With a possible recession on the horizon and the subsequent rise in volatility of the economy realtors are likely to face the increasing number of deals being broken for buyers on the market. The best method to ride through this period is to be well-prepared with the best way to conduct your agent’s business when dealing with these kinds of situations.
Here are five key lessons for agents to keep in mind when something goes wrong in any real estate transaction:
The search for a solution should be your top priority.
There are a lot of uncertainties in the current real estate brokering job, however if two parties could reach an agreement on a single occasion it is likely that the deal will be kept.
Examine the causes that resulted in the break-up. Purchase some time to both of you by prolonging the agreement. In certain situations buyers might consider exploring the possibility of private lending to obtain an immediate loan until the financial situation of the buyer improves. The seller might want to look at the possibility of reducing their home’s value in order to let the transaction begin without a hit from lawsuits.
In less likely cases mutual releases are able to be discussed. The seller may put the property on market to attempt to minimize the loss.
Always seek legal advice prior to offering any suggestion.
What happens if a client threatens to claim damages for what has transpired?
If a real estate transaction occurs, it’s an exciting moment for both buyers and sellers. Because of the uncertain nature of our economic climate However, this excitement is squelched due to unfortunate circumstances, which are occurring often, making the deal void.
In anger, it’s not uncommon to see disappointed buyers and sellers to make threats of suing the agent they hired, even in which the agent has done everything right. These kinds of threats are often false attempts to recoup losses. However, often, the potential plaintiff may reconsider their position when they realize that the retainer cost at least $5,000, with the total amount of charges often more. If the agent is not guilty of fraudulent acts, they will be covered against lawsuits through their Errors & Omissions insurance policy. This ensures that the agent does not be required to cover the cost of their defense lawyer in such situations.
What happens if a client threatens to file a complaint against you with the Real Estate Council of USA?
The most common misconception among purchasers and sellers alike is RECU along with other regulators from provincial governments function as collectors for consumers.
While RECU will look into every complaint against a salesperson or broker, their primary purpose is to determine if the broker or salesperson followed their obligations as stipulated in the REBBA 2002 Code of Ethics to ensure security of the consumer. The regulatory bodies aren’t designed to be in the business to collect damages from agents for the benefit of consumers.
What can I do to prove to RECU that I’ve complied with the rules and regulations?
Documentation is your most trusted friend. Make sure that all paperwork is completed and that you keep the written account of the work you did on behalf of the customer.
This means that you must ensure that the ‘Working With the Realtor is in place, as well as the ‘Buyer
Representation Agreement”, “Listing Agreement as well as any amendments to it along with the Agreement of Purchase and Sale All of them have been thoroughly described and signed, with copies being delivered to the customer. To ensure that you are thorough and avoid confusion It is recommended to be sure to keep written records of the instructions you’ve shared with your customers as well.
Always consult your manager or broker prior to responding to any potential complaint or lawsuit.
The possibility of suing a client for a transaction that went wrong are an option for agents to be faced with, which can be an extremely stressful aspect of the task. If you are faced with an event, it’s recommended to keep your responses and inform the client that even though you understand their frustrations or disappointment, you’ll contact them when you’ve had the chance to go through their files. Following that discussion take a moment to discuss the situation with your boss or lawyer to determine what your next step is.
