So often I hear of a real estate agent that negotiates a deal (sales or leasing), and then they fail to follow through with the sale settlement or lease finalisation thinking that others are doing that ‘mundane work’ on the part of the client. Just how wrong could they be?
A sale or leasing transaction doesn’t just happen; if you negotiate a deal on the part of the client, it is essential that you stay with the transaction to the very end. Ensure that the parties to the transaction are progressively completing their parts of the contract or lease (as agreed and documented), and watch all events to ensure that the property solicitors or attorneys are keeping things moving.
In any negotiated property transaction there will be things to track and push together such as:
- Monies to be paid in accordance with agreements
- Documents to be signed
- Specific performance of tasks by the client or other party
- Critical dates for actions to occur
- Agreements to be reached
- Due diligence
- Documentary evidence
- Subject to provisions of any sale or lease
In most cases these things require a degree of pushing along by the agent or broker. I have found that property solicitors and attorneys have many other agendas and priorities, and they cannot be fully relied on to keep the deal moving ahead. Whilst they may work for your client in bringing the sale or lease to finality, their priorities in doing so vary greatly day by day. Your transaction can soon be ‘priority 8’ in a list of 25 things.
I have found that the best way to stay with a property transaction as it moves ahead is to use a checklist approach (separate checklists for sales, leasing, and property management), coupled with full correspondence and documentary notes. Here are my thoughts to help with this:
- Understand where the documents (sale or lease) are located.
- Know what has to happen next with the negotiated agreement, who is to action the process, and when it is to occur.
- Keep the client fully briefed on where the documents are now and what is to happen next.
- Keep good file notes on any conversation that may occur with the parties to the transaction.
- Any ‘subject to’ actions or ‘specific performance’ tasks should be monitored and pushed along.
- Ensure that all monies in the transaction are paid on time and held by the right people.
- Protect your clients position at all times.
So the message here is clear. If you want to earn your timely commissions in commercial real estate sales and leasing, it is essential that you track and move the deal ahead on behalf of your client.