FEBRUARY 2013 |
www.opp-connect.com
This will prevent any complaints or misunderstandings, and create a reliable and effi cient persona for your business, should you wish to undertake any further work for the client in the future. It could also be the difference of ten more customers if the said client deems your service worthy for recommendation. Lest we forget the agents – they should ask for information too! If the developer hasn’t told them everything, can they be trusted by the buyer? Some sort of training to the agent should take place, to ensure they understand the product they’re selling – perhaps a visit to the place of construction before building begins to allow them to get to know the area! The agent is not there to stop the deal happening, stated Peter Esders – their duty is to make sure the developer is providing the best service they can to the client.
3) What are the regulations of the sale?
Regulations relating to the sale of property are often misunderstood, largely because they vary per country. In America, it is very highly regulated, but varies per state; in Italy, it is unregulated, and you are not entitled to commission; in the UK, both written and oral regulations apply. However, this is a problem since oral regulations mean there is a lack of proof involved. The regulations even differ according to who signs the contract. In Malaga, for example, the developer would sign the contract rather than the agent signing on their behalf. Whereas in Turkey, an agent has to have a license in order to be legitimate, and there needs to be a written permission for the agent to sign on the behalf of the developer.
Even more puzzling is deciphering where the arrangement is regulated, and this often causes ‘rocky ground.’ What happens if the developer and agent are from different countries? By whose law should the arrangement abide? There is also the issue that many countries do not have professional regulators. For the UK for example, the FSA is under the impression that it can regulate agents, yet as Stefano Lucatello points out, the sales of property abroad can never be regulated because they would take too long!
4) Choosing the right bank account
It might seem one of your more minute worries when buying a property or dealing with your business affairs, but choosing the right bank account is important. Commonly, bank accounts are either personal or company-based, meaning there is no cover available if something goes wrong during transactions or during the construction stage. The panel advised that you should have an account that is clearly
Small print | Always make sure you contracts are watertight – a good complaints procedure is part of this
distinguishable from your own money – this way you’ll know exactly what is fl owing in and out of the operation. Consider a proper client account, if these are recognised where you work, or an escrow account under which a trustee or lawyer (or some sort of third-party) will hold the money until the event completion. This means that the buyer is covered if anything goes wrong.
An escrow account will give both protections to the developer, against non-payment by the buyer, and to the buyer against non-performance of the
“Regulations for the sale of property are often misunderstood, largely because they vary per country”
developer – so no matter which of the two you are, the account will be benefi cial.
While such an account provides safety and security for your fi nances, it also complies with any regulation requirements and protects against possible cases of fraud. Cross-border payments between the two parties are also effi cient and easy to set up, saving you valuable time. However, you should make sure that you only create an escrow account with an offi cial and familiar company – escrow fraud is extremely common, especially online! Often, they will pose as ‘look-a-likes,’ appearing much like popular fi rms. Be cautious about what information they’re asking you, and what information you give them. You can check the validity of an online
escrow company, and their license, with your country’s regulating authority. Use a company that is Government Agency authorised (UK) or State licensed (US). These companies are regulated and undergo continuous checks. They involve bank accounts that are fully protected by law and bonds that will ensure customers can retain any money lost.
5) Getting your complaints procedure wrong When you start off your relationship with a buyer or seller everything is rosy, with no hint or expectation of any trouble to come. Unfortunately, things don’t always end up that way. That’s when you discover the advantages of having good complaints handling procedures – and the potentially high cost of not doing so!
The starting point for a good complaints procedure should be a well drafted set of Terms and Conditions of Business (T&Cs). These should set out what you are going to do for the person. E.g. identify their wishes and then introduce them to estate agents and developers likely to be able to supply property to satisfy those wishes, and lawyers to act on their behalf in connection with the purchase. Your T&Cs should also set out what you are NOT going to be doing for them. E.g. you do not give legal or fi nancial advice. You do not carry out due diligence on the property. You do not provide or guarantee the availability of mortgage fi nance. You should also be clear about your
charges and when they will become payable. The T&Cs should also set out a
simple procedure for dealing with complaints if any dissatisfaction arises. E.g. If you are dissatisfi ed, speak to Person A. If they are not able to resolve the problem to your satisfaction they will send you a copy of our complaint handling procedure, which can be downloaded at
www.example.com. The wording of all of the above is extremely sensitive and important. If you are not experienced in this it is probably best getting these documents produced by someone who is. Working across borders always has the potential to cause language problems – in the case of such sensitive language, be very careful in choosing a translator. Once someone complains, deal with the complaint quickly and generously. It will save you both time and money. Of course, if the compliant is ill founded, you can say so – but don’t get angry and don’t make your dispute public. To handle a complaint well shows you in a professional, reasonable light and goes a long way to ensure repeat business and positive word of mouth. If correctly dealt with, a complaint can even be positive to your relationship with a client.
It can be cheaper to make at least a gesture to the complainant. Very few complaints are completely baseless. Remember, that if this goes to your professional body or court they are likely to take a more generous view of the complainant’s position. Read a (short) book about
handling complaints – and then follow its advice. Many companies do not learn. They, repeatedly, deal with complaints badly and it costs them a lot of money.
FEATURE
LEGAL PITFALLS | 27
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