By Michael J. “Mick” McGirr, Esq. | Phocus Law
In the complex ballet of real estate investment, a charming cast of characters sweeps across the stage: buyers, sellers, agents, tenants, and contractors. And then there’s the often overlooked, yet equally significant, set of players – the vendors. Their roles may appear less glamorous than their co-stars, but as any savvy investor knows, they’re indispensable. It’s high time we tip our legal caps to these unsung heroes.
Vendor relations often resemble a precarious juggling act. On the one hand, you want to create long-lasting, fruitful partnerships with your vendors. On the other, it’s a business relationship, and you must protect your interests by maintaining strict timelines, firm and beneficial negotiations, etc. It’s like walking a legal tightrope while juggling burning torches – all part of the real estate investment circus.
Now, maintaining amicable relationships with your vendors is not just an exercise in charm school etiquette; it’s also a matter of legal significance. As the law looks on, with an equally charming (yet stern) gaze, you want to ensure every contract, every agreement, and every handshake (literal or virtual) passes muster.
Contractual agreements with vendors are the bedrock of these relationships. As with any contract, both parties must clearly understand the terms. If you’ve ever tried reading a contract while drinking your coffee, eating a bagel, and texting, you’ll know it’s a feat worthy of the Cirque du Soleil. So – take your time, scrutinize the fine print, and when in doubt, seek legal counsel. Many of you have heard my favorite phrase: an ounce of legal prevention is worth a pound of litigation cure.
Additionally, let’s talk about payment terms. We know discussing money can be as nerve-wracking as a root canal without anesthesia, but it’s a necessary evil. Establish clear payment terms upfront to avoid the toothache of financial disputes down the line. It’s not about being miserly. Rather, it’s about establishing a sense of trust and respect with your vendors – akin to the admiration you have for your dentist after a particularly difficult extraction well done.
In real estate investment, conflicts with vendors can occasionally sprout like unwelcome weeds. When they do, respond promptly and professionally and always keep the lines of communication open. Resolving issues early can prevent them from blooming into full-fledged legal thorny blackberry bushes.
They say an apple a day keeps the doctor away. Similarly, consistent vendor communication can keep the lawyer at bay.
So, dear investors, while executing your grand pirouettes in the bustling ballet of real estate, spare a thought (and a contract clause) for your hard-working vendors. They’re not just vendors; they’re partners. Treat them with the legal respect and business decorum they deserve.
And remember, we’re here to lend a hand whenever needed. It’s always a pleasure adding a dash of humor to the serious business of law, but don’t forget – the real joke is a contractual agreement without a proper legal review!
The Phocus Law team is here to assist with all your contractual needs. If we can be of service, please don’t hesitate to reach out at Mick@PhocusCompanies.com or by phone at 602-457-2191.