Page 65 - Success Guide

Sample Letter:

CONFIRMATION OF CONVERSATION

NOTICE TO AGENT OR BROKER:

The attached sample letter is being made available to you as a courtesy by the California Association of
Realtors® ("C.A.R."). C.A.R. does not represent, warrant or guarantee the adequacy of the provisions
contained therein as it relates to any specific real property or real property related transaction or event. It is up
to you to decide whether the letter is appropriate for your situation and whether or not to sign the letter and
send it to the person to whom it is addressed. The letter is not intended to replace or serve as legal advice.
Before making the decision on whether you should sign and send this letter, you should first discuss the
situation with your broker, office manager or brokerage firm counsel.

Letter-Specific Instructions:

Purpose: This letter can be used anytime the broker or agent seeks to document in writing the substance of an
earlier conversation with another agent, broker or buyer or seller. Optional preprinted language has been
included to cover common situations. However, since there are many other situations where this letter may be
useful, space has been provided to write in the exact circumstance. A contemporaneous correspondence
made in the normal course of business may have evidentiary value in law. However, the significance of any
letter confirming or documenting an oral conversation will vary.

Warning regarding agreements between licensees to pay compensation: An oral agreement between
licensees to pay commissions is enforceable, if it can be proved. Note, however, that an agreement between a
broker and a principal is only enforceable if in writing and signed by the principal. While a contemporaneous
letter seeking to document the oral agreement may provide evidence of the oral agreement, if possible, a better
practice to document the licensee-licensee agreement would be to use a standard form such as the
Cooperating Broker Compensation Agreement and Escrow Instructions (C.A.R. form CBC), the Referral Fee
Agreement (C.A.R. form RFA) or Agent Commission Sharing Agreement (C.A.R. form ACS), as appropriate.

Warning to agents and brokers regarding agreements on behalf of their principals: All of the C.A.R.
purchase agreements require the purchase agreement itself or any modification, extension or amendment of
the agreement to be in writing and signed by the buyer and seller. It is therefore incumbent on the broker or
agent to recognize that any agreement between themselves on behalf of the buyer and seller to modify a
purchase agreement is not necessarily legally binding on these principals unless signed by both buyer and seller.

BHHS Perrie Mundy Realty Group & California Realty 1440 Industrial Park Ave. Redlands, CA 92374 Phone: 9095286276 Fax: 9095286276 Week 8 Writing
Michele Herring Produced with zipForm® by zipLogix 18070 Fifteen Mile Road, Fraser, Michigan 48026 www.zipLogix.com