clients earnest money was not in jeoporday to the Loan Officer, I called my in-house Realtor resource and confirmed what I believed. The seller had not demanded the Finance Contingency be waived, the buyer had not agreed to waive the contingency, therefore the cotingency remained in place and the buyer's earnest money was safe. The next phone call was to the selling Realtor. We discussed the relevant paragraphs in the Finance Addendum. Surprised, he agreed with me that the deposit needed to be returned to the Buyer. I suggested he confirm things with his Broker. The phone call ended on an upbeat tone.

It is far too easy to think that the Purchase and Sale Agreement is the purvue of the Realtor. As Loan Officers, we need to understand this document in all it's detail. It's a confusing document. Each one is slightly different. It is tedious to learn how to understand the legalese contained within its pages.

But folks, sometimes the net has a hole in it. When the net has a hole, WE need to be the Safety Net! Wasting time and energy discussing who is responsible for what simply distracts all of us from the responsibility we share; protecting our client's best interests.