As designated broker of S.J. Fowler/GMAC Real Estate, I am writing to thank you for your business. We hope that the purchase agreement you recently executed leads to the closing of a most successful investment. Our first concern is that you be fully satisfied with S.J. Fowler/ GMAC Real Estate and its agents; and in order for us to meet your expectations, it is important that you understand what services we can and cannot provide.
At this stage of the transaction, your agent already has fulfilled several aspects of the brokerage function by working with you to identify your acquisition goals and objectives, by identifying a specific property or properties for your consideration, and by assisting in the negotiation of a purchase agreement. While we will continue to provide assistance through the removal of contingencies and close of escrow, much of our role as brokers in this transaction already has been completed, and it is important that we share a common understanding of the scope of our involvement and responsibility in the final stages of this transaction.
While every property and every purchase agreement have their own unique features, some of the most important protections built into your contract with the seller are the inspection contingencies which provide time and opportunity for you to conduct inspections and reviews of the physical condition of the property, the income and expense of its operation, the financial condition and business prospects of tenants, and the status title and other factors material to your evaluation. Our standard form of contract provides the opportunity for you to perform a thorough due diligence investigation of the property and it is important that you do so before going forward.
The central purpose of this letter is to ensure that you understand the importance of these due diligence inspections. It also is important for you to know that these investigations will not be performed by your agent. As real estate brokers, our principal expertise is in the marketing of investment property and as intermediaries between buyers and sellers. Our agents are
not trained as real estate lawyers, tax experts, contractors or engineers. While we can provide some assistance with most of the issues you will face as a purchaser of investment property, only you can make the ultimate decisions about what kind of investigations should be conducted, to what extent and by whom, and whether and on what conditions to remove the contingencies to your purchase agreement.
One of the important factors your agent will continue to perform through close of escrow is to serve as a conduit for communications between you and the seller. In this regard, your agent may provide some of the information which you and your independent advisors will be using to evaluate the property during the contingency removal period. By and large, these documents and other information will come from the seller, its representatives or other third parties. It is important for you to remember that this information is
not generated or prepared by S.J. Fowler/GMAC Real Estate, and we are not in the position to warrant or guarantee its accuracy or completeness.
A real estate investment, like any other investment, has potential risks as well as the potential for economic reward. Each investor has his or her own risk calculus and decision-making process. A more conservative, risk averse investor (or one less knowledgeable and sophisticated with regard to the acquisition and operation of investment property) should proceed more carefully, seeking input from the appropriate professional advisors regarding legal issues, tax and accounting matters, the physical condition of the property, and questions involving the property’s income and expenses. As real estate brokers we are pleased to offer you the full range of our expertise. However, we would be doing you a disservice if we did not also inform you that you must rely on the other professionals or on your own independent evaluation.¹
Should you have questions regarding the matters discussed in this letter, or anything else regarding your transaction or your interaction with S.J. Fowler/GMAC Real Estate, I urge you to contact me directly. No agent has the authority to contradict the advice set forth in this letter; and I would appreciate you contacting me should you receive inconsistent information from any of our representatives. On behalf of the management of S.J. Fowler/ GMAC Real Estate and all of our agents, I sincerely hope that this investment proves to be most successful and that you are fully satisfied with our service.
Sincerely,
Steven J. Fowler
Designated Broker
