Having a high attention to detail when it comes to contracts is one of the most important things we can do as agents. I believe that we are fortunate that we can negotiate deals between sellers and buyers by using a contract of sale. Other states around Australia have solicitors complete these tasks which take much longer and leaves the door open for sellers and buyers to change their mind before they get to sign and then you are back looking for another deal.
As a marker and assessor at Validum Institute, I often see when marking assessments on contracts of sale simple errors from students. Today I am going to address 3 simple errors and why they are so important to get right.
Example: ‘Peter and Julie Smith’ – This doesn’t identify Peter as having the last name of Smith, in the seller’s section of the contract, there is a place for 2 names to be entered. Peter Smith would one of those names and Julie Smith would be the other name. When the solicitor doesn’t accept Peter and Julie Smith as the buyers, you are left to start a new contract with the buyers and the sellers, the cooling off period starts again, all clauses would be reset unless altered on the new contract and more importantly it gives both parties the chance to walk away from the deal and if it’s the buyers or the sellers are not going to be happy that you have lost the deal for them.
Example: One of the assessments uses a street called ‘Donavan’, I have seen it spelt by students on the contract ‘Donovan’ ‘Donavon’. Additionally, the seller’s name is ‘Smithers’ and I have seen it spelt by students on the contract ‘Smither’ many times.
If this was a real contract in real time, you don’t have a contract! The solicitors cannot proceed, they cannot make a change even if it is an obvious error. The contract will need to be cancelled incurring more costs to your sellers and buyers and it also gives them the chance to not proceed with the deal. Furthermore, this leads to a large amount of time from yourself – time you could be spending closing another deal.
Make sure your get the RP, BUP, GTP number of the property correct. It can only be 1 number in the wrong place, or in the wrong order and the consequences are high again. It means that the contract cannot proceed and must be cancelled and started again. This as I’ve already said results in increased valuable time on your behalf, additional buyer and seller costs and the potential for a contract to fall through
It is important to ensure your paperwork is completed accurately. Hopefully, you will see the importance of making your paperwork correct. It is part of being a professional agent. Having correct paperwork is a good start to keeping your buyers and sellers happy and give you raving reviews which will hopefully help with your next listing.
It’s a great industry, make sure you are the best you can be.
Stephen McCann has forged his reputation and career in real estate since 2009. He currently works at LJ Hooker Southport and in his ‘spare’ time is a trainer and assessor at Validum Institute.
Stephen strives to take every advantage in the marketplace for homeowners looking to leverage the value of their home when it comes time to sell and offer buyers the safeguard of a trusted franchise that can help them purchase their next home.
In an industry that is often transaction-driven, Stephen McCann offers service that remains discreet and client-focused, one-on-one, face-to-face, he understands that you and your aspirations are unique and very personal.