BIC TIP #1221: This Form Can Cover Your Assets

Tell them what you are going to tell them, tell them, then tell them what you told them. That old teaching rule is the spirit behind this BIC TIP. Stephen Long shines a light on the Realtor Professional Services Disclosure form. It is not a form the Real Estate Commission requires, but if you are a prudent broker looking out for yourself and your clients, Stephen says it is not optional.

A Checklist of Everything a Buyer Might Need

The form is essentially a checklist of potential services and inspections a buyer could choose. Think attorney, financial professional, home inspection, termite inspection, survey, and all the rest. Each item is a decision the buyer should make on purpose rather than by accident.

Laid out in one place, it helps buyers see the full picture of what a careful purchase can involve.

Start at the Buyer Consultation

Stephen recommends introducing the form at the very beginning, during your buyer consultation. That is when you can explain the options that lie ahead and help buyers plan for costs they may want to set money aside for. Nobody likes surprise expenses during due diligence, and this conversation helps prevent them.

It also sets a professional tone. Buyers see that you have a process and that you are thinking ahead for them.

A Living Document

This is not a one-sitting form. As the transaction moves forward, you revisit it, and the buyer initials whether they are selecting or waiving each service and who the provider will be. You can help line those providers up along the way.

By the time you reach the closing table, every item should be completed as selected or waived. That gives you a clean record of what was done, and what the buyer chose not to do, in case questions come up later.

The Practical Takeaway

Introduce the Professional Services Disclosure at the first buyer meeting, update it throughout the transaction, and make sure it is complete by closing. It documents your advice and your client’s decisions, which can save you and your buyers a lot of headache down the road. Check with your broker-in-charge about how your firm handles it.