Sure, it's easy, cost-efficient and maybe even a safe bet when working on a real estate deal of some kind. But believe it or not.... you might be playing with fire at the use of just some basic generic forms. Here's, yet, another major surprise when it comes to real estate law and deals. Generic forms, such as "lease with option purchase" forms, don't cover all the bases in a real estate deal.
There are so many questions to consider, questions requiring the input and advice of a skilled real estate attorney. No generic form can handle any of those questions. You might be facing any of these dilemmas:
- How long will the lease go?
- Will there be any credit for rent toward the property?
- Do you want to be "legally bound" to the house?
- Do you want the "right to first refusal"?
Ask yourself if you happen to know the answers to any of those questions; and if you do, you'll probably know to customize those generic forms to include such matters. Chances are you really don't, not without the consultation of an attorney or agent. So do away with the forms. Genericity is left as an issue to address in trademark law.
This is real estate law. Genericity shouldn't even be discussed. If you're involved in a real estate deal -- be it a commercial property or just a home in a neighborhood -- cover all your bases, get an attorney to review every detail, and ensure that nothing in the dealing is cookie cutter. Just about 101 things can happen in a real estate deal. You have to be prepared for all of it.
Times are indeed changing in the real estate stratosphere, especially with this news about a Denver real estate startup company entitled Trelora Realty. What's the deal here? In essence, we're looking at a major revamp of the commission structure, typically standard at 2.8%. That may all chance, specifically with this realtor, sparking a huge debate about how commissions will now operate.
This owner Joshua Hunt is breaking ground here. Instead of taking a commission percentage, Trelora charges a flat fee, something unheard of in the industry. The fee, regardless of any stipulations or situations under real estate law, stays the same at $1.7K with $3K take-home compensation for the company. Not too shabby.
There is opposition to this, though, specifically from the National Association of Realtors, stating that the traditional commission system works fine. Essentially, if it's not broken, don't fix it. Change, however, can present new opportunities, new outlooks, and a new vision. In fact, you might've not noticed.... But the name "Trelora" represents the letters in the world Realtor, all jumbled together. Hunt claims they're not "realtors" in the traditional sense. This is a new age.
The argument against this, though, is simple: it's a flat fee, limiting services. And everything in real estate law and the industry itself is everything but limited. Can it turn out to be profitable? Surely, it might be an interesting benefit to homebuyers. But what about the market? Will it collapse from a flat fee not accounting for all the hours spent trying to get a deal through only for it to fall apart? Or will it strengthen given the opportunity for solid and dedicated revenue pouring at that high amount per prospect? You decide.