Well, it’s been quite a year! A year of course, filled with (yes, I will use that most dreaded of words), change. Change is a challenge for all of us, especially those of us who have been doing business for many years. And by the way, all the snappy phrases in the world don’t help any. “There is nothing permanent except change,” is one I often hear. Oh yeah, thanks a lot! Now I feel much better about having to relearn a bunch of new contracts. For me, there are 2 things I try to keep in mind regarding change. First, I must come to terms with the change. Being upset about it or wringing my hands doesn’t make things any easier and only delays the inevitable. Second, I have to learn about whatever is new and educate myself so that I can adapt, because there is no other option. Whatever is going to change will change with me or without me.
Given the recent form changes, I wanted to mention one thing to all of you. Communication with the title company regarding how compensation is being paid, who is paying it, and how much, is key to making sure your deal goes smoothly. ITC has changed its Verification of Compensation forms to be in line with the new sales contract and the other new forms. So, please be on the lookout for these documents from us. Keep in mind that right now everything is still new and there remains a little uncertainty out there about how compensation should be shown on a statement, how much can be in the form of a credit when there is a loan, etc. So it is worth it to make sure that the terms of compensation on a particular transaction are communicated clearly and understood by all. We want to make sure everyone on a deal gets paid correctly.
I mean if you think about it, communication is what makes the real estate world go round. Every time a contract is written, the parties are communicating how they want their transaction to be done to everyone on the deal. Each amendment, each rider, each counteroffer, are not just agreements between the seller and buyer. They are instructions to the title company closer/processor and the buyer’s lender dictating how closing and loan documents need to be prepared and how closing funds should be disbursed. Something to keep in mind for your next deal.
Happy Holidays to all of you! We look forward to serving the real estate community in 2025!