“Think like a wise man, but communicate in the language of the people.” – Wm. B. Yates (1865-1939)
So, let me see, I’ve written about coaching and mentoring from every which way to sundown. The commentary about needing an ombudsman and ethics, along with how to survive in this economy, drew overwhelming responses by email and in REM’s online forum.
This month I thought, by way of a weird process of events, to draw our attention to contracts.
Contracts between brokerages and the public are taken for granted too much. It is especially important in these times to understand and be totally comprehensive about what you are signing and what you are asking your clients to sign. In the Toronto board, as well as others, I would safely presume that every clause is on the board’s web page in plain English for you to print out and leave with your clients for their own perusal.
In Ontario, RECO requires the agent to read the clauses to the client as they go through the Agreement of Purchase and Sale. The same due diligence is the agent’s obligation to read the Listing Agreement. I realize that it takes time to do all this, but if agents would sit down with their clients and read out loud the salient points of the contracts, including Buyer Agency contracts and FINTRAC documents as well, then we brokers and managers would not be plagued with complaints we receive from time to time.
You are in a business. Treat it like a business.
Many times brokers like me have taken lawyers to task for telling their clients to have the agreements reviewed – many call them “deal busters.” I’m sure many of you agree, but you know, in retrospect, that you are in a position of trust, and if you have an offer that has multi faceted conditions, it may be a good idea to insert a clause that requires the solicitor’s approval for maybe 24 hours. In the hot market that we had for the past several years, this was not plausible. Now it is.
With so much litigation taking place in the Canadian market, and I see a great many cases thrown at me via the Internet, it pays to err on the side of caution, rather than to go in with all guns blazing.
Last week, I interviewed a young agent who had his broker’s licence as well, and I asked him about his background and motivation to get into the business. He told me he had a contract with his present broker, but didn’t know what the penalty was, if any, for leaving before his contract was up. “I don’t know,” he said. “I just signed up when another friend brought me and never bothered to look at the contract.” I asked him if he leased his car, the answer was yes. Had he read that contract? No.
Due diligence is the credo to live by. Read all the contracts and you will never be in trouble.
At least, that’s the way I see it from my desk this month.
Stan Albert is celebrating his 39th year in active real estate, and is with Re/Max Excellence in Woodbridge, Ont. He serves on committees at RECO and at the Toronto Real Estate Board. He is an established trainer and business consultant and can be reached at salbert@trebnet.com.
Stan Albert, ABR, ASA is a consultant with Re/Max Premier in Vaughan, Ont. He can be reached for consultation by email. Stan is now celebrating his 45th year as an active real estate professional.
