Transaction Coordinator Law

[Timothy Michael Mick]

Are there non-disclosure laws that prevent transaction coordinators from sharing information with other people?

[Sheila Rociel Jackson]

This thread is a few months old and I am glad it's made clear that Creative TC's has been around for years just like on the retail side. They can not write up contracts if unlicensed in both the retail side and the creative side and TC's are most beneficial on the creative side to new investors, high producers, and  those investors that are in a position to scale their business. 

[Heather Kiddoo]

Hi Sheila - agreed. I just lost a file because I refused to write the promissory note and deed of trust for the investor I was working with. It was on a private money lending deal where he was lending on construction. 

Apparently, someone had told him that's what TCs do - the write contracts. So when I explained otherwise - he "fired" me :) and said he had many other TC's who said they would do that for him. 

[Jay Hinrichs]

Quote from @Heather Kiddoo:

Hi Sheila - agreed. I just lost a file because I refused to write the promissory note and deed of trust for the investor I was working with. It was on a private money lending deal where he was lending on construction. 

Apparently, someone had told him that's what TCs do - the write contracts. So when I explained otherwise - he "fired" me :) and said he had many other TC's who said they would do that for him. 

I am not sure in all states it would be illegal for you to prep a note and DT  ..  I know we do those in our office when needed.. just not many TC's are knowledgeable to write those documents.. most of those are available on line just fill in the blanks.. I can call my title company and they will send me a fill in the blank DT for instance.

[Chris Martin]

For those REI in NC, note that "transaction coordinator" is not defined in NC state statute and for the most part is not recognized by NCREC. But, per this recent Top Complaints piece in NC REC news, "transaction coordinators" (TCs) could be considered a star in the closing show: 

"Brokers may also utilize the services of a transaction coordinator to assist them with
managing administrative aspects within the transaction. However, if a transaction
coordinator does not have an active real estate license, they cannot participate in
brokerage activities like negotiating repairs and contingencies...."

Full disclaimer, I have a SFR for sale now with a broker I've recently used for selling many (6-8) properties and they (the brokerage) use a TC as my interface as part of their process. Along with the "closing coordinators", the "transaction coordinators" perform a specific set of tasks in the overall process. 

[Heather Kiddoo]

Quote from @Jay Hinrichs:

Quote from @Heather Kiddoo:

Hi Sheila - agreed. I just lost a file because I refused to write the promissory note and deed of trust for the investor I was working with. It was on a private money lending deal where he was lending on construction. 

Apparently, someone had told him that's what TCs do - the write contracts. So when I explained otherwise - he "fired" me :) and said he had many other TC's who said they would do that for him. 

I am not sure in all states it would be illegal for you to prep a note and DT  ..  I know we do those in our office when needed.. just not many TC's are knowledgeable to write those documents.. most of those are available on line just fill in the blanks.. I can call my title company and they will send me a fill in the blank DT for instance.

yes. Correct, probably not "illegal" per say but out of scope would be a better word. For our TC biz, we don't want the liability of writing PN or DOT. We have read 100's, we are real estate investors ourselves, and understand what they say. Sometimes things go wrong and when they do, the TC is the often the first one to be looked at. So, we choose to stay away from it. Some TC's don't and that's ok. They can do them - we will do us. Most of the title companies we work with have an attorney they work with to do these things for investors, and if not we have a huge referral network.

[Heather Kiddoo]

Quote from @Chris Martin:

For those REI in NC, note that "transaction coordinator" is not defined in NC state statute and for the most part is not recognized by NCREC. But, per this recent Top Complaints piece in NC REC news, "transaction coordinators" (TCs) could be considered a star in the closing show: 

"Brokers may also utilize the services of a transaction coordinator to assist them with
managing administrative aspects within the transaction. However, if a transaction
coordinator does not have an active real estate license, they cannot participate in
brokerage activities like negotiating repairs and contingencies...."

Full disclaimer, I have a SFR for sale now with a broker I've recently used for selling many (6-8) properties and they (the brokerage) use a TC as my interface as part of their process. Along with the "closing coordinators", the "transaction coordinators" perform a specific set of tasks in the overall process. 

There are many states that define this which is great. We have a document in our mentorship that guides on each of the states laws. 

That being said, we are predominantly creative finance TC's. There is a big difference in the roles between a TC working for a real estate brokerage or agent, and a creative finance TC. Unless we are partners in a deal, we do not draft PSA's either.  

[Sheila Rociel Jackson]

Yes, Note and D/T can be done by a TC, but not the contract. I come from the mortgage industry as a loan processor and a loan closer and those legal docs templates we used were created by a  real estate attorney, therefore, it's the same principle that allows a TC to do the same thing. A TC has to make sure that they are using D/T & Note template created by a Real Estate attorney for each type of R/E transaction. But creating a contract, I don't touch.