Fortunately, the practice
of allowing payment at closure is illegal in Texas. That said, I always insist on Cash On Delivery.
Probably 50% of our real estate work is paid at closing by the seller or 30 days if things are getting drug out. If the deal falls through or closing is delayed the 30 days gives them enough time to borrow the money to pay us. We don't work for the buyers, if the deal falls through they have nothing to lose if they just walk away knowing that it would be too expensive for use to spend the money to go after them. Most of those people couldn't come up with the money until they close on the deal. In ten years we've only had to have our attorney send a letter to the home owners one time and they quickly coughed up the money plus the late fees which paid the attorney. We have one broker who hires us direct and she pays within a week of the closing date if things fall though.
I wouldn't get much work if I didn't front these people but I charge for using my money just like anyone else would. Our attorney has us on a 30 day time frame, our contractors we use give us 30, the supplier we use is 45, hell the doctor I go to will give you 30 if you pay $5 before leaving the office and set up payment. Accountants,Vets & grocery stores are the only pay before you leave services we deal with. The guy who sold us our Polaris Ranger gave us 30 days before we had to settle up. I guess we live in a different world.
My Response...
I think that's perfect.
I will have my fee up front. I will have a contract with the LAND OWNER of record. He can pay me and make any agreements with others for reimbursement based upon any conditions he wishes.
We'll pay you when it closes means, we'll pay you IF it closes.
In Florida, all of the standard real estate sales contracts state that the buyer is responsible for the payment of the survey.
I would be agreeable to fronting the money if I were dealing with people that I know and can trust. But when you are dealing with buyers, lenders, real estate agents and title companies, most of which you have never heard of before or probably never hear from again, its just not prudent.
My Response...
Excellent! Almost exactly what we say to people ordering work every day. It works! Stick to your guns on it. Wanting to pay "at closing" is BS. It's a way to weasel out of their bill if the don't buy.
Good job!
I thought Andy J had this nailed down:
> Require credit card info up front. If they don't close, say, within 30 days, you charge the credit card.
Thanks!! I will run the card as soon as the survey is complete. For a few exceptions, I might let the fee be taken at closing.
It works and it puts the onus of paying for the service where it should be, with the person gaining from it.
Andy