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Top Tips for Real Estate Transaction Coordinators: Document Checking to Avoid a Lawsuit

Transaction Coordinators play an important role in real estate transactions. Being organized and paying great attention to detail is critical to your success. You need to stay on top of high volumes of paperwork and ensure all the transactions you manage keep on track. 

If something does go wrong, a Transaction Coordinator might face a lawsuit. This can be costly to defend and can be a long and stressful process. 

Here are some useful strategies for Transaction Coordinators for document checking to help minimize risk and the chance of a lawsuit. 

Document Checking Strategies for Transaction Coordinators

1. Use checklists and templates for common tasks

Transaction Coordinators do many tasks multiple times a day for various transactions. Creating checklists and templates for these frequent tasks can boost efficiency. They’re also useful prompts, so something isn’t forgotten during the transaction process and during busy times. 

Checklists should include:

  • Key tasks and responsibilities 
  • Dates and important deadlines 
  • Any required notifications and communications to stakeholders of the transaction (eg clients, lenders, real estate licensees). 

2. File as you go

It’s not uncommon for Transaction Coordinators to be working on multiple transactions simultaneously. To keep documentation well-organized and complete, “file as you go.” Collected some paperwork for a transaction and ready to move on to another task? Make sure the paperwork is recorded in the correct file before getting busy on something else. Great filing is not only needed to ensure an efficient and accurate transaction process, but you may also need it if faced with a lawsuit situation in the future. 

3. Daily planning

It takes a special collection of skills to be successful as a Transaction Coordinator. Take some time at the end of each day to plan the following day, to ensure you can keep on track and achieve everything you need to. Some time management coaches suggest blocking out times you will use for appointments (for example, scheduling all meetings in the afternoons), instead of randomly scheduling appointments throughout the entire work day. This allows significant blocks of time to schedule deep work that requires your full concentration at times that best suit you. If you’re a morning person, this might be the first 3 hours of work in the morning.

4. Set up workflows

A Transaction Coordinator’s best laid plans can be disrupted by other parties to the transaction. Set up documented workflows, so you can keep track of any hold-ups with paperwork and signatures. Schedule follow-ups in your calendar, so that any delays are chased up in a timely manner. Another time-saver is to create email templates for these commonly used follow-ups. 

The Consequences of Mistakes in Document Management 

If a Transaction Coordinator makes an error that delays closing, it can be costly and result in a lawsuit. Common errors include incomplete paperwork, or missing signatures, amendments or addendums.
A Transaction Coordinator may also be sued if something goes wrong, and you don’t have the required paperwork to defend yourself. For example, proof that signatures were verified, or inspection reports filed. An accurate transaction file can help to prevent claims, and it’s invaluable when defending them. 

A Transaction Coordinator’s best defense is a well-documented filing system. This goes for real estate licensees as well, which is why they will often engage a Transaction Coordinator in the first place — to ensure it’s done correctly. 

Insurance for Transaction Coordinators

If you’re a Transaction Coordinator, you need to have Transaction Coordinator errors and omissions insurance to protect your business. This will help you to defend a lawsuit if you find yourself facing a claim. Not all E&O policies are created equal. CRES E&O + ClaimPrevent® insurance offers premium coverage. Access to qualified legal professionals is also included, so you can prevent claims before they become costly lawsuits. 

When choosing an insurer, you want to deal with a specialized real estate insurer who understands your business and what you do. CRES insurance policies are fully customizable and can be tailored to suit the unique needs of your real estate business. Want to know more? Get in touch with the CRES team at 800-880-2747 for a confidential discussion today.

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