This past week, I had a meeting with a potential client about listing his property. He is in no particular hurry to sell, but he knows that I have a buyer for his unique property. A very serious buyer.
We met to sign the exclusive brokerage contract. We fill in all of the details, as previously negotiated and agreed to. In the section of the contract on Other Conditions and Declarations, I include the clause that is now supposed to be standard in Quebec real estate:
This is not an offer or promise to sell that could bind the seller to the buyer, but an invitation to submit such offers or promises.
This clause now appears on all MLS listings in Quebec, and we’ve been advised to put it into our brokerage contracts too. It is based on a recent case whereby the court decided that, even when an offer comes in that meets all of the criteria set out by the seller, the seller is not bound to sell the property to the buyer.
My client is happy. He likes the disclaimer and the new jurisprudence. It gives him an out…sort of.  But this does not affect my commission, I tell him.  Should I come through with an offer that meets your price and conditions as set out in the brokerage contract, I am entitled to my commission because the courts have determined that in such cases, the broker has fulfilled her contractual obligations and, as such, is entitled to her compensation as laid out in our contract.Â
Avoiding disaster means tediously reading the maps.
Oh. Wait a minute. He needs some time to think.Â
So he’s thinking…and I’m waiting patiently.
No matter what happens, though, I am so glad that I’m a stickler — and take the time to read and explain every clause of every contract to my clients, as boring and tedious as this is each time.Â
And I’m glad that I’m still fresh enough out of real estate school to remember what the contracts actually mean.
And that I’m a fraidy-cat — or aware enough of the risks and liabilities involved in selling real estate that I actually read the communiqués put out ad nauseum by our governing association.
Sometimes being a green, stickler-ish fraidy cat is good, no? It can be tedious in the short-term, but it sure saves aggravation and liability in the long-term.
NOTE: I am not a lawyer, and this post is not meant to constitute legal advice. Should you require legal advice relating to real estate, please contact a real estate attorney, or feel free to contact me and I’ll put you in touch with one.
Nothing will doom a transaction and sentence a well-meaning Real Estate agent to a court date faster than lack of communication. Attention to detail should be a given in this industry, and concise explanation and re-explanation … in writing … in blood … is vital to the decision making process of all parties involved. You may be a relatively newer agent, but if you already understand this critical component of transaction management, you are most certainly not “green.”
Paul, it’s the stickler in me and the fact that I don’t like to get into trouble. As a child, I was afraid of my parents’ disapproval. As an adult, it’s the courts and angry clients that worry me : ) More importantly, I’m dealing with what is often a client’s biggest asset. The least I can do is pay attention to detail in the process.