I thought it would be apropos to initiate my BLOG with the simple topic of documentation. Although only 25% of the readers out there generally enjoy the idea (I'm talking to you analytical people), I can't overstress the importance of documenting details of the transaction.
Recently, I found myself involved in two separate situations where just knowing that I had the documentation helped me to (get a little) sleep at night. As we ease through a more difficult real estate market than many have been use to, anxiety and pressures increase for all parties involved.
Fortunately, real estate offers practitioners the benefit of working with people during an exciting time in their lives ... in fact, many agents have left corporate positions to eliminate the day to day bureaucracy surrounding them at a traditional job.
So, without burdening you with the details of my experiences, I'll mention that I did ask my broker / owner how to diplomatically manage the process to protect myself, my client and other parties throughout the sale. After all, the best part of a real estate deal (99.9% of the time) is that everyone involved wants the same result - a successful closing.
So here is my simple thought (as shared by my broker) ... if the item fits any of the following: term of agreement, holds dollar value, is of any concern to any party involved, email or send a note confirming your understanding of the discussion and ask for confirmation. I believe that this simple step can help prevent an assumption or misunderstanding from going past a point of regret.
At first this may appear to be a "cover your back" approach, in many ways, it clearly is. However, I think that this can also be done to help protect your client and other parties in the deal. In other words, encourage your parties to the deal to "send you a quick note" on the idea, or "follow-up with a bullet list, to be sure you didn't miss anything."
Last, if you've run into an obstacle or issue (no matter how small), reevaluate your systems. Should a checklist or form be in place? For example, I recently closed on a property with a use and occupancy agreement (included in the purchase and sale). However, the seller's attorney never explained the dates to her. As a result, I have created a "Critical Dates" form. Just a simple form that easily identifies every date from the home inspection, to the water reading, to the closing. Dates are now clearly documented and clients will remain informed and comfortable with the process.
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