Developing best practices and incorporating the recommendations outlined below into your daily real estate business will significantly reduce your liability and help manage the risk of potential litigation as well as complaints filed with the department of real estate or your local REALTOR Association.
- Develop and use standard procedures for everyone. Review fair housing rules and treat all prospects, customers, and clients honestly, fairly and equally.
- Keep a communication log during your transaction. Record your notes, conversations, milestones. If red flags are raised during the transaction or you encounter challenges, it is particularly important to record the facts and events. If you are using a paperless transaction management system, scan and upload all of your notes, emails, and correspondence for your transactions.
- Use email to confirm conversations, verbal agreements, proof of delivering copies of contracts and addenda. If your clients don’t use email, then mail copies of all the contracts and documents they sign via certified or registered mail or us an overnight service like FedEx.
- Keep a record of your transaction…including all paperwork, emails, and correspondence. Create a file on your computer and your email to organize your correspondence and documents. Scan your emails and store them online, on a backup device and/or in a paper file.
- Rule of 3 – always recommend three vendors, contractors, attorneys, lenders, home inspectors, home warranty companies, etc. Consider creating a disclosure with the companies and service providers you recommend and having your clients sign and acknowledge the choices you presented.
- Always recommend and encourage your clients to obtain a home inspection and a home warranty. Get a written waiver if they choose not to.
- Disclose…Don’t Diagnose. Be the source of the source.
- Educate & set the proper expectations with your clients and customers… for example:
- Explain the short sale process; the pros and cons of purchasing a short sale
- Review Earnest Money and what happens with a canceled sale
- Conduct a seller and buyer interview/qualification with all clients
- Use a checklist to stay on top of all the tasks in a real estate transaction. Include any due diligence and contingency deadlines.
- Communicate. Communicate. Communicate. Often and with all parties to the transaction! Return phone calls and emails promptly.
At Home Connect America: THE Home for Teams, we see YOU as a small business owner. Home Connect America was created to help professionals like you build a successful real estate team. Our purpose is to help you seamlessly connect your business, your life, and your community so that you realize your ultimate goals and dreams. Our ultimate goal is to provide you with freedom. Everyone has a different objective and we believe that you should have the freedom to achieve what you want. We’ll be there to help you reach whatever that looks like for you. We make it happen with specialized coaching, training, and business systems designed to show you how to operate a successful business focused on providing excellent service and results.
Contact Jan O’Brien for a confidential interview to learn more about our proprietary training and coaching programs, team systems and software. Call or text Jan at 702-858-9191.