Reviewing Contract with Clients a MUST- All right, we’re reviewing contracts with a client is a must want to send it and DocuSign, they can read it, it’s their responsibility. Well, kind of, but not really, Shana. So we’re real estate brokers and we hold her. There’s a problem and you’re to blame. All right. So, chat in now, all of the other covenants or what are they like, five custodies or care due diligence? Oh, part of our code. The other code of ethics, chat and all those.
Now, if you happen to know it’s a test on the spot. I’ll see if I remember care, responsibility, honesty and integrity and loyalty. Fidelity, I don’t know. Is fidelity a thing? It’s a title company. I don’t even know. Just be a good person. Do the right thing. Be an old car. Old car. OK, that’s good. All right. So the contract changes that are coming up.
Yes. So we know there’s contract changes coming up. We’ve talked about them. And I know Stacey has mentioned to she actually took a class I think it was the title company held it and an attorney conducted the class. But it’s really good to really hear not just from myself or Mike or Stacy, but if you have an opportunity to take one of these classes and courses, do it because, you know, you can hear different perspectives on things that might really speak to you. And you grasp what you know, what you should do. -Reviewing Contract with Clients-
Reviewing Contract with Clients
And hearing it more and more often, you’re going to you know, you’re going to absorb it. But I think we need to talk about some of the things where you can actually it could create a little bit more liability for you as an agent. Yeah, I don’t want more liability. All these things have changed. For example, we have, you know, the way addendum. You need to know if there are transfer fees and, you know, there’s transfer fees and now there’s a capital improvement fee that a lot of the highways are implementing.
So you’re hit hard with that at closing. And it’s like, wait a minute, what is that? I thought there was just a resale certificate and you put in there a hundred dollars. That’s kind of what we put in there before. Like, if you’re going to transfer the resale certain or you’re going to transfer from one buyer to the or from the seller to the new buyer.
You know, we’ve typically put in there that transfer fee would be they would pay up to one hundred dollars a seller, pay the rest. Well, we need to know what those fees are because everything’s changing. There’s different types of fees involved. So you need to know these things in advance. When you’re listing a home and when you have a buyer, you need to reach out. If it belongs to Amanda. I’m just using this as an example. This mandatory way, reach out and know what these things are, because the typical is not a typical anymore. -Reviewing Contract with Clients-
The fees have changed. Everything’s changed. So know all of these things, I would say go back to basics in the contract, go through it, know it, understand it, and then be able to present that and discuss that with your client and cover all the bases and then you can send it to them.
Most people just click through and sign and don’t really pay attention to it. Maybe something catches their eye sometimes and they’ll reach out and ask you a question on it. But I would say the majority of people trust you as their real estate professional. That’s true statement. And they just go with it. They sign it. I can’t tell you how many times I sent a doc. You sign and it’s back literally within a minute. There’s no way they could have read it.
Well, so let me make this point for you, agents. Right. It’s important because if you get that wrong and the number is higher or the client’s upset and whatever it is, and then you come to us, you know, like, hey, I have a problem, I didn’t fully inform the client about this and not even number is higher and I have to pay for it. Meaning you. Right. So just think about that one. That’s where it ultimately rolls down to is because you didn’t do your job. We’re going to have a conversation. Who like who should pay for that?
Yeah, I don’t know. So, you know, it’s important and you’re stuck in that position, you’ve got to do something to mitigate what you know.
Yeah, what you see, it’s kind of like a freight train, right? Yeah. Yeah. It’s like a Tommy gun pointed at four feet.
It is the lease’s. You know, there’s a new section in the contract about leases. And if you have solar panels and that lease and all these different lease types, are these the ones coming out in like May, huh?
May changes. But you want to start to become familiar with this? Yes. Take a class, get trained.
And and if you don’t understand a certain aspect of it, of anything in the contract, please let’s discuss those in our meetings. Reach out. You know, we’re here, we’re available. You can talk to Stacy about it. But, you know, it’s really important. I know we preach this a lot, but no, the contract and know what you’re having people sign. It’s a legal binding document, you guys.
All right. So time for honesty, chat in now, if you’ve actually read the entire real estate contract from start to finish within the last maybe year or, you know, all the changes that are updated in your you’re actually competition changes or to actually competent in the full contract.
Right. The one that you use all the day in the in the addendums.
And I’ll tell you guys, there’s times where, you know, Stacy and I will discuss something we’re like on the phone and yeah. This person oh, sorry. This person is saying we didn’t do this or that and we have to go back to the contract to just kind of, OK, let’s reread this again and make sure that we’re correct.
So no matter how long you’ve been doing this, sometimes you do get put in a position where you might second guess and it’s good to discuss it. And how does this really, you know, what does this really mean? And so, yeah, just stay on top of that contract and know that you should you should review it and reread it.
I don’t know often. And we’ve done a couple of different topics on this to interlink it in the recent past related to the contract changes that were coming up. So you can check that and follow some links to the other items. Right. We have them in our wiki. You can search it for other topics related to this. And hopefully that’s some good learning for you and good preparation. But honestly, if you can’t say that you’ve read the contract recently, it’s not that long. It’s like sit down. It’s can’t stop, won’t stop one day, maybe grab a coffee this morning and sit by the fire exits. It’s a little bit cold and go ahead.
Yeah. And different sections, you know, read a couple of paragraphs and fully think about it and put yourself in a position like what does this truly mean? And then move on to the next thing you know you’re not trying to memorize. You need to know what it is and what it means.
Yeah, like print it out and grab a pen. Imagine that.
And actually just like, fill it out yourself, like, oh, this is why it goes here and this is what goes on and this is who gets right. And just like be totally familiar with it just every once in a while. Yeah. In today’s the day after you get done with it, take a picture of it and send it to me just like, hey, I actually reviewed the contract today and here is me sitting here doing that.
Yeah. And better yet, since, you know, when you send that to Mike, just make a note like, hey, and and in your words, explain what a certain paragraph means. Right, don’t interpret it. I’ll take it, yeah, and you’ll be even better today than you were yesterday, I promise. They’re good at the ball.
Reviewing Contract with Clients