I recently closed a buyer side transaction that was challenging to say the least. We repeatedly asked the listing agent for documents to be signed and returned to us and she either gave vague answers that she would do it or ignored our requests.
I was going to chalk her up to being a "D+" agent, however as soon as we received confirmation that the loan had funded, suddenly we received a bankroll of documents.
I can't help but thinking that she was holding the paperwork hostage until the loan funded.
I don't like holding paperwork hostage. I do it ONLY AS A LAST RESORT.
Let me explain the process;
If you are sending, sending, sending completed paperwork to the other side in a timely and cheerful manner, you expect the same treatment back. Sometimes, the other agent is busy or inconsiderate and as a result, we don't get what we deliver. So what's the big deal?
In order to be BRE and Broker compliant, we MUST have a completed file at the same time we record. File auditing for completion takes time, especially if you're a busy agent or coordinator. (On average, a transaction audit can take up to 1.5 hours!).
I appreciate it when paperwork is delivered back allowing me plenty of time to audit the file and request additional items for signature prior to close.
If you have requested the documents multiple times and the agent is not responding, THEN it may be time to hold paperwork hostage. In other words, you're not sending over another scrap of paper to her until they deliver documents back to you!
This strategy usually works because;
- That agent also has a broker who most likely wants a complete file at close
- The agent won't be paid unless they have a complete file
- The agent suddenly realizes that she hasn't sent anything over to you and understands the game
Holding paperwork hostage just because it's part of your process for transaction management WILL cause your team to resent you, and wastes everyone's time and energy. It's a HOSTILE strategy so use it judiciously and with GOOD reason.