Contingency Management: No experience required.

The answer to the question is in the contingency and the question is always: Who is doing what, by when, and if not, then what?

Fortunately for seasoned and new licensees experience with a contingency is not required (and may be advantageous) to effectively manage a transaction. A properly written contingency has all of the action steps the parties agreed to follow spelled out sentence by sentence. All contingencies in the WB documents and WRA addenda A and B are properly written.

Working with agents for many years it’s clear to me contingencies are not read, or not comprehended, before the licensee balks. Following assembly instructions is not my habit, so it’s kind of surprising to me that following contingency action steps comes easy for me. I know contract terms are not something everyone enjoys, but I do and I think I can help those who flinch over knowing “…who’s going to do what by when, and if not then what?”

Tip: Assuming the contingency is written in a reasonable sequence, the contingency will answer all of our questions. Who is going to do what? When is it going to be done? If there is a cost, who is paying the cost? When the thing that’s being done is done, what are we doing with the results? If the results are not satisfactory, who is doing what by when? (Usually sending a Notice) If a Notice is sent by one to the other, then what is the recipient permitted to do? And by when is that thing they may do due to be done?

While every contingency can be reduced to a flow chart, I don’t think diagramming is essential. The steps can be seen by using a simple highlighter or by listing the steps in sequence.

Regardless of your method to turn words into a step by step action plan, please be comfortable knowing you can’t go wrong by reading and following the steps in the order they are written in the contingency. Nothing you have done previously, or someone once did or always does, is necessary for you to excel at contingency management. In fact, the more you depend on the actual contingency and it’s exact words, the safer you are in your practice. Trust yourself to read and comprehend, and trust the fact that contingencies change. What you once read might be the same today, but chances are something changed.

Author: Tom Meyer, Owner-Broker, Essential Real Estate, LLC Madison, WI

The real estate transaction, disclosure, and confidentiality are the business of a Wisconsin licensee. It's in the transaction where the skill of the licensee, and their commitment to the law where the public is protected or placed at risk. Essential real estate services are specified in real estate license law. Those services are worth professional fees. Paying professional fee rates for administrative services is a choice when an alternative exists. We are that alternative. Old business model commission rates are taxing the home equity of American home sellers. Essential Real Estate LLC was created so our clients keep more of their home equity, spend less on broker fees, and receive skilled representation in negotiating purchase agreements.

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