Fine Print

Regardless of your industry, one of the most important people you need in your corner is a good attorney: someone who understands how you do business and your expectations of others. I come across many professionals who sign documents without reading them. I’m not talking about the standard disclaimers where we have to check the box to use a product or an app. Does anyone read the Apple user agreement before signing that they’ve read it? I’m talking about the contract you sign that directly impacts your business. Too often, I have had agents who wanted to join my firm only to be handcuffed by a past agreement they forgot they signed or were unaware of the restrictive contents.

When I first became an agent, there were no written agreements. I met with the Senior Director of Sales (those of you early in the industry will remember Alan - a stand-up chap and consummate professional), and we agreed to my split and terms (which comprised only of my split), shook hands, and we were done. I trusted that when I received my commission check, my split would be at the agreed amount. And for the next nine years, it was. I trusted Alan, and he was a man of his word. No documents. No written agreements. None needed. This was the way I understood the world worked. I was taught at home, at school, and by mentors that “your word is your bond.” If you say you were going to do something, you do it. If you make a verbal agreement, you stick by it.

Nine years later, and two weeks after the company changed hands, Alan was no longer at the helm. I had an issue with a commission check. It was missing 10% of what was due to me. The new company head established a new policy to deduct administrative and design fees from future commissions. My handshake was void, and they handed me an agreement to sign.

When I started my company, a good friend said something that, in my na?veté, I thought was absurd. He said, “if you’re in business long enough, you will be sued and forced to sue for monies owed.” We live in a world where you can sue and be sued for almost anything, and in real estate, this happens a lot. After owning my own business for more than two decades, I’ve experienced this firsthand. I have won cases I should’ve won, and lost cases I should have won. Sometimes, I have sued for commissions and won, only to have the damages pay my attorney’s fee. I have also made business decisions to let owed money slide by and not sue for them because of more significant financial and political reasons that forced my hand.?

There’s a reason why top attorneys make bank. They are very sophisticated in crafting language that will protect the client and foreshadow any potential unforeseen issues that may arise down the road. The best agreements are those that most accurately capture the spirit and intent of the business terms. If you find yourself in a position where the agreement process is too arduous and has drifted away from the original plan, ask yourself if it’s still worth engaging with someone who wants to put you in that position. It’s usually a sign of things to come. Find yourself a great attorney who can memorialize the intent, protect you and understand the fine print before you sign on the dotted line. Your attorney ultimately represents your brand, and she should be on the same page as you.?

But most importantly, work with a mensch like Alan with whom you can shake hands and trust that they will act honorably. It’s better than any document you will ever sign.

Let’s do this.?

Danielle