How Do I Stay Out of the Lawyer's Office?
Question: “Can anything block my views?”
Question: “How good are the schools in this neighborhood?”
Question: “Can I put a basketball hoop in the driveway?”
Question: “Are they going to widen the road accessing the development?”
Question: “How do I stay out of the lawyer’s office?”
The last question should be from you, the licensee, to me, the lawyer. I have been defending real estate brokerages and agents since 1999. And, trust me, I am a blessed in doing so. Most of all because I love what I do and who I work with. But, also because... and hate to say it, agents and brokerages will pay for my kids’ college education because they fail miserably in answering these questions.
In the sixteen, going on seventeen years, I have been working with agents, one thing has never changed… most lawsuits can be avoided through a two-step process. Now, to be clear, over 90% of our lawsuit come from buyers – meaning it is usually buyers that file a lawsuit after acquiring a property and discovering defects or issues with it. So, this two-step process is directed at Buyers’ Agents.
Step one: Listen to and identify important inquiries from your clients. Your clients will tell you what is important and material to them. Each of the first four questions above are perfect examples. The client has indicated something meaningful to them in the buying process: view, schools, basketball hoops, access. When a client does this, notes this and/or screams it from the roof tops, our ears need to perk up. This is the GRAVY for them. So, step one is identify what is MATERIAL to the client.
Step two: Memorialize these communications and, more importantly, the WHO, WHEN and HOW. Each of the questions above were at the root of actual lawsuits filed against licensees. And, in each instance, the licensee failed to document that conversation and who, when and how the question would be answered. Let me show you how each question should have been memorialized and done so in WRITING.
Question: “Can anything block my views?”
Response (later that day or the next): It was great looking at properties with you today and I am excited to present the offer on 123 E. Memorialize Rd. As a follow up, you were interested in the property to the north and protecting views for the home. You are going to check with the HOA and the city to verify building restrictions and the like. You will need to do so during the inspection period. Let me know what assistance I can provide.”
Question: “How good are the schools in this neighborhood?”
Response: It was great looking at properties with you today and I am excited to present the offer on 123 E. Memorialize Rd. As a follow up, you were interested in the schools in the neighborhood. You are going to follow up with the local school district to make certain you are fully satisfied with the feeding school and district overall. You will need to do so during the inspection period. Let me know what assistance I can provide.”
Question: “Can I put a basketball hoop in the driveway?”
Response: …. “you will review the CC&Rs…”
Question: “Are they going to widen the road accessing the development?”
Response: …. “you will inquire of the HOA…”
The bottom line is that a licensee needs to memorialize these important conversations and identify the WHO, WHEN and HOW. And, perhaps more importantly, it is always preferable for the licensee to be the source or the source, but, NEVER the source. In other words, the licensee should direct the client as to where THEY can obtain information to answer their questions, but not do it for them.
Your clients will tell you what is important to them. Listen, pay attention and have your antennas up – that will keep you out of the Lawyer’s (my) office!!!!
By Dax Watson Managing Partner Lipson, Neilson, Cole, Seltzer, & Garin, PC