I have been working with the same title company for a few years. The guy that owns the company is a good friend. There have been little mix ups from time to time....no, that's not right....on most files. I have tried to just let it go. I caught them before it was too late. No harm done.
Today's little mix up was that the buyer was paying the commission on top of the purchase price, according to the HUD. The HUD had been sent to my attorney, the lender and the lenders attorney, plus me.
I have been prospecting the attorney that had me engaged for over 3 years. He pushed me on his client, a large commercial lender with a ton of potential business. The transaction went wonderfully. I looked great. Now, one of my vendors makes a silly mistake that makes me look bad. I am hearing from others "how can your guy make such a dumb mistake, Rich?" I'm thinking "good question"
I had no choice. I had to pull the deal from him. I had to look out for my business and I had to take corrective action to keep the client. As sorry as I was; as bad as I feel; it had to be done.
Within 30 mintues the attorney-manager of a multi-branch title company was sitting in my conference room. I called his office, was transferred to his cell and he drove over to my office instead of going to his. I guess he wanted the business. I met him at a conference he sponsored on distressed property where I told him I was happy with my current vendor, by the way.
This experience brings three things to mind:
- Your best clients will leave you at the drop of a hat if you screw up
- There is always someone there to accept their business
- You never know where you are going to meet your next client, vendor or partner so keep alert.
You know, I'm not mad at anyone for the mistake. I am disappointed. There are a lot of other things I would have liked to do today, but I needed to be a business owner.
Do you have questions about distressed assets, receivership or bankruptcy sales, auctions? Email me at rfk@gryphonusa.com and I'll try to answer it in an upcoming post.
Richard F. Kruse is the President of Columbus, Ohio based Gryphon USA, Ltd. (www.gryphonusa.com). The Gryphon Organization includes Gryphon Asset Management providing receivership and consulting services in the distressed marketplace, United Country Gryphon Realty & Auction Group (www.ucohiorealty.com & www.ucohioauctions.com) providing real estate brokerage and auction services throughout Ohio and OnlineAuctionUSA.com (www.onlineauctionusa.com) providing commercial asset liquidations from the Midwest to East Coast.
United Country Gryphon Realty & Auction Career Opportunities Available. Call 614-885-0020 x 17
Unfortunatly in this case the known entity was the problem. We would not normally switch vendors, particularly in the middle of a deal, but to continue with someone who was making such glaring mistakes, makes our company look bad. Better to acknowledge the problem and be proactive to fix it than to continue on the same course.
Olive - maybe representative of the martini that I needed after today??
David - I had a long response to this that addressed your and BB's position. It deleted (spelling?). I agree with both of you.
I didn't do what I wanted to do. I did what I needed to do. I feel like crap. I feel like I screwed a friend. I feel like I did what was best for my business and my family.
If Mr. Title called right now and asked for the shirt off my back, he would get it. If he asked for the closing he would not.
Maybe this is another blog: What is harder? Loyalty or Betrayal.
Another question. Is this betrayal?
I have to agree with Leigh. If this causes Title company to look at what is going on internally and make changes, I'd love to go back to them. This may be the wakeup call that they need.
Rich, I agree with your wife and Bryant... and Leigh even brings up a good point. I have seen this type of move make someone wake up. Then again, some people just don't care or pay attention... sad, but what can you do. You need to keep your clients happy.
Yes, I am very loyal and expect the same. And if I were to make mistakes, I would want to be told about it.... look at it, review it...try to figure out why. All I ever ask anyone that I work with.... let me know, it's not personal. It is business...
Rich,
It's a sad story, but we've all been there.
Like Jeff I normally use the same people as much as possible, due to the nature and volume of business we've used a lot of people over the years.
I've been using the same two escrow ladies for over 18 ears, although they have gone through 4 or 5 title companies during that time, at least one change was because I had them recruited after some major troubles with a tirle plant. They get about 1/3 of my business.
My primary appraiser I've been using nearly 15 years. She gets about 60% of my business.
I get great service, but they know one lie and I'm gone. I had problems with one title company and two hours later the head of the largest title company in our market hired my favorite escrow office in part to get my business.
I'm very tolerant of small correctable mistakes, but not repeated or deliberate problems. One of the nice thing about a well know team is we always try to make each other look good. But, don't fool with my clients!
Bill
William J Archambault Jr
The Real Estate Investment Institute
http://www.reii.org
it's such a cautionary tale as a small business owner to hear this. and it's so true that there is always someone waiting behind you to push you down and ready to take your place. i think in our industry has such a fluctuation, sometimes retention is very difficult. and sometimes relationships are not enough. but thanks for reminding me this important lesson.
cheers,
cindy
i stage & redeisgn to sell, live and work in san francisco bay area cindy@staged4more.comwww.staged4more.com
http://stagingtipsandmore.blog.com/
"Rich aka Delicate and Melissa aka The Other Lovely Wife"
You must protect your good name.
Your name and reputation in this business are everything. Once it's ruined it can not be undone.
In my opinion you guys did the right thing, even if he was your friend.
If he is a real friend then he will understand that your livelihood must comes first.
TLW "The Lovely Wife"...These Are Hard Decisions To Make...ROAR!
No brainer. ALL parties have to work in unison and 'error free' for the transactions and future referrals to flow. The goal is to meet the buyer and seller's needs, not to give business to a friend. Now if the friend can meet the goal, that's different. The goal is the key.
My Title company is in 'constant' communication prior to any closing to make sure the Realtor and Lender sides are always in sync with status.
Surprises at the table are of course a disaster (but solvable with a smile), but repeated mistakes that you are 'catching' does not bode well for the talents of your friends company.
I would have dropped them as I expect any of my clients would do to us. We take the philosophy that we HAVE to be better to earn business, thus are always in a continual improvement mode looking at Preventive Action versus Corrective Action.
Rich,
I think too that your friend might have just gotten too comfortable with you. You yourself said that it was not the first time that he messes up. But he might have just felt to himself not to worry, Rich will understand - naturally, not at the cost of losing a deal. He might have taken your relationship for granted a bit. Does he treat his other customers this way? Would he have double check their documents? Making sure all that needed to be done was done correctly? I say, give him yet another try on smaller deals to let him see that there are no hard feelings. Explain to him that if he should mess this one up, then your business relationship with him will end. Keep this in writing and just say to him as was said before, it's business - nothing personal!
Rich,
In reading your BIO I noticed you deal in pre-foreclosure properties and we have done very well in this area using the Short Sale process along with the Auction method in helping agents and sellers in selling a property that otherwise may look un-saleable.
Another difference is we use an Attorney for closings, our Attorney provides the same service a Title Company does, only we receive referrals from him when his clients are faced with a pre-foreclosure or financial crisis situation concerning their property.
I feel that utilizing his services has more than paid for itself in referrals alone, only mentioning this as another avenue to look at.
Alas, there went Jason, a really nice guy, but our clients were dropping through the cracks. Fortunately, there were mortgage agents stacked up for our business.
I really liked Jason, hell I still like him. I hope it works out for him. He left as the in-house lender. Seems there were more clients than just ours dropping through the cracks.