During a recent chit-chat on the phone, a colleague said to me, “I’d love to be a fly on the wall listening to members explain the various documents they ask their clients to sign.”  

Meaning, “I wonder if the documents are explained at all,” or if they are, “What would a well-informed third party think of their explanations?”  

By “well-informed third party,” think BC Financial Services Authority (BCFSA) investigator, hearing panel, claimant’s lawyer, the presiding judge in court and/or members of the Board’s Professional Conduct Committee.  

Since April 2006, when I put on my Ethics Guy® hat, I’ve written a column every two weeks. That’s about 400 columns. I’d have to sift through all 400 to figure out the number of times I’ve said, “Make sure your clients and anyone else you ask to sign a document understands what they’re agreeing to before they sign or click,” but I know it’s more than a few. 

Since this is such a basic skill—or should be—it’s time for another reminder.

It helps that we can now create a ready-to-go contract or form with just a few clicks and by entering necessary information into fillable fields. The standard forms populating WEBForms and the ease with which they can be sent to our clients and others for signatures are truly mind-boggling.  

The content of the forms has also been drafted and vetted with the aid of good legal advice. They are based on statutory, legal, and ethical requirements against the backdrop of the latest court precedents and regulators’ edicts. In other words, standard forms rock. 

But they have a few weaknesses that can result in client/consumer/REALTOR® pain, time, expense, and trouble.  

The first obvious weakness involves entering inaccurate information into the fields; for example, wrong dates, incorrect names, inaccurate property descriptions, or badly drafted terms that no one can understand later. This means the standard forms can protect us from common-place errors, but they’re only as good as the person completing them. An old saying comes to mind: Garbage in, garbage out. So, while standard forms can protect us from common-place errors they’re only as good as the person drafting them.

The second weakness, perhaps not as obvious but of great interest to a fly on the wall, is the member’s explanation of what the form means before the client is asked to sign or click it. This has always been important; it’s perhaps even more important today when documents are created to be so very easy to sign. 

Preparing for retirement, I’ve sold some properties over the past three or four years. Prior to that I hadn’t sold or bought any since 1995. Back then, standard form contracts were printed on carbonized seven-page snap-sets. How quaint. Said contracts were shepherded back and forth to the clients by way of their REALTORS® in person or by fax, considered pretty high-tech at the time. A client signed them and then waited an eternity to hear back. 

But with my recent transactions, I was struck by the wizardry of DocuSign®: with absolute ease, anyone could buy or sell a property while watching the hockey game in the comfort of their favourite chair. Big, life-changing decisions, made by way of a one-second click. 

I remember my heart thumping as I clicked to accept the buyer’s offer. So many emotions: sadness flavoured with the thrill of anticipation, fenced in with thoughts like, Is this the best price? Will the buyer close? Am I doing the right thing?  

And I’m in the business! Imagine what someone who isn’t in the business is thinking and feeling. (In a way that’s probably a blessing because they don’t really know what can go wrong).  

As professionals, we don’t ever want to take for granted that the folks we’re asking to click actually understand what it is they are agreeing to. Sure, they know they’re listing their property or they’re buying a property. They know the forms are a means to those ends. But can we be assured they understand, in general terms, the legalise eight-point fine print populating every standard form page?  

Then there’s the speed with which the DocuSign® app zips by the form’s fine print, from click to click. When I was first using it, I was a tad surprised the fine print was shown not so clearly in the background as each new opportunity to click presented itself. It was hypnotic. I knew what the forms said. I understood what I was agreeing to. Can the same be said for an everyday buyer or seller?

At a minimum, your scripting should give them a pretty detailed explanation of what each form says (less so, for experienced clients) before you send them the real-deal listing contract, offer, and regulatory forms.  

I’ve heard that some members send out blank forms for their clients to have a look at before there’s a deal on the table, just so their clients have a chance to really understand what they’re getting into. That’s not a bad idea—have a think about it. 

So, ask yourself, what would a fly on your client’s wall say if it watched and heard what you did and said to explain the forms you ask your clients to sign?

Congratulations, Jessica Chan, Oakwyn Realty, Vancouver!   

Krystian Thomas, Propel Real Estate Group, Sutton Group West Coast Realty is sending you a bouquet.  

Here’s what Krystian told us:

Way to go Jessica! You’re very inspiring.