subject: Foreclosure Forms: Clauses Your Foreclosure Cleaning Contract Should Include [print this page] There are a lot of cleaning business forms for sale. However, as a foreclosure clean up business owner, it's important to use "foreclosure forms" that cover sticky situations you will encounter when working with realtors and banks.
To that end, following are some clauses/stipulations your foreclosure cleaning contract should cover.
FORECLOSURE CLEAN UP CONTRACT TIPS
Contingencies: The contract you use for your foreclosure cleaning business should state that any monies due you are not contingent upon whether a deal closes or not.
Any number of things can go wrong in a real estate transaction and you want to get paid whether the buyer closes or not. Having a contingency clause like this in your contract will ensure that you do and/or have legal recourse if you don't.
Get it in writing: Get everything in writing. This is the foundation of all contract law because it avoids confusion. Even if you are "friendly" with all/some parties involved; have worked with them on many occasions; they are a family member; etc., look at this not as an adversarial move, but quite the opposite -- a meeting of the minds. Because if you both agree, there should be no problem with it being in writing, right?
List Payment Terms: Remember to list your payment terms on your foreclosure forms (eg, payment due immediately upon completion, within 30 days, net 60, etc.).
Get Pertinent Info: This is something that can really save you a lot of hassle if you have a problem getting paid. When interacting with realtors, remember to get their broker contact information as well. Why? Because realtors operate under the umbrella of a broker; it's law, they have to.
If you have a problem getting paid from a job, you can contact the broker who may be able to take further action.
Other pertinent info to get: The address of the subject property on the contractual foreclosure form, estimated time of job completion, and a host of other important details.
PROTECT YOUR (ASS)ETS
In today's foreclosure-ridden market, commissions are few and far between for many realtors. This affects related interests as well, eg, contractors, banks, appraisers, etc.
If you don't have a solid foreclosure cleanup contract specific -- one that is, on purpose, specific to this industry --you could literally be working for free because you don't have your I's dotted and your T's crossed.
The Beauty of Foreclosure Forms and Contracts for the Cleaning Industry
Real estate professionals (agents, mortgage brokers, banks, contractors, etc.) are all accustomed to working with written contractual agreements. They expect to be presented with them. So when you have one, it makes you look more professional -- and it protects your businesses' profits.
Note: Of course, this article is not intended to be a substitute for legal advice regarding your foreclosure cleanup business.
