Statewide Forms Are Good Practice

In our Internet age, consumers often feel they can complete their real estate transaction without a real estate agent. Where they may run into problems, however, is with the forms – especially if those forms are exclusive to the state's real estate Association.

If access to forms is an exclusive benefit of membership in a state Association, consumers cannot use them. State Associations work with reputable vendors, such as zipLogix and Instanet, to provide forms. These vendors have developed their systems to authenticate identity with the state Association roster before allowing access to forms. This means that, if the person attempting to use the form is not a member of the Association, they cannot access it. This protects one of the primary benefits of REALTORS®.

"Forms providers like zipLogix are a sort of positive watchdog, protecting agents, brokers, and Associations," explains Victor Lund, RE Technology CEO and founding co-partner at WAV Group. "Their technology protects the sanctity of the state forms, promising agents that the forms are legal and promising Associations that only agents will have access."

Exclusivity isn't the only benefit of statewide forms. There are quite a few other reasons that statewide forms are good practice:

• Consistency. Today's broker often represents consumers in a variety of markets around the state. You don't want to be training and supporting agents on multiple versions of the forms. And whenever you have multiple forms, you have a situation where things can get confusing and possibly risky. This is something you want to avoid, especially with documents you need to close transactions with airtight legality. The solution is consistency – and that consistency can come from statewide forms.

• Support. Some state Associations, such as California, support their forms in court. They also have a legal help line if questions arise.
• Training. Most state Associations go further than just supporting their forms when there's a problem. They try to prevent problems by developing training programs for agents and brokers on how to use the forms.
• Legislative protection. Statewide forms are frequently developed in concert with lawmakers. This allows them to protect consumers more effectively.
• Strength in numbers. When everybody is using the same form, it's much more difficult to argue that it isn't legally binding.
• Avoiding attorneys' fees. Imagine if every real estate broker had to pay an attorney to draft all forms and then to support those forms when they went to court. That would be incredibly expensive.

Can you rely exclusively on statewide forms? Not likely. You'll always have some forms from your local jurisdiction. What we're suggesting is that you don't go rogue and create your own forms. That's not the place to differentiate your brokerage. Instead, focus on branding your marketing collateral effectively, recruiting the best agents, and offering the most advanced technology available.