Recently, I gave a talk to the Women’s Council of Realtors, and I started by giving each attendee a handout called “105 Things That Brokers Do.”
Obviously, they are seasoned professionals, and my intent was not to tell them how to do their jobs. Rather, the point I made was that the lines between their responsibilities and mine as a real estate attorney should never blur.
The message was, “I don’t want your job,” emphasizing that we have distinct lanes we need to stay in to serve the best interests of our clients. In the backdrop was the settlement with the National Association of Realtors that will impact buyer brokers’ commissions.
Brokers: The Multitasking Professionals
Brokers handle a multitude of tasks to find the right property and close deals successfully for their clients.
They are involved in every step of the home buying and selling process, from showing properties to negotiating prices and managing inspections. For instance, brokers might arrange for specialized inspections like radon checks, sewer scopes, or drone surveys of roofs to make sure the property is in good condition.
They are also responsible for marketing the property effectively, so that it appeals to potential buyers.
Attorneys: The Legal Safeguards
Attorneys, on the other hand, focus on protecting clients’ legal interests.
My role as an attorney is to affirm that the contractual aspects of the transaction are sound and that my clients are safeguarded against potential legal issues. This includes reviewing contracts, identifying legal risks, and negotiating terms that protect the client’s interests. My role as a real estate litigation attorney often has me looking closely at issues that might result in litigation and to steer my clients in such a way that assures that a lawsuit will not be in their future.
Occasionally, I’m asked to handle For Sale By Owner (FSBO) transactions for which I charge more, because they require a shift in my approach. Without the assistance of a broker, I’m flying blind and have to take on additional responsibilities, such as advising on property conditions without firsthand knowledge of the property. Here, I may indeed need to suggest a sewer scope to check for root intrusion, which can be a costly issue if not addressed.
The Changing Landscape
With the recent settlement by the National Association of Realtors, the commission structure for buyer brokers is expected to change.
This might lead to attorneys being asked to fill the void traditionally handled by brokers. I don’t want that job, because I think like a lawyer, not a broker. My focus is on legal protection, not on marketing or checking radon levels, or flying a drone to conduct a roof inspection.
Brokers and attorneys must work together, leveraging our unique skills to represent and protect our clients throughout the real estate transaction process. By understanding and respecting these roles, we can better serve our clients and navigate the complexities of real estate transactions effectively.
I always have, and will always continue to, encourage parties to FSBO transactions to hire brokers. I can’t do your job and don’t want to. There are at least 105 reasons why brokers are worth what they are paid to do.
The Minchella & Associates Difference
With over 40 years of experience in Illinois real estate law, Erica Minchella has represented thousands of home sellers and buyers, landlords, and commercial and investment property owners. For more information, schedule a consultation today.
