I only know what I know. In other words, I have no idea how many other problems were kept secret from me and were somehow resolved. Ignorance is Bliss ! People, including Agents, have to be allowed to GROW; have to be allowed to think for themselves. So to get things done, you can't become a Control Freak who needs to know every dinky detail about every listing and every transaction or else he can't sleep at night lying awake thinking about a missing signature or that "AS IS" in some contract should read "IF YOU ONLY KNEW". Vicarious Responsibility means YOU are responsible for everything; but you can't allow it to make you miserable worrying about everything.

There's another active thread this week questioning what Brokers actually do to earn their keep. In a perfect world, it will always look like they do nothing. But this isn't a perfect world. I just hope that if Agents detect that when a new situation is ariseing that they thought was on terra firma turns out to be in quick sand, that they recognize it and call for help.

Management in Real Estate is like management anywhere else; EXCEPT that we are dealing with many more personalities on what is often a very transient basis and involving what is often their most valuable asset, and we are helping them to make some of the most signficant decisions in their lives. When they make bad decisions, they always remember how instrumental we were. When things go right, they say "We did this ourselves !"

In this setting, how can we help but make occasional mistakes and ruffle a few feathers ? Without those it would be pretty boring ! I'm so glad that I haven't had to deal with the same problem TWICE. Maybe I was just better prepared when the same situation arose a second time.

Oh well, to finish that quote from above "I don't know what I don't know". Such simple words; but they explain a lot. It takes a long time to digest them.

PS: More exciting things happen elsewhere than here in the backwaters of Vermont. This is a really quiet place ! I think that's why I'm here . . . . and not there !

As an agent speaking I have to drop the deposit issues on the Brokers Desk.

3 years ago I had a buyer wanting to buy a condo. He (the buyer) was a real A$$ anyways. So I got him a really good deal on the condo, we went into escrow. 2 days before closing I did a follow up with the Title Co and lender it was all set to go. 1 day before closing I called the buyer, he was excited. The day of closing I get a call from the Lender asking why the deal was dead? I called the buyer and he said he changed his mind, no other excuses given. I told him he would likely not get his EM Deposit back, I could only ask.

The seller will not release it, the buyer will not negotiate. It was really taking up to much of my time as a Salesperson, so I turned it over to the Broker. As far as I know that money still is sitting in the trust account.

One client goes to 10 property consultants for his requirement assuming that he would either get a better deal or a faster response. Which only makes things difficult for the broking fraternity and in turn the client himself. Also, not many brokers ask their clients to register the requirement with them, as is followed by all the IP's & also internationally bringing the broking rates to standardized forms.

Perhaps not directly on point, but maybe a key factor worth considering is risk reduction, by developing, establishing and monitoring company policy and procedures, utilizing checklist, etc. and recognizing that on occasion, smart people do stupid things.

Locally: We have mandatory Error & Omission Insurance which, if read carefully, contains many exclusions whereby the insurance company will not defend the insured or pay for any related costs, as follows:



The insurance company requires immediate notification of a potential claim, or they will deny coverage. Further, once notified their attorney’s direct the insured to henceforth, refer all matters and persons as may be related to the potential claim be referred to them.

The broker-in-charge of the daily operation of the brokerage firm acts as a “compliance officer” in that they review and ensure that their brokerage firms risk reduction practices and policies are followed and maintained by all licensees.

To encourage a licensee’s compliance, the brokerage firm incorporates an indemnity clause within their Independent Contractors Agreement indemnifying the brokerage firm.



Important Notice: This information is provided as basic educational information by the author and is not a substitute for the advice of an expert and/or the advice of a lawyer. There is NO representation as to legality, accuracy, correctness of the herein information and the reader is strongly urged to consult a lawyer in the relevant jurisdiction to ensure accuracy before acting on this information

I'm an independant broker amd I love it! I think the correct words are "preventive maintenance">