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Contract Caveats Although brokers and salespeople shouldn't personally make changes to contract provisions, they can provide a good check and balance to detect possible contract errors that could sabotage a transaction. Some problem areas that might warrant extra scrutiny include:
For the Broker Never include the commission rate in a preprinted form; it might be perceived as a violation of antitrust laws on price fixing. Also consider including an affirmative statement that all commissions and splits are independently established. Bright Ideas: The Art of Negotiation > |
Keep It Legal Many states prohibit real estate brokers and salespeople from preparing contracts and addenda; only an attorney can do so. Others authorize brokers to prepare simple instruments that entail filling in names, dates, and pricing terms. But some states view the preparation of a sales contract as incidental to the real estate brokerage business and allow brokers and their salespeople to assist in the contracting process. Check with your state association to ensure that you don’t’ overstep your authority. Keep It Ethical Don’t step over the bounds and engage in the practice of law. Article 13 |