A few weeks ago I listened to an Attorney discuss tips to avoid legal problems. Here are the 14 tips to help you avoid legal problems from Spile, Leff and Goor LLP.
1. All parties in a transaction need to sign all paperwork. So if you send out a counter offer, make sure the purchase contract is signed at the same time as the counter offer. As the listing agent, you should not wait until the counter offer is signed by all parties to get the seller to sign the original offer.
2. Complete the AVID thoroughly however only state what you see, not what you believe to be the cause of the issue you point out. Do not use adjectives such as excellent, good, etc. If you see a stain you cannot say water stain. Cannot say hairline crack. Only state what you see: Ex, stain, crack.
3. Whether you are on the listing side or selling side, you need to check that the seller has completely filled out all disclosure forms. If something is missed, it needs to be returned to the seller to completely fill out.
4. You should confirm everything of significance in writing!! Any verbal agreements should always have an email confirmation.
5. As soon as you are aware of a problem that involves the broker or management, discuss with your broker or management as soon as possible.
6. You don't have to work with every seller or buyer. If there are any red flags up front, speak with your broker to decide whether you should get involved with the client.
7. You should never advise potential buyers what they can do with a property in regards to expansion, remodeling, etc. Never state in the MLS that the property can be turned into 16 units. There should be something in writing advising the buyer to do his own investigations during the inspection period as to what can be done with the property.
8. Pay close attention to time frames such as contingency removal and Notice to Performs. Make sure to know what the RPA says about days. For example contingency date can only be on a business day so if it falls on Saturday or Sunday, the contingency will then be pushed until Monday.
9. Do not give legal advice, tax advice, construction advice etc. Your scope of duties is only being the real estate agent.
10. After COE many buyers may want to make changes to the home. Advise them in writing to check with all governmental entities and with the contractors during their investigation contingency period to make sure they will be able to do what they want with the home after closing.
11. Make sure vendors have errors and omissions insurance, properly licensed or certified for the service they provide.
12. Communication helps avoid legal issues so be sure to stay in constant communication with your clients.
13. Advise landlords not to give tenants a first right of refusal to purchase the home.
14. Do not cold call unless you know the Do Not Call laws and policies.
And there you have it. 14 tips to help you avoid legal problems from Spile, Leff and Goor LLP. One of the main focuses of having a transaction coordinator is to assist the realtor and broker in reducing your liability.
Leave a comment or let me know if you have any questions.
1. All parties in a transaction need to sign all paperwork. So if you send out a counter offer, make sure the purchase contract is signed at the same time as the counter offer. As the listing agent, you should not wait until the counter offer is signed by all parties to get the seller to sign the original offer.
2. Complete the AVID thoroughly however only state what you see, not what you believe to be the cause of the issue you point out. Do not use adjectives such as excellent, good, etc. If you see a stain you cannot say water stain. Cannot say hairline crack. Only state what you see: Ex, stain, crack.
3. Whether you are on the listing side or selling side, you need to check that the seller has completely filled out all disclosure forms. If something is missed, it needs to be returned to the seller to completely fill out.
4. You should confirm everything of significance in writing!! Any verbal agreements should always have an email confirmation.
5. As soon as you are aware of a problem that involves the broker or management, discuss with your broker or management as soon as possible.
6. You don't have to work with every seller or buyer. If there are any red flags up front, speak with your broker to decide whether you should get involved with the client.
7. You should never advise potential buyers what they can do with a property in regards to expansion, remodeling, etc. Never state in the MLS that the property can be turned into 16 units. There should be something in writing advising the buyer to do his own investigations during the inspection period as to what can be done with the property.
8. Pay close attention to time frames such as contingency removal and Notice to Performs. Make sure to know what the RPA says about days. For example contingency date can only be on a business day so if it falls on Saturday or Sunday, the contingency will then be pushed until Monday.
9. Do not give legal advice, tax advice, construction advice etc. Your scope of duties is only being the real estate agent.
10. After COE many buyers may want to make changes to the home. Advise them in writing to check with all governmental entities and with the contractors during their investigation contingency period to make sure they will be able to do what they want with the home after closing.
11. Make sure vendors have errors and omissions insurance, properly licensed or certified for the service they provide.
12. Communication helps avoid legal issues so be sure to stay in constant communication with your clients.
13. Advise landlords not to give tenants a first right of refusal to purchase the home.
14. Do not cold call unless you know the Do Not Call laws and policies.
And there you have it. 14 tips to help you avoid legal problems from Spile, Leff and Goor LLP. One of the main focuses of having a transaction coordinator is to assist the realtor and broker in reducing your liability.
Leave a comment or let me know if you have any questions.