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Tips for Your 2011 Foreclosure Cleanup Business Contract to Protect You and Your Money

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Tips for 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!

Cassandra Black is a Foreclosure Cleanup Business Consultant, the Author of How to Start a Foreclosure Cleanup Business, and several foreclosure cleanup industry Guides, Reports and Forms available via Stone Cottage Books and Amazon. She is also CEO of Foreclosure Cleanup, LLC and a Real Estate Investor and Landlord. Follow Cassandra and Foreclosure Cleanup, LLC on Twitter.
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Tip: To locate your County Clerk's Office, GOOGLE phrases like "Your County Name" and County Clerk; or "Your City Name" and "County Clerk".
Help Devising a Zip Code List:  In your effort to come up with a list of zip codes in which your company does business (or in which your company can do business), use the United States Post Office's Zip Code Finder. You can find a ZIP Code by entering an address, and you can also search for a partial address, such as "Green Street, Los Angeles, CA."  Find it at this link:

Business Rules for Your State:
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D-U-N-S Number Tip: Don't "pay" for a D-U-N-S Number! Some companies charge $149 and up when they box it with other services. Getting your number is free, free, free if you are signing up as a vendor on government contract registration websites.
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Newsletter by Cassandra Black, Author of How to Start a Foreclosure Cleanup Business and several foreclosure cleanup industry Guides, Reports and Forms. Sign up as a Premium Newsletter Subscriber. You will periodically receive foreclosure clean-up job leads and consultative advice to help you grow your foreclosure cleanup business!

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