Posted by RoadRunner on 7/13/04 6:22am
Msg #4317

Late fee contract

I have been in business for 3 weeks and reading the forum for 6 weeks. Thank you "NotRot" gurus for your insight. A day of life experience equals 10 years in school.

Due to the majority of negative posts I've read about no/slow-pay SS, I must be am blessed so far with 7 signing from lenders only. Not to brag in anyway, but they paid well and I received my 4th check today.

We are in a real estate related business. Its a lucrative field, but I see our pay is somewhat like the courier cost on the HUD. As a former real estate agent, one important thing I learned is the phrase "Time is of the Essence". For this reason, we hustle and bust our tail to complete an assigment. Then the check hasn't come for 3-6 months.....

Therefore, I created a mini contract for SS before I accept an assignment. The contract state "I expect payment to be received within 30 days from date of service rendered. A $5 fee will be charged if late and another $5 for each 30 days thereafter". Like it or not, I'd rather not work then to hopelessly wait for my hard earned money from someone bad SS.

I read an article sometimes ago. BlockBuster video made $million$ in revenue just from customers late fee with their genius 3 days rentals but due by noon the 3rd day (don't forget to pack the video with your lunch).

An extra $5 on top of what we make is a reasonable return for a 30 days investment. Try this on the stock market....LOL

Beep....Beep!!!!!!

Reply by Irma on 7/13/04 10:53am
Msg #4318

I am very happy about your success. I am a former real estate agent also. I haven't had success in signings though. I have been one for 4 months and, haven't had any signings yet.

Reply by Sylvia_FL on 7/13/04 12:19pm
Msg #4325

It sometimes takes a while to get started Irma, especially as a lot of States are flooded with signing agents (Thank you NNA)

Reply by CA_Notary on 7/14/04 3:25am
Msg #4371

Have you actually gotten any signing services to agree to and/or sign this contract?

I think this is a terrible idea. You're going to end up pissing off more companies than not which will result in much less work for you. Is it really worth it for five bucks? Don't put yourself out of business before you've even gotten started.

Reply by RoadRunner on 7/14/04 5:53am
Msg #4373

Re: Late fee contract-CA Notary


I'd rather pissed them off for having to think twice before stiffing my money. If you consider this a professional business, then it only mean money talk just like any other professions. Try open a phone book and call a lawyer then ask for an over the phone consultation. No way jose, "please bring a $125 check to my office then we will talk for 1/2 an hour".

Those (SS) who don't mind my contract will at least give me assurance that I'm dealing business with an honest company. I read your topic about NES. Its been since May, what's going thru your head about the last check now?

Reply by CA_Notary on 7/14/04 11:43am
Msg #4384

Re: Late fee contract-CA Notary

Hey, if you think your late fee contract is going to work for you, go right ahead and use it. I still think that approaching signing services with the attitude of "I don't trust you not to screw me over" is going to be bad for business for you. Actually I don't think that it will be, I *know* that it will be.

You haven't mentioned whether you've found any signing services willing to sign your contract. I'd bet you haven't , and that you won't. How exactly do you plan to enforce this "contract" anyway? Do you even know if it legally enforcable?

If you read my post about NES, then you should know exactly what is going through my head about the check that they owe me. I have no idea what's going on with them, but what's happening with that check is completely out of character with the great treatment I've gotten from them prior to this, and I haven't reached the point where I think they're screwing me over yet. However, if they have gone out of business, I can tell you that a contract like yours still wouldn't do squat in helping me recover the payment for the 2 signings that I'm still owed.

Reply by RoadRunner on 7/14/04 3:28pm
Msg #4405

Re: The big picture

Thanks CA-N for your opinion. To me, getting rip seems to be the biggest downturn for this industry. It probably doesn't make sense on an individual perspective but if everyone start doing it, it will become a business standard.

By mean of the big picture; if one company can get away with it and those who get ripped come crying in the forum. We know not only SA read this board but others as well, doesn't take much for someone to "RIP" to the trend.

Imagine 50 SA get ripped by company X at $100 a pop, thats $5k. Then company-Y, Z and so on. $5 is not a big number, try multiply by the hundred/thousand number of SAs out there.

Getting pay on time is our only right and intention for being an independent contractor. For me to such contract is only to remind the agency (indoubt) of my right.

Reply by NotaryML on 7/14/04 10:16pm
Msg #4431

Re: The big picture

I'll tell you what works and hits them hard --- Send a D&B letter to them. That way their credit gets a hit as well as scaring into paying. Don't get me wrong, not all people that receive d&B letters pay you back, but it's worth my $12.50 a letter to gain a closing that I did for $150.00.

Reply by HisHughness on 7/14/04 10:42pm
Msg #4432

Re: The big picture

Let me guess: You don't by any chance sell pre-paid legal insurance, do you?

Reply by CA_Notary on 7/15/04 2:06am
Msg #4442

Re: The big picture

Non payment of services is hardly exclusive to the signing agent industry. We're self employed individuals, it's going to happen every now and again. It's a cost of doing business and there's no avoiding it in ANY industry.

I think the big picture you need to look at is that you're a brand new member of an industry that is already heavily saturated. Your primary concern right now should be getting your foot in the door of as many different places as possible. The industry already works a certain way; if you come in with your whopping 3 weeks of experience and making demands that are not standard in the industry, you're going to get doors slammed in your face left and right, and ultimately lose MUCH more money than you would from the occasional stiffed payment.

The truth is, most signing services are honorable and reputable. Some pay slower than others, but stiffing signing agents is simply not as big of a problem as you seem to think it is. I've done 400+ signings in the past year and have been "stiffed" on exactly two of them. Which means I've been paid for 99.5% of the signings that I have done. Not exactly a problematic percentage.

One other thing I want to say, and there's really no way to say this without sounding bitchy, even though I don't mean it to be: You have some major problems with grammar. It would definitely be to your benefit to keep any written communications to signing services to a bare minimum. If your contract is written with the same type of grammar you've shown in your posts, most signing services are going to think you're not only pushy and paranoid, but ignorant as well.

Anyway, my point is, at this point try to focus on the positve aspects of what you're doing and stop worrying about revolutionizing the integrity of the signing service industry. If a company is going to screw you, your contract isn't going to do a damn thing to prevent that. If they're not going to screw you, then they don't need to be reminded of their obligation to pay their agents, and you only run the risk of alienating them with your contract. Wait until you get 50 or 60 signings under your belt, then review how many you haven't been paid for. I'm sure you'll be pleasantly surprised by the results and will wonder why you were so paranoid to begin with.