BIC TIP #1320: Stop Sending Demand Letters
“If you do not give us our due diligence back, then we are going to report you to the Real Estate Commission.” As a broker-in-charge, Stephen Long, your Notorious BIC, hears comments like this all the time, and agents need to be careful.
Declaring a Breach Is Not Your Call
If you are sending a demand, or claiming that the seller or the buyer is in breach, you could be the one with the problem. Determining whether a party is in breach is a legal conclusion, and making it can put you in a pickle for practicing law. As real estate brokers, we do not have a law degree, unless you do.
Who Decides
You may believe that a seller or a buyer might be in breach, but that is up to their respective attorneys, and potentially a magistrate or even a jury, to figure out.
Stay in Your Lane
Brokers coordinate the transaction. When a dispute arises, communicate facts, follow your contract procedures, and if the parties need attorneys, they need to get them.
The Practical Takeaway
Stop sending demand letters and stop acting like an attorney. Keep your communication factual, involve your broker-in-charge early, and refer legal questions to the parties’ attorneys.
This BIC Tip is general real estate education for licensees and consumers, not legal, tax, or financial advice. Rules and forms change, so verify current NCREC rules, MLS rules, and standard forms, and consult a North Carolina attorney or qualified professional about your specific situation. See Disclaimers & Disclosures.
