There is an excellent rule in real estate cautioning all real estate personnel to get all the paperwork signed before working. If you have the paper signed you have PROTECTION--There is wisdom in this, however, there are times when you need to throw caution to the wind (get crazy) and break the rules.
When we had a commercial real estate practice on the Westside of Los Angeles, a inuiry call came in as a result of an office building listing we had, located on a great street that was changing. The architect who called me had a dream:
Find a piece of land that would accommodate a 25,000 square foot building on that same street, which he would design to his specs. The owner of the land would be willing to do a build to suit. He could then lease it the his growing architectural firm, and work out a deal to buy the building in 5-10 years. He had a magnificent portfolio of buildings and shopping malls he had designed around the world.
We knew of a parcel of land that would accommodate a building this size. At one time, it had been listed by two agents we liked and trusted, and we were not sure if they still had the listing.
Ron called them, and they no longer had the listing, because the owner who was also a builder was considering a build to suit, and had permits for a 25,000 square foot office building. Heavenly trumpets blared, and angelic harps played the moment we heard this!
We set up a meeting with all parties that afternoon...(go ahead and groan when I tell you that there was no paperwork signed with listing or representation!) And yes, we all knew the horrors of putting principals together. But the angels kept singing, Hallelujah! Everyone got along like old friends!
That day we wrote up the deal at the conference table of the owner, which included commissions to both brokerages. Everyone signed. The next day, leases were generated and approved by legal entities on both sides with minor revisions. And we were all paid the first half of the commission and the remainder would be paid, upon the issuance of the certificate of occupancy for the building.
Six months later we were paid the second half. Everyone was very pleased with the results, and referrals flowed to both sides of the deal...Sometimes, it pays to break the rules when trust is solid and purposes are aligned, and the individuals are honorable. It was the right kind of crazy! It was a deal made in heaven and all parties were in heaven with the results.
This is our entry in the December Challenge authored by both Anna Banana Kruchten CRB, CRS and Carol Williams . Thank you both for this creative idea!