10 Quick Tips About Your 2011 Foreclosure Cleanup Business Contract to Protect You and Your Money
Foreclosure Cleanup Business Contracts Tips to Protect You, Your Company and Your Money
Many times new business owners are so eager to get the phone ringing that they forget the all important contract when the calls start rolling in. If a realtor, investor, homeowners' association officer, mortgage company, or bank calls a foreclosure cleanup business to perform a job, the first thing the business owner performing the work should do is discuss the terms of the contract. The discussion will be verbal, but the final terms should be cemented in written form: a formal contract.
The client may have their own contract, but try to use your company's contract or at least attach it to the existing client's contract as an exhibit of sorts.
The contract particulars for foreclosure cleaning businesses should, at the very minimum, include the following:
1. The parties involved and their full contact information (name, address, email, phone, other). This will include the contractor (the foreclosure cleanup business and owner) and the client -- the person and/or entity for whom the work is being performed (i.e., realtor, investor, homeowners' association officer, mortgage company, home buyer, bank, etc.). Note: If the client is a realtor, the broker's contact information should also be included on the contract.
2. The property address where the work will actually be performed.
3. The full scope of the job being completed. Include as many details as possible in this section.
4. The outlying of who will provide equipment and supplies needed to complete the job.
5. Particulars related to utilities being turned on timely for contract performance (i.e., water and electric).
6. The start date of the foreclosure cleanup job and the date of completion.
7. The price with a notation that the price will change if certain factors change (this is where an eventual "Change Order" may come into play).
8. How the cleanup contractor will be paid (i.e., check, cash, wire transfer, credit card, etc.).
9. Late fee considerations and add-ons as it relates to being paid.
10. Signatures of both parties.
This above inclusions outline minimum requirements that should be included in a contract for foreclosure cleanup businesses working with various real estate industry clients. Because the industry is real estate and the very nature of the business includes foreclosures, there are several other contractual considerations to be taken into account in drafting a foreclosure cleaning contract to protect the business owner. But, at minimum, the above should be included in the written agreement before a foreclosure cleanup owner accepts a work assignment from any client.
Many wishes of success with your foreclosure cleanup business!
NOTE: Throughout the internet and in real estate industry literature, you may see the names mortgage field services, property preservation business, foreclosure cleanup, foreclosure cleaning, foreclosure clean-outs, foreclosure clean, clean foreclosures, cleaning foreclosures, REO trashout, REO trashouts, field asset services, property field services, field service, and field services used interchangeable. The main thing to remember is foreclosure cleaning and foreclosure cleanup generally refer to smaller entities; while property preservation generally refers to larger companies.