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030: Divorce Situations in Real Estate Sales with Laurel Starks

030: Divorce Situations in Real Estate Sales with Laurel Starks

FromNAR’s Center for REALTOR® Development


030: Divorce Situations in Real Estate Sales with Laurel Starks

FromNAR’s Center for REALTOR® Development

ratings:
Length:
67 minutes
Released:
Sep 3, 2019
Format:
Podcast episode

Description

For clients who are in some phase of the divorce process, the house is often the largest asset in the case. As REALTORS® in these cases, you can help your client navigate through the real estate aspects of doing what’s best for the family and the property. Laurel discusses her work as a court-appointed real estate expert and shares helpful tips for divorce cases that are also great tips for regular listings.   It’s important to note that the court has jurisdiction over most things in a divorce case. The first thing that needs to be established is whether the court has made any specific orders regarding the house and the client; the client would be whichever person is on the title. The orders can indicate anything from the list price to certain terms defined. The house often comes into play with other aspects of the case as well.   The title company usually disperses the proceeds, but as the REALTOR®, you want to make sure the title company gets a copy of an order that dictates how these should be dispersed.   Laurel has been involved in some legal work during her real estate career. In family law, the court and attorneys are accustomed to working with experts. In her work, Laurel is a real estate expert that is appointed by the court to handle the real estate aspect of the case, making recommendations and making sure the court orders are followed. Usually, an agent on the deal would be the court-appointed expert.   When you get a client who may be recently divorced, the first step is to do an intake to gather information, like who is and isn’t in the house, any court orders, who is on the mortgage, etc. After that, you would generally want to visit the property and do a walk-through; in divorce, there is often evidence of distress. There may be opportunities for improvement so they get the most money. These should always be suggested with discretion and sensitivity for the situation. Asking probing questions to get more information may be uncomfortable, but as REALTORS®, you must own your professionalism. You can’t best help your clients without all the information.   Proactive communication is especially important in these cases. When it comes to education, it’s really important to take the position of not being attached to the outcome. It’s not about trying to get them to list the house, it’s about giving all the information so the family can make the best choice for them. Communication helps establish trust and neutrality.   In Laurel’s practice, when they do the intake and the walkthrough, she never meets the clients twice. She meets with the parties separately and will alternate appointments. You want to avoid having too much communication with one client to make it look like you’re taking sides. Each situation will be different, but it’s important to gather all the information so you are considering both person’s needs. Laurel shares some best practice tips for when it comes to communicating through emails.   In these situations, it is very common to have pacing issues. One spouse may be ready to sell the house and get everything done, while the other is still grieving the loss of both their house and their marriage. You may have to slow down and get the other spouse on board before you get too far.   When getting a lawyer involved, you want to keep them reasonably updated, but don’t bombard them with too much communication. Some things to update lawyers on: when the listing agreement has been signed, the terms, once the house is on the market, when the house is in escrow, and when they are ready to close. Don’t involve the lawyers unless you absolutely need to.   There are some things to prevent early on in a divorce listing. Make sure you know who all is on the title, and make sure the title will respect a Power of Attorney in the situation that the client themselves is unavailable. This is helpful even for a regular listing. You also want to check loan payment amounts that may be affected by previous loan modification
Released:
Sep 3, 2019
Format:
Podcast episode

Titles in the series (98)

NAR’s Center for REALTOR® Development podcast focuses on education in the real estate industry and is hosted by Monica Neubauer, an award-winning industry leader, speaker, and instructor based in Nashville, TN. The podcast discusses formal and informal sources of industry knowledge, including NAR education and credential programs. This podcast is for REALTORS®, REALTOR® associations, real estate and allied professionals, real estate educators, education providers such as schools, and consumers.