With a possible recession on the horizon and the consequent growth in the volatility of the economy realtors are likely to face an increase in deal-breaking for buyers on the market. The best way to get out this trough is to know the best way to conduct your agency’s work when dealing with these kinds of situations.
Here are five key lessons for agents to keep in mind when things go wrong with any real estate transaction:
1. Finding a solution must be your top priority.
There are a lot of uncertainties in the current real estate brokering business, but, if two parties could agree on terms once it is likely that the deal will be kept.
Examine the causes that caused the deal-breaker. Purchase some time to both of you by extenuating the contract. In certain situations buyers might consider exploring the option of private lending to obtain an immediate loan until the financial situation of the buyer improves. The seller might want to look at cutting down on their home’s price in order to let the transaction be completed without interruption by legal proceedings.
In less favourable situations mutual releases may be discussed. The seller may put the property on market in order to reduce the loss.
Always consult a lawyer prior to offering any suggestion.
2. What happens if a client threatens to claim damages for what has transpired?
When a real estate purchase is completed, it’s a thrilling occasion for both buyers as well as sellers. Because of the uncertain nature of our economic climate However, this excitement is squelched due to unforeseen circumstances, which are occurring often, making the deal unfinished.
In anger, it’s not uncommon to see disappointed buyers and sellers to file a lawsuit against the agent they hired, even in instances when the agent was right. These types of threats are usually false attempts to recoup losses. However, often the potential plaintiff may reconsider their position when they realize that the retainer will cost them at least $5,000, with the total amount of the fees usually being higher. If an agent hasn’t committed any frauds, the agent is secured against lawsuits through their Errors & Omissions insurance policy. This insurance coverage ensures that the agent does not be required to pay for their defense lawyer in such situations.
3. What happens if the customer threatens to file a complaint against you with the Real Estate Council of United State?
One common misconception shared by both sellers and buyers is RECU along with other regulators from provincial governments function as collecting agencies for consumers.
While RECO will look into every complaint against a salesperson or broker, their primary purpose is to determine if the broker or salesperson followed their obligations under the REBBA 2002 Code of Ethics to ensure security of the consumer. They are not designed to be in the business to collect damages from agents for the benefit of consumers.
4. What can I do to prove to RECU that I’ve followed my terms of service?
Documentation is your greatest ally. Make sure all paperwork is completed and that you keep the written document of your interactions on behalf of the customer.
This means that you must ensure that the ‘Working With an agent”, “Buyer
Representation Agreement”, “Listing Agreement as well as any amendments to it as well as the Agreement of Purchase and Sale are all carefully described and signed, with copies being delivered to the customer. To ensure that you are thorough and avoid confusion It is recommended to keep a written record of the instructions you’ve shared with your clients .
5. 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 confront, which is one of the most frustrating aspects of the task. In the event of circumstances, it’s best to hold back any responses and inform the client that even though you sympathize with their feelings or disappointment, you’ll follow up when you’ve had the chance to look over their case. Following that discussion take a moment to discuss the situation with your boss or lawyer to determine what the next steps should be.