Have you been wondering what's going on with the phones lately?

Clearly we have some challenges and I thought I'd take a moment away from the usual broker stuff to update you on the phones, and other initiatives.

We are working through an internet based phone system (VOIP) and when there is a small internet outage it can cause the routers to malfunction requiring a reset. Our phone issues are not easily solved without spending many thousands of dollars unfortunately.

The solutions include moving to hard lines which would cost thousands more per month, or we can move to a T-1 commercial line also costing many thousands, or perhaps create a site to site VPN connection to ensure more stability in the system with fewer outages.

Bottom line, as the company grows we will have more resources to devote to technological infrastructure and that time hasn't come yet. VOIP systems are getting better every year so look for improvements soon.

Additionally, we are fully engaged in revising the agent orientation and on-boarding process, the website, and our marketing/branding concepts company wide. Look for exciting announcements this summer!

Does the AS IS clause supercede the home inspection contingency clause?

One of our agents was involved in a transaction where the seller (agent) insisted that the AS IS clause superceded the home inspection contingency clause. That is not the case. What you need to be aware of though, is if you want to do an inspection with the "walk away" clause intact - and have it be AS IS - you need to check the "General Inspection" clause, rather than the "Specific Inspection" (the first one). This allows the property to be sold in AS IS condition - but gives your buyer the ability to walk if the inspection turns out to be a major issue.

How can I reflect buyer broker commission in MRIS when it's a short sale?

MRIS compliance will not allow you to indicate that a third party will determine compensation for cooperating brokers based on negotiated contract terms, therefore; you must put in a coop commission amount you will honor - no matter the net commission agreed to by the bank. This is exceedingly challenging, of course, because you do not know what the bank will approve, so you may be left with very little commission as a listing broker if the bank hits the commission hard. My suggestion is to offer 2 to 2.5% because in most cases the commission doesn't move lower than 5% during bank negotiations

There are multiple sellers/buyers in this deal in multiple locations ...

Question: There are multiple sellers and buyers in this deal in multiple locations - can I have some initials on one contract, others on another contract, and then put them all together as one ratified contract?

Answer: "Execution in Counterparts" is generally not allowed in most of our sales contract documents and would therefore not be considered "ratified." Additionally, lenders and title companies will most likely not accept this form of documentation. You might use this as a temporary bridge to bring all parties together, but understand, the contract is not officially ratified until all the parties sign one document. Use an electronic signature system like Docusign to help multiple parties in multiple locations sign the same document.

When I host an open house for another agent, can I represent a buyer who may want to buy that house?

The short answer is no. This is straight from an email from the Maryland real estate commission that is crystal clear.

"There has been much discussion on the proper role of the agent while sitting an open house. First and foremost, there seems to be a misconception that there is some distinction under the law of agency between the listing agent and any other agent affiliated with the listing broker regarding the open house. It is absolutely clear that any agent affiliated with the listing broker who holds an open house is there exclusively as the seller's agent. This duty of loyalty to the seller is not in any way diminished just because the agent is not the listing agent. This is important because many agents have openly admitted that their primary goal in sitting an open house on behalf of the listing agent is to recruit prospective buyer clients. Such activity can be a violation of the agent's duty of loyalty to the seller."

In summary, your job at the open house is to represent that seller - and to get into dialog with as many people as you can to see if there are any prospective buyers for the seller's house. In the course of that dialog - if you're doing it correctly - you're most certainly going to run into people too early in the process to buy that house, and other people who simply don't like that house. It is perfectly okay to work to form a relationship with those people with the intention of representing them for another property.

If you have more questions on this topic or have ideas for another topic, email them to brokerhotline@kellerwilliamsdc.com