February 2, 2012

Good morning to the best agents on the planet Earth-

This week marks the start of my weekly "Best Practices Email Newsletter." I hope and trust that you will not only enjoy reading these emails, but also include the tips in your daily work. 

I have never liked the "just speak on the topic that I want to talk about" system. Rather, I like the Ann Landers concept of "ask me a good question and I'll offer you a great answer." With that in mind, here are three great questions that I have responded to in the past few weeks. Enjoy.

Question: #1 
Jimmy, I'm representing someone who is interested in leasing/renting a home. Am I required to provide an agency disclosure form?

YES.  The law requires disclosure on a real estate transaction involving the sale or leasing of  real estate-one through four residential dwelling units or a building site for a residential unit.

I bet you didn't know that one did ya?
Question #2 
Jimmy- our client, the seller, has entered into a purchase agreement but has now decided not to sell. The seller has asked me to figure out a way to get him out of the transaction. What is my course of action here? He is a really great guy and I know there will be future business.

We all know of the loop holes and details that may provide a way out for your seller, without liability. BUT you need to resist the urge to provide this type of legal advice. The only "best practice" for a Prudential
agent is to urge your client to speak with an attorney.

Easy words for me to type...a very hard concept to place into practice!
Question #3  
Jim, I need help here- the LLC that I'm a member in wishes to acquire a property in the Grand Rapids area. There are four of us as members. Do I need to disclose the fact that I'm a licensed real estate agent?

YES, the law requires disclosure if a licensed real estate agent acquires property either directly or INDIRECTLY. As a member of the LLC, a limited liability company, it would be viewed as an indirect acquisition. The purchase agreement is a great place to mention this material fact.

The above response also applies to corporations and partnerships if you are a director and/or partner.  If in doubt, consult with your manager.

If you have a question, feel free to email it to me. I'll do my best to send  you in the right direction! Remember, the only thing that ruins a great year is a great law suit!

Go get 'em!


Jim Fase
Prudential Preferred REALTORS