|Watch what you do and say as a Commercial Realtor.|
Any a commercial real estate transaction involving sales, leasing, or property management is likely to be complex and protracted. On that basis there is a real requirement to be detailed and accurate in your dealings with all people. Many a salesperson has come 'unstuck' through poor documentation and the recall of key events. Here are some tips from our Newsletter this week.
Watch Out for the Legal Process!It is a known fact that people like to sue the real estate agents that they are involved with when something goes wrong. Certainly the legal process is there to protect parties that experience error, negligence, or damage. That being said, many a solicitor will suitably prime their client to pursue the agent and the professional Indemnity Insurance that the agent will normally have available in times of dispute.
Set Some RulesSo here are some rules that will help your business processes as you work as a commercial real estate agent.
- The results of any critical conversation or negotiation should be noted into written form and placed on file. It is remarkable how important these notes become when people enter into dispute and legal activity.
- If any party or person issues you with verbal instructions it is essential that you acknowledge those instructions in writing or via email prior to taking action.
- Do not take any action if it is in breach of any local laws or legislation. When it comes to property and particularly commercial property, there are laws that specifically apply to the sales and leasing process. Your awareness of those laws should be maintained and updated as required.
- When listing a property take the time to fully investigate the factors that relate to property ownership and property function. Many property owners will deliberately withhold information that they believe could negatively impact the sale or lease. That will in turn impact the negotiation on the property when the time comes.
- Remember who your client is in the transaction. It is very easy to closely relate to the other third party in the transaction and hence neglect the client agent relationship that you have under the legal listing documentation. The client pays your commission and requires your commitment to total service whilst adhering to the instructions outlined in the listing documentation.
- When it comes to selling and leasing commercial property is very easy to say something that is incorrect or not thoroughly researched. The golden rule should be that comments are not made until information is correct or verified. When in doubt, seek more information before response.
The longer you spend in the industry the more likely it is that you will be the subject of or involved in a dispute and disagreement between parties. The only thing that can support you will be the documentation you made at the time of the events.
Need some more ideas to help your career in commercial real estate? Sign up for our Newsletter here.