News & Information: Risk Management Resource

Up To Dates

Thursday, April 24, 2014  
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By Cindy DeCoster

As REALTORS®, we all work towards a successful closing with every offer we submit and contract that we execute. Being prepared and fully informing each party of every detail is essential to achieving that successful transaction. Here are a few tips that have always proven to be helpful.

  • Send a copy of the final executed copy to all parties. All parties include: buyer’s agent, seller’s agent, and title company and lender, if there is one. When the last party signs AND sending everyone a copy of the “executed” contract constitutes the “effective date.” Making sure everyone is aware of that date is essential.
  • Create a worksheet that includes the dates for the parts of the contract that are calculated from the effective date. Those parts include: escrow deposit, inspection period, loan application, and loan commitment, when applicable, title evidence/insurance, survey, and even the closing date at times. Keeping everyone on the same page from the beginning, of these dates, sets clear expectations. That will help to eliminate room for misunderstanding or miscalculation in the face of one party exercising their right to cancel through one of the exit clauses of the contract.
  • Be sure to communicate with all parties when dates are met and items are satisfied on the contract. Some key items to clearly communicate when they are completed (or satisfied) include, but are not limited to: escrow receipt, inspection periods, loan commitments when applicable, and title evidence/insurance.

Communication is essential to a successful transaction. With that said, being successful in a transaction does not always constitute a closing. A successful transaction, in my opinion, is executing our client’s wishes through the sales contract. Allowing them to exercise their right to stay “glued” in the contract or “parachute” out of the contract through one of the many exit clauses are some of the reasons they hired us to be their real estate professional.

Always remember the client’s best interest is our priority. Successfully navigating them through their real estate transaction is what we do. Knowing your dates helps keep everyone working from the same set of expectations. Please remember, contracts close but clients are forever. Take care of the clients and they will take care of you.

Cindy DeCoster, Prudential Results Realty, is a member of the ORRA Risk Management Subcommittee.

ORRA frequently schedules classes, workshops, and online offerings related to risk management. Check the ORRA Calendar often, as new classes are continually being added to the education lineup.

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