Search Results for: estate sale contract

Estate Sale Contracts – Important Basics

Estate Sales NewsThe most important topic reviewed by sellers and estate sale liquidators on Estate Sales News is the estate sale contract.

For the benefit of sellers and estate sale companies we present some of the topics of concern to both. Clarity in an estate liquidation contract can prevent misunderstandings and reduce stress. Estate Sales News is not an attorney and we do not give legal advice. The information presented is based on 25 plus years of estate liquidation experience. Please consult an attorney for legal advice or contract legalities.

Next to some areas you will see the word “initial”. This is to insure that all parties have read and agreed to the content of the paragraph. That way all parties are working on the same “page” so to speak.

  • The contract should be dated and contain the dates and times of the estate sale or event.
  • It should also contain the complete address of the sale.
  • The contract should clearly state who the seller or responsible party is (whether it is an attorney acting for the estate, heir, family member, or even a Realtor).
  • The contract should specify that the property has electric and water and working plumbing that is available before, during and until the estate sale is over and the estate sale company has vacated the property entirely. This is for safety of all and sanitation. “initial”
  • Following this section would also be the place to include snow or ice removal and who is responsible if that is an issue in your area. “initial”
  • The next section should be specific about the commission or fee that is to be paid from the gross proceeds ( percentage or amount) at the end of the sale. If the liquidator works on a minimum fee this should be in this section as well. “initial”
  • The next section would deal with cancellation of the sale. This depends on the estate sale company, however, many contracts include a cancellation clause with a specific fee. If work has been done by the estate liquidator and staff and advertisements have been made they should be compensated for their time and expenses. Each company operates differently. If the contract has this clause “initial”.
  • Next would come advertising and who is responsible for payment of the ads.

At this point in the contract it is advisable to let the seller(s) know that the company will make all possible attempts to achieve the best possible financial results, however, they cannot make any guarantees of the prices or of the gross sale total. An estate liquidation company cannot control weather, attendance, market conditions or other competition in the area. All they can do is make their best effort and that is why sellers, it is up to you to make your estate liquidator choice having done your do diligence to find the estate sale company you feel will be the most successful and professional. As a seller you have a responsibility to so make sure you take time to research, become informed, and make the best choice possible.

Please note that every estate liquidator chooses a contract that works for them. There is more for our discussion on Thursday, however, many contracts from estate sale companies will contain more and many may contain less.

Estate Sales News is here as a resource. Some may agree others may not, but getting out matters of public concern and interest as well presenting the views and concerns of estate liquidators and sellers is what this news magazine is here for.

It is important that all parties understand their responsibilities and obligations.

Preventing stress and tension between sellers and estate liquidators during this process is important.

 

Video Discussion About Estate Sale Contract Session At Conference

This video chat is about the session we will moderate about estate sale contracts at the 2014 Memphis Estate Sale Conference starting in two weeks sponsored by EstateSales.Net. The video was done in a hotel lobby so please accept my apologies for the sun glare.

Estate Sale Contract Cancellation Can Be Costly

contract requirementsEstate sale companies have contracts for protection of sellers and themselves.

Along with the date of the contract, dates of the sale and location and cost to the seller, most estate sale contracts include a cancellation clause.

Estate Sale companies put in a lot of time researching, writing and placing ads in print media and the internet, utilizing social media, Facebook, Twitter, and Pinterest. Social media can be very time consuming and very beneficial to bring in buyers. An estate sale company puts your sale on the calendar and may turn away other business to conduct your sale.

They also have costs involving staff before the sale including staging and pricing.

When a seller decides to cancel a contract after the process has begun, like any type of business costs have been incurred and a fee is usually do. Each estate sale company sets their own policy and fee, but it is not unreasonable to charge a seller. Many estate sale companies now take legal action to enforce this clause especially if they lost other business.  It is a contract and agreement for performance from both parties.

If you have any doubts about an estate liquidator, don’t sign the contract until the doubts are resolved or you decide on another company.

Just as an estate sale is a financial transaction for you, it is business for the estate liquidator.

Estate Sale contracts – For sellers and estate sales companies

sample contractEstate Sales News is receiving a lot of feed back on estate sales contracts from sellers and estate sales companies so we would like to address the most important issues pertaining to both the perspective seller and the estate sale company.

 

 

 

Let’s start with the perspective seller:

  • Once you have chosen an estate liquidator make sure you have a written contract.
  • It should be specific about the commission or fees.
  • Date of the sale and how and when you will be paid.
  • It should spell out exactly when you will owe a commission. Do not expect an estate sale company to agree to conduct a sale after they have photographed and  started their work without charging you a commission if you pre-sell or withdraw items after the contract is signed and before the sale. Like any other business they have started to work for you and advertise. It is your obligation as a seller to either sell or withdraw items from the sale prior to the signing of a contract. Then the estate sale company has an opportunity to decide whether the contents left will warrant their accepting the sale and they can advertise accordingly. Most estate sale companies will include a clause that says once you sign if anything is removed or sold by you then you will owe a commission on those items.
  • If you are truly not sure about a few (“key word being few”) items then include them on an addendum.
  • An estate sale contract is like any other contract. It is an agreement to perform for both parties.
  • If you are selling a property and the new purchasers are interested, you should inform the estate sale company prior to signing a contract and decide who would best serve your interest. Emotions can sometimes be costly so it may be financially better to let an estate liquidator negotiate for you.

The estate sale company:

  • Your contract with sellers should include several things, including the commission or fees to be charged, dates of sale, what happens when items or sold or removed after the signing of the contract, a cancellation clause, how you will pay the seller and account for items sold, if you charge the seller for advertising or if the seller is paying for the advertising.
  • You should also set out your ground rules. Will you conduct the sale if the seller is present, what about the cleanout, any additional expenses, and very important if the seller sells or withdraws items after the signing of the contract will they be charged and how much.
  • Again your contract is an agreement for performance and it should state what you will do should the seller not abide by the signed contract, but also what you are obligated to do for the seller.

If you click on the contract image you will see a partial contract example. It is simplistic and may not be copied for use. It is strictly for information purposes.

Estate Sales News welcomes your questions and you can write to carol@estatesalesnews.com

One caveat, I am not an attorney so the only advice I will give pertains to ethics and expectations not the legalities.

Estate Sale Contract Printable Check List

Estate Sales News knows that having a contract between you and the estate sales company is paramount. As we go into the weekend we have posted this on our front page if you wish to print out the printer-friendly version to assist you with choosing an estate sale company. The Editor of Estate Sales News will be speaking and moderating a session at the 2014 Estate Sales Conference in Memphis, TN sponsored by EstateSales.Net.

The contract should lay out the following in clear language.

  • Name of the estate sales company
  • Your name (you’re hiring the liquidator)
  • Date of the contract
  • Address where the sale is to take place
  • Dates the sale is to be held and time
  • Party responsible for advertising costs
  • Who is responsible and paying for permits (i.e. sign, sale etc.)
  • Cost of the sale – commission, fee or both, make sure it is explicit
  • How the net proceeds of the sale will be paid out, i.e cash or check.
  • Payout for sale is end of each day or end of sale
  • Any items to be excluded from sale
  • Will you be charged if an item is removed from sale after contract signed
  • Who is responsible for the clean out after the sale is concluded
  • Does the liquidator provide a written account of items sold
  • Any additional costs for specialists i.e. appraisers
  • Is the company bonded and insured

All of these items should be covered in the contract for your protection and the estate sales company and to prevent misunderstandings during the liquidation process.

Estate Sale Contracts – What do you want to know?

Estate Sales News monitors the categories and questions everyday on our magazine and the number one request is estate sale contracts.

To our readers, please let us know what questions you have? You can email your questions to contact@estatesalesnews.com. Once we have heard from perspective sellers and estate sale companies we will be updating a list to assist all.

An estate sale contract should protect all parties and lay out what is expected from sellers, and esate sale companies. It should also be easy to read and understand. 

Estate Sales News will be keeping you informed on our responses so please take the time to email us and let us know your thoughts and/or concerns with regard to estate sale contracts.

Lots of estate sales today. Check out EstateSales.Net, Estatesales.org, Estatesale.com and tagsellit.com 

 

The Estate Sale Contract Review – questions to be asked & answered

questions and answers

 

This Monday we would like to review some of the important areas in an estate sale contract. It is one of the most requested pages in our news magazine.

 

 

  • Duplicate contracts – for the benefit of the seller and the estate sale company you should have two contracts with you so that when the contract is signed both parties have a completed contract exactly the same.
  • Dates of sale – both sellers and estate liquidators should make sure the dates chosen will work for both and that there isn’t anything going on in the community that could detract or impair the sale (such as a community festival, town wide garage sales, etc. unless it is necessary or you choose to proceed without concern).
  • Who is going to run the sale – if you are using a company that conducts more than one sale at a time you should ask the estate liquidator you are interviewing to introduce you to the person who will be in charge of the sale and put that person’s name on the contract as well. This should be done before you sign the contract or at the least at the signing of the contract. Signing up with liquidator X and an employee Y shows up to stage, price and run the sale without your prior knowledge or consent can be unsettling (no surprises and you can decide ahead if you feel comfortable with that individual and with that arrangement).

Estate Sales contracts

We have published a page on what to look for in an estate sale contract and we have heard from readers that this has been helpful when interviewing estate sale companies.

The estate sale contract is so important. It is what determines everything from the date of the sale, time, location, costs, and how you receive your net proceeds.

It also addresses the obligation of the estate liquidator and your obligation as the seller, granting access to the premises, not removing items once the sale process is underway unless there is a clear written understanding.

It should also include who is paying for advertising, credit card fees (if used) and what the estate sale company will or will not do at the end of the sale.

To review what to look for and expect for everyone’s protection click here.

Estate Sales Contract

Estate Sales News wants you to have every available resource and here is a check list for an estate sale contract between you and the estate sale company.

The contract should lay out the following in clear language.

  • Name of the estate sales company
  • Your name (you’re hiring the liquidator)
  • Date of the contract
  • Address where the sale is to take place
  • Dates the sale is to be held and time
  • Removal of items from sale after contract is signed
  • Will seller be charged for removal of items before sale and how much
  • Cancellation of sale clause
  • Liability insurance for estate sale company
  • Homeowners insurance policy
  • Utilities – electric and plumbing working, heat and/or air conditioning
  • Party responsible for advertising costs
  • Who is responsible obtaining and paying for permits (i.e. signs, sale etc.)
  • Cost of the sale – commission, fee or both, make sure it is explicit
  • How the net proceeds of the sale will be paid out, i.e cash or check.
  • When will the seller receive the net proceeds
  • Payout for sale is end of each day or end of sale
  • Any items to be excluded from sale
  • Who is responsible for the clean out after the sale is concluded
  • Does the liquidator provide a written account of items sold
  • Any additional costs for specialists i.e. appraisers

All of these items should be covered in the contract for your protection and the estate sales company and to prevent misunderstandings during the liquidation process.

 

 

News About EstateSalesNews.com

In March of 2013 I launched a free online magazine/blog about estate sales. EstateSalesNews.com

My goal was to educate sellers, buyers and estate sale companies based on my 25 plus years of experience as an estate liquidator and a retired owner of an estate sale company.

Now after over 875 articles during these four years the time has come to pass this labor of love on.

The new owner of EstateSalesNews.com is Estatesale.com. They have been a huge supporter of EstateSalesNews.com.

Continuing to offer estate sales news and information is a paramount concern and I hope you will continue to read and follow EstateSalesNews.com.

It has been a pleasure and a privilege to provide free, useful information about estates sales without an agenda. This website was created as a resource for all. Free and unfettered. We have written about the good, the bad and the ugly.

I would like to take this opportunity to wish all the readers and followers of EstateSalesNews.com. my heartfelt thanks. The happiness and joy of writing about a business I care deeply about has been some of the best years of my life.

I will not say goodbye, simply – I’ll see you at an estate sale. Happy shopping.

Carol Madden