14.6 Documentation of Disclosure

As is apparent, the Company advocates full disclosure in appropriate circumstances. However, all the disclosure in the world does no good if it cannot be proven. While it would be ideal to have every single disclosure as to every material item disclosed to the parties in writing with their acknowledgment of the disclosure, such is not usually possible.

The Company preferred policy is to have a written disclosure and acknowledgment as in the case of a “Transfer Disclosure Statement.”

Recognizing that this ideal cannot be attained in every situation, the policy of the Company is that the agent should document in his/her own personal notes and files each item which is disclosed in a transaction.

This simple policy can reduce risk and potentially save many thousands of dollars. It assumes that the agent has a regular, systematized method of organizing and keeping files. This is vitally important to a good documentation procedure.

The Company requires all documents to be uploaded to its online transaction document system for record retention and compliance. Agents are required to use this organization system as it has been developed to keep track of details, act as a transaction checklist and risk reduction method.

Disclosure is great, but documentation of the disclosure is the glue that seals the cracks.