What is an example of a document to retain from an unsuccessful transaction?

Retaining a collapsed purchase contract is an important practice for a real estate professional. A collapsed purchase contract refers to a transaction where the agreement to buy or sell a property was initiated but ultimately did not proceed to completion. This document is valuable because it contains detailed information about the terms and conditions that were agreed upon prior to the transaction's collapse.

Having this record allows the agent to review what happened during the negotiation process, including any contingencies that may have affected the transaction's failure. This information can serve as a learning opportunity for future transactions, helping to refine negotiation tactics and understand potential pitfalls. Additionally, if disputes arise later regarding the transaction, having a physical record can serve as evidence of the agreed-upon terms at that time.

Documents like purchase contracts and waivers of conditions are typically retained for ongoing transactions or successful completions, while client correspondence pertains more to the communication aspects of the transaction. In contrast, a collapsed purchase contract specifically captures the details surrounding a failure, making it particularly relevant for retention in the context of analyzing unsuccessful transactions.