When you list a commercial property today, you have to make sure all the documentation is accurate and signed. Many a client has taken the opportunity to avoid commission when the chance or circumstances exist. There is nothing more frustrating than doing a good job in marketing a property then fighting for your commission after the deal is done.Here are some rules to help you with the commission protection process when it comes to commercial sales or commercial leasing:Make sure that you are dealing with the correct owner of the property from the outset of listing negotiations. If there are any partnerships or company structures to take into account, then check out the correct people within each or all of the ownership structures. All of the correct owners of the property should be signing your appointment to act. You may need to get company searches to validate the true company ownership position.
The appointment or listing forms should be legally accurate for your location and correct with regard to the subject property; any errors are likely to be seized later by the client as an outlet for avoiding commission or fees.
If you are expecting vendor or client paid marketing money, get it before you start any marketing program. Many clients have not paid monies when the property has not sold or the sale fell through for any reason.
In the case of marital dispute relative to property disposal, be very careful with the instructions you receive and the signing of the authority to act as agent in a sale. Make sure that you are fully satisfied that both parties to the transaction have appointed you to act as the agent. In such circumstances of divorce dispute, it is always wise to take any instructions from either or both parties in writing. You can then communicate individual instructions given to you by one party to the other party to avoid any conflict circumstances and later dispute.
When listing the property, meet the client on site and walk through the property with the client to ensure that you have a complete understanding of the boundaries of the property, the improvements on the property, and any existing property matters or challenges. Any instructions, orders, or notices that come to your attention in the inspection process should be documented and dated. All discussions with the client should be similarly recorded. Evidence is critical in the commercial real estate profession to protect your position and integrity.
Get copy of all property title and ownership papers that reflect the true situation today. This should be done before you take the listing to the clients to be signed.
Your listing documentation has to reflect all variations of circumstances where you would expect to get paid your commission. The listing documentation should specifically say how you will be paid your commission and under what circumstances. It is good practice to have the client initial the relative clause in the appointment to act.
If you are the controlling agent to the transaction, make sure that you get sufficient amount of deposit or payment of deposit into your trust account as part of the closure of a deal with a property purchaser or tenant as the case may be. This amount should pay your full amount of commission under the transaction if and when the deal is completed. It is then simply a matter of extracting your commission from the monies held in trust account and you can then undertake the payment of the balance to the client.
It is likely that solicitors will be involved in the property transaction on behalf of your clients. Make sure that your involvement is fully noted and acknowledged by the client solicitors.Many agents will know just how difficult it is to get payment of commission after settlement. Solicitors and clients tend to forget about the agent and place low priority on discharging any commission or fees payments.Regrettably, clients tend to place a low priority on the payment of commission once the settlement has been achieved. Any errors in documentation or listing appointment are likely to be seized as an opportunity to renegotiate fees or avoid payment.
Tag Archives: Investing
Getting Started With Online Investing
As with everything else these days, the stock market has gone online. If you can shop, pay bills, and do your banking online, why not invest too? Investing online is not as big of an ordeal as some people make it out to be. The key is to know what you want before you start.
When opening a new account, investors need to answer the regular questions, such as the type of account they want and how it will be funded. When selecting an account type the kind you choose will depend on whether or not the account is taxable or tax-deferred, and also whether it is for just you or you and someone else.
You will also have to decide whether your account will be “cash” or “margin.” A cash account means you are only able to place trades for investments with money in your account. A margin account gives you a credit line from your brokerage firm. You can also have a “margin account with options,” which means you are purchasing the right to buy and/or sell a stock at a specific price. Options are quite complicated and usually only purchased by traders with experience and large portfolios.
After choosing the type of account money must be deposited. The initial deposit can be sent to the firm by check or an automatic transfer from a bank account. Another option is transferring an account from a different brokerage firm, but the process is quite lengthy and can take months to complete.
If you are trying online investing for the first time, start small. Don’t put every penny of your life savings into an online account. A smaller sum is easier to handle and easier to keep track of. When you feel confident and are ready, then you can expand your online account.
Another good thing to do when investing online is to try and stay diversified, in other words don’t concentrate all of your portfolio on just one thing, instead develop a well-balanced portfolio of stocks, bonds, and cash.
Many brokers will encourage you not to bail out on mutual funds. The main reason most investors are in mutual funds are because they don’t have the experience to make their own calls on stocks. They are also occupied with other things beside just watching the stock market. Keeping your mutual funds can be a wise decision instead of prematurely “playing the market” in individual stocks.
It is important to remember that online brokerage firms add fees and charges that need to be looked at closely. Before buying and selling large scale stocks online, look at what the tax results are of such trading. The average online brokerage costs are lower than full-service brokers, but fees can still add up.
Remember that just because you are investing online, the Internet is not foolproof and you are bound to run into some problems. There will surely be times when you are unable to gain access to your account. You’re connection could be down, the brokerage firm’s server could crash if trading is overly heavy, you could experience a software glitch, or you may be away from your computer when there is a major market move. Always be prepared for these things and keep in mind the available alternative trading options such as phone trading.
When investing online it is your responsibility to say as informed as possible. Don’t just settle for what you hear. Instead do a little research on a company before investing in them. There are services that send you automatic e-mail messages over news about your stock; take advantage of these. Remember in online investing everything is up to you and knowledge is power.