Date of Execution | Certified Funds with Lease | Conversation Logs | No Verbal Agreements – A Michael Clapp Dagnabbit

There have been a few other issues this week that I’d like to cover:

  1. If a form has a date of execution (next to where a client signs) it need to be dated or the document will be returned.
  2. If you’re working on a lease, I would encourage you to put language in Special Provisions about how the first month’s rent must be in certified funds and payable to the listing brokerage – all future payments are to be remitted to the landlord.
  3. Conversation logs are really important.  Your memory fades as the transaction progresses.  I’ve been dealing with a transaction where it is really important to know what happened on which date and the agent is trying to “remember”. If notes had been taken in the file it would be much easier and strengthen our position.
  4. A deal is never a “done deal” until all of the documents are received, signed by all parties, and delivered back to all parties.  There are NO verbal agreements.  We’ve been having some recent issues with clients “changing their minds” after coming to a verbal agreement.  Once docs are presented they’re refusing to sign – that doesn’t feel good.  Please make sure that all parties know that until the other party signs off – they really don’t have a completed deal.

Buyer Tenant Representation Agreement and an Intermediary – A Michael Clapp DOUBLE Dagnabbit

I have repeatedly made the statement that a written BUYER/TENANT REPRESENTATION AGREEMENT is required when you’re in an INTERMEDIARY.  Here is the definition of INTERMEDIARY:

  1. You have the buyer and the seller. 
  2. You have the buyer and the other agent at KW Woodlands, KW Northeast or KW Professionals has the seller.
  3. You have the seller and the other agent at KW Woodlands, KW Northeast, or KW Professionals has the buyer.

No, the Notice of Intermediary alone is NOT sufficient.  The first sentence
in that form says “as previously agreed in writing”.  The only previous place
clients agree in writing is in the listing agreement or a BUYERS REPRESENTATION AGREEMENT.

We just launched this summer a simple 2 page agreement for you to use and
it is on the office intranet, in ZipForms and in MyTransactions.  There are
NO excuses.

Now, if you turn in a deal and it is intermediary and you don’t have a written
Buyers Rep Agreement  - Compliance and the MCA have my permission to hold your commission until one is presented.  Don’t be mad and them – be mad at the Texas Real Estate Commission and your Legislature.  Neither they (Compliance or the MCA) nor I write the LAW.