Transaction coordinators manage complex real estate closings, with a single deal involving dozens of pages of contracts and disclosures, tight deadlines, and legal requirements.
When agents attempt to handle the entire contract process on their own, a single misstep can jeopardize the whole transaction, resulting in costly delays or even a canceled deal.
This is where a transaction coordinator (TC) becomes invaluable, as they help prevent such errors from occurring.
In this article, we will highlight 7 common contract errors that real estate agents make and how working with a transaction coordinator can help prevent them.
7 Contract Errors a Transaction Coordinator Prevents ⚠️
Here are 7 of the most common contract mistakes agents make when they don’t have real estate transaction coordination support.
1. Missing Signatures and Initials
This is one of the most frequent and frustrating errors. In the rush to submit a contract, agents can easily miss a required signature or set of initials.
While it may seem like a minor oversight, a missing signature on a critical document, such as the purchase agreement, an addendum, or a disclosure form, can render the contract legally unenforceable.
- The Problem: Documents can have multiple pages, and forms can have tiny boxes that require initials. If a page is accidentally skipped or a signature block is missed, the document is incomplete. This often occurs in high-pressure situations, such as a multiple-offer scenario, where the agent is rushing to get the contract to the other party.
- The Solution: A transaction coordinator’s primary role is to act as a second pair of eyes. They thoroughly review every page of every document to ensure all parties—including the buyer, seller, and even the agent—have signed and initialed every required spot. They use checklists and digital tracking tools to make sure no signature is left behind.
2. Missing Disclosure Documents
In real estate, disclosure is everything. State laws and local regulations require sellers to disclose known defects or potential issues with a property.
The failure to include these disclosures promptly is not just a contract mistake; it can expose the seller and the agent to significant legal liability.
- The Problem: Multiple disclosure forms may be required, ranging from a standard Seller’s Disclosure to specific lead-based paint, flood zone, or HOA disclosures. An agent working alone might forget to include a particular form or fail to obtain its signature and delivery within the required timeframe, which could constitute a material breach of the contract.
- The Solution: A transaction coordinator maintains a master checklist of all required disclosures for each type of property and location. They ensure every relevant form is sent to the client, signed, and included in the contract package. They also track the delivery of these forms to the other party, creating a clear audit trail that protects everyone involved.
3. Incorrect Property Legal Descriptions
The legal description of a property is the most crucial element of any real estate contract.
It’s the official, legal way of identifying the land being sold. Using the wrong description can lead to a contract being voided or cause significant headaches for the title company, which relies on this information for a clear transfer of ownership.
- The Problem: Many agents mistakenly use the property address as the legal description. While the address is necessary, it’s not a legal identifier. The legal description can be a complex series of plat numbers, lot and block numbers, or metes and bounds descriptions. Copying this information incorrectly or using a partial description can lead to errors that a title company will flag, causing delays.
- The Solution: TCs are trained to double-check the legal description against public records. They catch errors, ensure the full description is included, and work with the title company to resolve any discrepancies before they become a significant issue.
4. Poorly Worded Contingencies
A well-crafted contingency is a lifeline for a client, providing an escape clause if certain conditions aren’t met.
However, if a contingency is poorly worded, vague, or contains an unrealistic timeframe, it can be unenforceable. This leaves a client vulnerable and trapped in a bad deal.
- The Problem: Agents might use generic, vague, or incorrect language for contingencies. Without clear language, it’s difficult to prove a breach of contract, and the client’s interests are not adequately protected.
- The Solution: A transaction coordinator works with the agent to ensure all contingencies are clear, specific, and have realistic deadlines. They can provide standardized, legally approved language for common contingencies and ensure that the agent has included all the necessary details to make the contingency effective.
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Real Estate Transaction Coordinators
Hand off your transactions, media, and marketing to a real estate TC.
5. Missing Dates
Dates are the lifeblood of a real estate contract. They establish a timeline for every critical event, from the expiration of the offer to the closing date.
Missing or incorrect dates can throw the entire transaction into chaos.
- The Problem: An agent might forget to include an offer expiration date, leaving the offer open-ended and the client in limbo. Alternatively, they might forget to specify a due date for a critical document, such as the appraisal report. Without these timelines, the contract can fall apart, as there’s no way to hold the parties accountable for meeting their obligations.
- The Solution: A transaction coordinator creates a detailed timeline for every deal. They track every single date—from the contract effective date to the inspection period, appraisal deadline, and financing contingency—and send reminders to all parties involved. This proactive approach ensures nothing is missed and keeps the transaction moving forward smoothly.
6. Required Fields Left Blank
Real estate contracts are filled with fields that must be completed to be valid.
Skipping a required field may seem like a minor detail, but it can create significant legal and procedural issues.
- The Problem: Agents may leave a field blank if they don’t have the information yet, such as the exact amount of earnest money. However, a contract is not a draft; it’s a legally binding document. Leaving a required field blank can be interpreted as a failure to reach a meeting of the minds and could be used to argue that the contract is void.
- The Solution: Transaction coordinators use their expertise to recognize which fields are essential. If a piece of information isn’t available, they work with the agent to obtain it or correctly note the reason for the omission, ensuring that no one can later claim the contract is incomplete.
7. Overlooked Home Warranty Details
Home warranties are a common element in real estate contracts, particularly for resale homes. They can be a significant selling point and provide peace of mind for a buyer.
However, if the home warranty details are not adequately addressed, it can lead to a last-minute scramble at the closing table.
- The Problem: An agent might include a note that “the seller will provide a home warranty,” but fail to specify the company, the cost, or what the warranty will cover. This seemingly small detail can lead to a dispute between the buyer and seller. This miscommunication can cause tension and delays right before the closing.
- The Solution: A transaction coordinator ensures that every detail of the home warranty is specified in the contract. They confirm the name of the home warranty company, the cost of the policy, who is paying for it, and any other relevant details. This precision eliminates ambiguity and ensures a smooth, conflict-free closing.
As you can see, a transaction coordinator is a valuable business partner for real estate brokers and agents.
As we conclude, let us recommend a source for outstanding and precise transaction coordinator services that will help you avoid mistakes while not draining your bank account.
Market Leading
Real Estate Transaction Coordinators
Hand off your transactions, media, and marketing to a real estate TC.
AgentUp: Precision Transaction Coordinator Services 🎯
Grow your real estate business with AgentUp’s precise and error-free transaction coordination services.
We are a premier provider of TC services designed to bring unmatched efficiency and value to real estate agents. Our expert team ensures your closings are precise and error-free, empowering you to succeed.
We currently offer our TC services in the following states:
- Washington
- Oregon
- California
- Florida
- Georgia
- Virginia
- Maryland
By managing every step from the initial contract to the final closing, we provide a completely stress-free and smooth experience.
There are many reasons to choose Agentup, including these:
| Precise and Smooth Transactions: We manage every step of the transaction to provide a completely stress-free experience from contract to close. |
| Expert Team: Our coordinators undergo an intensive 40-hour U.S. real estate training program, so they bring the market knowledge and reliable support you need to succeed. |
| Quality and Value: We provide top-tier service at a competitive price, ensuring quality is accessible and affordable for every agent. |
| Secure Technology: Our customized platform is built with security in mind, ensuring smooth closings and organized, accessible documents every time. |
Additionally, AgentUp makes premier real estate transaction coordination easy to afford with our budget-friendly rates:
- Transaction Coordination – from $399 per file
- Listing Coordination – from $249 per listing
We not only excel at transaction coordination – we also offer innovative and effective real estate marketing solutions.
Outstanding Real Estate Marketing With AgentUp
AgentUp offers real estate professionals unmatched value with our cutting-edge digital marketing solutions.
With over a decade of experience in marketing, communications, and digital expertise, our team crafts custom tools that engage clients and give properties a distinctive appeal.
Our marketing tools help agents stand out by blending bold design with strategic expertise, including:
- Virtual tours
- Property websites
- Home flyers
- House portraits
- AI real estate photo editing
- And virtual staging
Our skilled and experienced team ensures your closings are precise and error-free, while our marketing solutions produce results that help you succeed.
So, why wait? Take the first step toward business growth and higher sales today.
Call and speak with an AgentUp TC at (888) 982-4368 or schedule a free TC consultation.
Also, sign up for a free AgentUp account today and explore all that we offer — it’s free and takes less than a minute.
We hope this article explained the common contract mistakes agents make without a transaction coordinator. Before you go, check out these additional related posts:
- The Cost of Not Hiring a Real Estate Transaction Coordinator
- Why Solo Agents Need a TC Coordinator More Than They Think
- 5 Red Flags to Watch for When Hiring a Transaction Coordinator
- How to Scale Your Real Estate Business With a Transaction Coordinator
- From Chaos to Clarity: How a Transaction Coordinator Streamlines Real Estate Deals
