If you’re the owner of a trail book, and you want to sell it to another party, you may need a Trail Book Sale Agreement

Like other sale agreements, it will outline the general terms of the sale such as the price and other legal protections. But before we go into the actual Agreement, let’s go through the selling process in a little more detail. 

Why Do People Sell Their Trail Books?

It’s common for mortgage brokers to sell their trail books, often because they are looking to transition out of the industry or retire, or where they are looking to raise extra funding for expansion.

Either way, it’s good practice to have an appropriate Trail Book Sale Agreement in place to ensure the transaction experiences minimal hiccups. 

But before you get into the Agreement, you want to make sure you’re well prepared. For example, do you have approval from all the relevant parties? Are you clear on what files are included in the sale? Are you including any provisions limiting liability?

What Should The Agreement Cover?

As we mentioned, a Trail Book Sale Agreement is similar to any other sale agreement. You’ll want to include the price, what’s actually included in the sale and protection of your legals. 

Your Agreement should also cover the following matters:

  • Is your buyer looking to develop customer relationships?
  • Is your buyer planning introductions and integrating with their existing database?
  • Do you want to add special or additional terms under which payment will be made?
  • Will the value of the trail book drop? If so, will this cause issues of overpayment?

You also may want to include Non-Compete Clauses in your Agreement. If the trail book was owned by a company, for example, and they employed contractors or other staff who have access to client data, this could be bad news for the buyer. 

A Non-Compete clause will ensure that there is no friction or conflict around poaching clients. 

The contract should also include details around due diligence. For example, who is responsible for ensuring that the information about the client details are true and verified? If information about the trail was communicated verbally, perhaps you’re better off having this in writing. 

Where Can I Get A Trail Book Sale Agreement?

The process of selling a trail book can already be quite a handful, so it’s a good idea to get some legal help when it comes to preparing the sale agreement. 

Sprintlaw offers a Trail Book Sale Agreement package which can save you the time and stress of drafting the document. It includes:

  • A Trail Book Sale Agreement in accordance with your business’ requirements
  • Phone consultations with an expert lawyer who can advise you on the legal issues that are relevant to you 
  • A complimentary amendment to the final draft we provide to you 

Next Steps

Getting quality legal help is easy with Sprintlaw. Our lawyers can make the process simple, quick and stress-free. 

If you would like a consultation on your options going forward, you can reach us at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligations chat.

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