Real Estate Agents Should Learn Better Paperwork Skills

For many real estate agents the paperwork involved in the sale of a home can be difficult, but it is also of utmost importance. Unfortunately a large percentage of agents lack either the knowledge or patience (or both perhaps ?) to properly handle this task, and this needs to be addressed in our industry.

From a legal standpoint there are agents who, on almost a daily basis, are setting themselves or their clients up for potential lawsuits. Here’s a great example: three times in the last week alone I have seen poor examples of paperwork skills, from sloppy and missing papers, to erroneously filled out disclosures (where the agent obviously did not review the client’s disclosures before presenting them to the buyers’ agent, me – this happened twice in the last week, by two different agents), to sending disclosures that are not on correct, updated forms.

Paperwork is of utmost importance in a home sale, as what one says, or neglects to say, could subject one to liability down the road. Now, it is understandable that most agents are not attorneys, but there are still ways for any agent to master paperwork skills, and here they are:

1. Broker responsibility: In my professional and legal opinion, no paperwork should go out for signatures without broker review…yes, even for those very experienced agents. Those who want to avoid this can get a broker’s license. But in all reality there is just not enough oversight in our industry and this leads to lawsuits. Personally as a broker I would NEVER want someone out there representing my company who is doing a sloppy job! Every broker should have such a clause in the employment contract – either the broker or a designated person inside the company should review everything before anything goes out for signatures. Call me over-the-top, but this is how I would do it.

2. Better training: this goes hand in had with the above: brokerages simply need to have more and better training. When an agent joins a firm s/he should learn how to handle paperwork, and that includes going through EVERY form…tedious but it will ensure  better skills and fewer lawsuits. Many agents have probably never actually read many of the forms anyway. Furthermore, there should be training sessions held whenever new forms are released to make sure all agents understand any changes.

3. Have a checklist in your file: Every agents should have a checklist so they can see what papers have been fully executed and which still need to be submitted for signatures. This is imperative – those agents who fly by night and have no idea what forms are required are just asking for trouble.

4. Use a transaction coordinator! This is a GREAT way for anyone to stay on top of paperwork, and a very simple way, albeit at a cost (but you can shop around) to avoid potential legalities down the road. Make sure your TC is experienced; the best way to find one is to ask around and then interview the recommended person/team.

5. Review all paperwork filled out by your clients before sending them off to the other side: this is especially important if you are the listing agent and your client is filling out disclosures. You need to review them and see if your clients have failed to answer any questions, or left out information of which you are aware (e.g. if there is an HOA and the client did not check the box so indicating – this has happened several times in paperwork I have received from sellers).

6. When in doubt: ASK! There is always someone you can ask for help when you are not sure about which form to use or how to fill out a particular form. It is more important to admit you have no clue than to just “wing it” and submit paperwork that may contain errors.

Anyone can fill out paperwork correctly, so there is no reason to ever send over papers that are faulty. Use the above points to make sure you protect your clients, and you will not only be a hero, but you will be acting in a professional manner and doing the right thing.