Agents,

When are you having your client sign the wire fraud alert disclosure? If your clients aren’t signing it at the time agency is created then you are putting the client, yourself, and the brokerage at risk.

Let me explain by referencing both agency contracts:

EXCLUSIVE RIGHT TO SELL LISTING AGREEMENT & AGENCY DISCLOSURE, Paragraph 11: ATTACHMENT. Seller’s Property Condition Disclosure form, the Data Form and Wire Fraud Alert Disclosure are incorporated into this Listing Agreement by this reference. There ARE ARE NOT additional terms contained in an Addendum attached to this Listing Agreement. If an Addendum is attached, the terms of that Addendum are incorporated into this Listing Agreement by this reference.

EXCLUSIVE BUYER-BROKER AGREEMENT & AGENCY DISCLOSURE, Paragraph 10: ATTACHMENT. The Buyer Due Diligence Checklist form and Wire Fraud Alert Disclosure are incorporated into this Exclusive Buyer-Broker Agreement. There ARE ARE NOT additional terms contained in an Addendum attached to this Exclusive Buyer-Broker Agreement. If an Addendum is attached, the terms of that Addendum are incorporated into this Exclusive Buyer-Broker Agreement by this reference.

The goal here is so that none of our clients lose any money! However, let’s suppose one of our clients does lose their down payment or worse the entire home amount in a cash transaction due to wire fraud. If you did not have this signed at the time agency then undoubtedly the clients attorney will sue the brokerage for lack of reasonable care and certainly they would file a complaint with the state and more likely than not, the state would fine you too.

Currently we have a low Errors & Omissions amount of $25 per transaction. I’ve been lenient in the past by accepting the Wire Fraud Alert Disclosure as long as it was signed prior to the Due Diligence Deadline. Here on out, I expect this disclosure to be signed AT THE SAME TIME as the agency agreement. Let’s protect our clients, the brokerage, and your license.

Let me know if you have any questions regarding this form.

 

Thanks,

Rich