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Crybabies and Busybodies...

By
Real Estate Agent with Liz Carter & Team Realty-Your Real Estate Resource For Life!

Avoiding a Lawsuit with a Database?

The Ending of a Thriving Real Estate Career...

Caused by being sued from a disgruntled seller or buyer over a real estate transaction happens.  We live cry babyin a highly litigious society... that is a reality!  There is a growing tendency to not take personal responsibility for what happens in your life unfortunately.  Some people what to blame someone else for their mistakes, or lack of just about everything in life.  People are always looking for an "easy" way to get rich by suing someone for just about anything and everything that happens to them.  Remember the person that sued because the coffee was too hot, and they got burned?  Come on, grow up take responsibility for what happens in your own life, and stop blaming the other person.  However that is not reality, our society is full of crybabies and busybodies.  They think they are a victim who everyone is "out to get", they want to cry about what they see as all the injustices' aimed just at them.  Our society is also full of the type of person who wants to tell everyone else how to live their life.  There way is right, and everyone else is wrong.  They don't know the meaning of "live and let live", unless of course you do it, "their way"!   Enough already, take responsibility, and as long as someone is not causing damage to others, leave them along to live their life as they choose.

In the recent Active Rain contest,   Makeover 2 Takeover  there was much said about the benefits of having a good database, and which software was best.  In my opinion the two most important reasons to have a database were barely touched on, or not at all.  #1, a large data base that has been worked correctly and is well established is the only "salable" asset a Realtor has, should they decide to leave the business.  A database should produce at least 10% of the total number of people in it transactions per year.  If you have a 500 person database you should be able to expect to close 50 transactions every year, just from the database.  #2, which was not touched on at all, is a great database will not keep you out of a lawsuit, but it will make it highly likely that you win should you ever be sued.

A great paper trail is your best defense in a lawsuit, especially when it comes to a real estate scales of justictransaction.  Texas is one of the states with the highest lawsuits filed in the US, and used to be a lot worse.  There has been a lot of reform in Texas, but we have a long way to go.  Our laws are weighted in favor of the consumers/claimant.  The defendant has to prove they did no wrong...hence our cost of doing business is very high due to E & O Insurance (Errors and Omissions insurance).  It's something you must have or you could find yourself out of business overnight.  Lawyers know we have it, and they know what the dollar limit is, so they sue you for ten times the amount of your limit, and settle out of court for a lot less.  You still have lost time, attorneys fees, and all the other cost and emotions that occur when you are sued.

In 32 years of doing an extremely high volume of real estate transactions I have only been sued once...yes I just knocked on wood.  That's a damn good track record that I am thankful for, especially in these litigious society and times of ours.  The case which is a post in itself was filed against me by a buyer who claimed we failed to disclose defects' of the home he bought.  The really weird part is this was a past client of mine and he used to own the home he brought, and in fact had had it built originally!  I helped them in that transaction also several years before.  I also had sold the home for them when they got transferred.  I had it listed when the people who bought it from them got ready to sell, and strangely the original client of mine was being transferred back to Houston.  I of course had been in touch all this time, as I am with all my past clients.  I knew they were coming back and wanted me to help them find another home, our fourth transaction together.  I let them know what they had always referred to as their "dream home" was back on the market.  Obviously they knew the home; they build it, and lived in it for several years.  They did not even want to look at other homes; they wanted to buy back their "dream home", yippee.  Well these people had been in many lawsuits over their lives, I guess I should have know "I would hit their sue happy list one of these days", and I did...about four months after closing I got "the letter".

Needless to say I was highly insulted, frustrated, angry, and innocent.  None of that counts in a lawsuit, rsk in selling real estateor in our judicial system.  It's not who is right or wrong, it's about what makes more financial sense to the insurance company.  Is it cheaper for them to "settle" the lawsuit or fight it?  Nine times out of ten they settle, and you have no say if it is within your deductible.  The attorney for my E & O Insurance company said, "I have never seen a real estate agent that had as much or better detailed information as you do.  If more agents would keep files like you do, we would see far fewer lawsuits".  Yes they are still in my database; however their "contact type" has changed from past client, A client, Listor, Buyer, Christmas list, and Best Client to, S___ H___.  Fortunately that "contact type" has very few entries in it.

Be 100% honest, build your real estate business on the Golden Rule "Do Unto Others As You Would Have Them Do Unto You", so ask that question in every real estate transaction.  Keep detailed records and information in your database about every client and transaction you do.  Keep way more than you think you will ever need and keep it forever, you never know when you might need it.  Not only will a great database help you make money, it will help you KEEP IT.

To find our the latest on Active Rain's contest, check out Pre-Listing Package week 2 challenge, bringing in our A game...Team Tex-La...It's a great challenge again this week, and TWO TEAMS will be eliminated this week, so it's really A-GAME ON.

Liz Carter, owner/broker Liz Carter & Team Realty.  Serving Katy, Sugar Land, and the greater Houston Texas areas since 1976,  Call 281-391-SOLD (7653) or 800-783-4041.  WWW.lizcarter.com

Referrals Appreciated!

Comments (51)

Liz Carter
Liz Carter & Team Realty-Your Real Estate Resource For Life! - Katy, TX
Broker/Owner of Liz Carter & Team Realty, Katy TX (Houston)

Sally & David, yes that is what these people were.  I tried to find out how many times they had sued someone but was not able.  I personally know of SIX TIMES, Lord knows how many times they brought such grief into someones life...all for the sake of MONEY!  Liz

Margriet, using you cell phone exclusively for all you real estate transactions is a great idea!  I use a head set and tried the blue tooth thingy but never could get used to it.  I think it's in the bottom of my purse :).  Liz

Kat, YES, YES, YES.  Liz

Allison, you are very welcome, I hope it helps someone.  Liz

May 29, 2008 06:51 AM
Patricia Kennedy
RLAH@Properties - Washington, DC
Home in the Capital

Liz, now S--- H--- was not one of the categories in my database!  I usually delete them before we get that far!

May 29, 2008 08:20 AM
Patricia Kennedy
RLAH@Properties - Washington, DC
Home in the Capital

Liz, now S--- H--- was not one of the categories in my database!  I usually delete them before we get that far!

May 29, 2008 08:20 AM
Cheri Smith
Prudential Gary Greene, Cypress TX - Cypress, TX
Realtor Prudential Gary Greene

statute of limitations....that was the darn word I couldn't remember this morning!

May 29, 2008 09:33 AM
Marchel Peterson
Results Realty - Spring, TX
Spring TX Real Estate E-Pro

Hi Liz, I just saw Cheri's comment about the records.  I asked that question about a GRI class and he told me to keep them until they were dust.

May 29, 2008 12:42 PM
Liz Carter
Liz Carter & Team Realty-Your Real Estate Resource For Life! - Katy, TX
Broker/Owner of Liz Carter & Team Realty, Katy TX (Houston)

Cheri'...

Did you guess what it stands for???? S---H--- ?  Everyone needs that category in their database.  Not sure how we came up with that particular word, but it fits the people in it.  Great question for everyone...do you have a category in your database for folks you no longer want anything to do with, but need to keep for the records, paper trail, and what is the name of your contact type?

What is the name for your contact type in your database of past clients who you need to keep, but will hopefully never talk to again the rest of your life?_____________________question mark

 

 

Marchel, your instructor was soooo right, keep-um till their are dust, which hopefully happens before you are

May 29, 2008 01:08 PM
Liz Carter
Liz Carter & Team Realty-Your Real Estate Resource For Life! - Katy, TX
Broker/Owner of Liz Carter & Team Realty, Katy TX (Houston)

Pat, every Realtor needs that one :)

Cheri', don't you hat it when that happens, it drives me crazy!  Glad I use the one you were looking for. 

Kratz, it's nice to hear about a good outcome, thanks.

OK you got me on CRON????

Jim, don't you just love being involved in those!  No one is every happy, wish it was just give the earnest money to the seller, and let it be between just them.  Thanks for the book recommendation, I'm always looking for a good book.

Steve, wow remind me to talk to you about what system you are using, I would love to get my office totally paperless, or close to it.  We were supposed to have been there 10 years ago, what happened? :)

May 29, 2008 06:29 PM
Anonymous
Sheila Reeves

Great article; you're right, good records are the key.

May 30, 2008 03:03 PM
#39
Liz Carter
Liz Carter & Team Realty-Your Real Estate Resource For Life! - Katy, TX
Broker/Owner of Liz Carter & Team Realty, Katy TX (Houston)

Sheila,

Yes they are and I think Top Producer is the best database for that.  Among all the other great things it does.  I need to log on to TREC for the answer about how long, but I'm pretty sure it's forever. Liz

May 31, 2008 12:43 PM
Darleen McCullen
Raleigh, NC
Broker - Raleigh, NC Real Estate

Liz ~ You touched on some very good points. My database has saved me more than once. I say document everything! Some call me the Queen of Documentation, LOL. Great post!

May 31, 2008 01:50 PM
Liz Carter
Liz Carter & Team Realty-Your Real Estate Resource For Life! - Katy, TX
Broker/Owner of Liz Carter & Team Realty, Katy TX (Houston)

Darleen, good for you...be sure to keep it up.  Liz

Jun 01, 2008 10:08 AM
Sondra Meyer:
EXP Realty, LLC - Corpus Christi, TX
See It. Experience It. Live It.

Liz, great post.  I think I'm going to go back and edit the post I wrote last night and link to this one of yours....I've about got my BBQ entry ready to be posted.  Later today hopefully. 

Keep up the great work.   

Jun 03, 2008 01:00 AM
Liz Carter
Liz Carter & Team Realty-Your Real Estate Resource For Life! - Katy, TX
Broker/Owner of Liz Carter & Team Realty, Katy TX (Houston)

Sondra, can't wait to read it...be sure and let me know where it is?  Yes, I wrote mine last night and will be posting shortly.  L

Jun 03, 2008 09:48 AM
Cheri Smith
Prudential Gary Greene, Cypress TX - Cypress, TX
Realtor Prudential Gary Greene

well, I think there should be a statute of limitation on it. I mean come on....someone lives in a house 10 years and then sues?!? That is rediculous.

Jun 03, 2008 10:55 AM
Liz Carter
Liz Carter & Team Realty-Your Real Estate Resource For Life! - Katy, TX
Broker/Owner of Liz Carter & Team Realty, Katy TX (Houston)

Cheri', it's like the lawyer told me..."justice has nothing to do with right and wrong, but is just the law".  Not fair for sure.  Keep good records!  Liz

Jun 03, 2008 12:33 PM
Todd Clark - Retired
eXp Realty LLC - Tigard, OR
Principle Broker Oregon

I try to write down every conversation I have with a person and I add it to my database contact portion. It dates, time stamps it and says exactly what was said and as you said it saved you. I'm hoping to never have to use mine, but I'm prepared if the time should come.

Jun 04, 2008 05:21 PM
Liz Carter
Liz Carter & Team Realty-Your Real Estate Resource For Life! - Katy, TX
Broker/Owner of Liz Carter & Team Realty, Katy TX (Houston)

Todd that's great, and it will save you, but as you said, hopefully that day will never come.  You sleep better at night this way :)

Jun 05, 2008 06:35 PM
Toronto's 2 Hounds Design: Decorating + Staging
2 Hounds Design + Home Staging - Toronto, ON

Liz have I got a story for you!

Unfortunately I can't tell anyone about it for some time. Let's just say a 'stager' who lost a job to me has gone out of her way to cause trouble for me and the owner. I can't even write about it as she is now monitoring my blog here on AR. Thankfully the owner sees what is happening and has supported me and told me about the crap this woman has been trying to cause me.

We have some strick laws on competition here in Canada...I don't think she is aware of them though. Not the route I want to go but...luckily, the AR Gods keep records of everythingtaking place on their servers and our blogs.

And thankfully I can grumble about it here in hiding on your blog! What is it with crybabies? You'd think they'd go off in a corner to be alone...instead they try to make your life miserable.

Jul 11, 2008 02:13 PM
Jim Lee, REALTOR, CRS, ABR
RE/MAX Shoreline - Portsmouth, NH
Buying or Selling? Ann & Jim are the local experts

In my 30 years of practicing real estate I've been sued twice and prevailed both times.

One time was so clearly bogus the judge dismissed my portion of the suit prior to trial.

On the second go round I had lots of pages of documents the buyer had signed relating to "AS IS" that the judge found to be a huge plus in mine and my seller's favor. That case was dismissed also.

There is one other saleable assest that you can exchange for cash in addition to your database and that is an income producing website you can document business from. I've already had offers for mine but it's not for sale.........yet.

Jul 15, 2008 06:01 AM
Liz Carter
Liz Carter & Team Realty-Your Real Estate Resource For Life! - Katy, TX
Broker/Owner of Liz Carter & Team Realty, Katy TX (Houston)

Jim...

Glad to hear you prevailed both times.  Even when you win you loose, because of all the time and emotions that go along with it.  It's such a shame we live in a society that has become so ready to blame someone else for all that happens in life, it's really sad.  Newsweek or Time had an article titled the same as mine and about people not taking responsibility for anything, and wanting to tell everyone else how to live their lives.  It was great, I kept it for a very long time and now cannot find it.  It was so well written and I agreed with everything in the article, had wanted to keep it forever since the Arthur said it so much better than I could ever dream of doing.  One of these days I might try to archive it, but can't remember the year either.

Glad to hear you've had an offer, you must have your business set up very well.  Best of everything this year, would like to hear more from you.  Liz

Jul 15, 2008 04:19 PM