what forms do I use? that's a good question....
well you know, for years I was using my own forms. I had built a library of clauses I used from commercials sales and leases for over 20 years....
then a few summers ago a past tenant of mine came to me wanting to buy a building. I knew the guy was a shyster but also knew that if I didn't sell it to him, someone else would.
so I sold him a building, under market value, then he came back at me asking if I knew there was a fire in the building back in 1963. I told him I wasn't even born in 1963. Then he tried to go after the listing agent - (this is inspite of him having his due diligence period and having a home builder as his inspector)
when he find he could not go after the agents, he takes a run at the seller. threatens him with a court case and the rest. (meanwhile, whatever historical fire there was, was fixed since then and up to code)
so instead of going to court, the SELLER KICKS IN A FURTHER 10,000.00 just to keep the guy happy!
so, then he puts a restaurant in the building.
a year later he calls me and says he wants out. Says hes flippin burgers* in at 6am and still there at 10pm he says "do what you have to do but get me out" (*and they weren't even veggie burgers which makes it all that much more cruel)
so I said "Fine but regarldless, you need to sign a listing agreement"
he says, ok but I DON'T want it on MLS. its a new restaurant and I don't want word getting around that its already for sale.
Fine, I said, we can make up our own non-mls agreement. (at this point the real estate board never had such a contract, ONLY MLS - after this incident, they now change their forms to include NON-MLS listings)
My agreement had ALL the language that the listing form had - everything to make a firm and binding contract, it had a signing date, and END date, parties to the listing, commissions, actions etc.
So I find a buyer. I tell the buyer, look Mr Buyer, this restaurant is NOT on MLS. Its NOT advertised publicly. IN order for me to give you information, you need to sign this CONFIDENTIALITY AGREEMENT stating that you will not communicate with the seller OR his staff OR representatives thereof in any manner OK? Ok he agrees and SIGNS the Confidentiality agreement.
after I give them the info, all of a sudden from beging really interested and calling me EVERY DAY at 0800hrs, all of a sudden the calls stop and NEITHER PARTY returns my calls!
later I find out that they had BOTH COLLABORATED BEHIND MY BACK AND CUT THEIR OWN DEAL! of course they ignored my letters to pay the commission.
So I went to the lawyer. Lawyer says you have a solid case BUT your commissions would be 16,800.00 (10% of the listing price of 168,900.00). he says to me, it will cost you at least 20,000.00 and take two years to go through the court system AND Even if you win, he says, "you will still have to collect and they will just say they don't have the ability to pay and you will have to take some ridiculous settlement anyway, hence the LAWYER advises me to got to SMALL CLAIMS COURT - which at the time, in our area, only went up to 10,000.00 so Win or Loose, they already have a winfall of min $6,800.00!
but just incase, I got the lawyer to write up the small claims forms anyway to make sure I dident make a mistake.
I dragged four of them into court, the seller, the buyer and the buyers wife because they closed the deal in HER NAME, and the seller brought his lawyer too. I was by myself.
so I cross examined them all, the all admitted they had signed the agreement and everything and I felt 100% confident that I won but the JUDGE takes a run at MY FORM!
he says "its not an official real estate listing form"
I said, its irrelevant, its CONTRACT LAW! these people signed contracts, they BOTH BREACHED the contracts and failed to pay me
Judge said, and I quote, "its not the first real estate case I've seen and it wont be the last - have you got anything else to say?"
yes, I said, for over 20 years, I have based my livelihood on contracts. I said, I get paid ONLY on commissions and that I have two children at home that rely on my income. these people did everything in their power to avoid paying commissions.
I thought I had them.
the Judge says, "if you want to be in real estate, you will have to use proper forms -- ruling for the defendant"
and with that, he closed his briefcase and LEFT THE ROOM! I was flabbergasted! Jaw on the floor! Defendants lawyer even had the balls to ask for COSTS from me! which the judge denied.
so I sat there thinking about what the lawyer told me, how it would take 2 years, and 20k to properly prosecute these scum in a higher court, then even if I IDID win, collection would be a problem. they are all self employed and can lie about their income so I couldn't gauranshee their wages from their employer you know?
so instead, I went over to them and SHOOK THEIR HANDS. TOld the lawyer what a good job he did, congratulated the seller on his win and the buyer... but the buyers wife would not shake my hand!
they got off Scott free and the ***** wouldn't shake my hand!
so since then I've been using these forms. they are the same ones used by the the real estate board, although Im not a board member. to sell real estate in the Province of Ontario you need to be a member of Ontario Real Estate Association but not necessary to belong to a board, therefore I get the forms direct from these guys
http://www.formpaper.com/Index.html
real estate brokereage is not what it used to be when I got into it in the late 80s. I enjoy video production much more!
