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| - | Most Foreign Invested Enterprises (FIEs) are governed by a board of directors and senior management. An exception exists for Cooperative Joint Ventures that the parties have selected not to incorporate (these are governed by a management committee).
| + | What Is a Transaction Coordinator? |
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| - | Powers: The Chairman, as the legal representative of the enterprise, has the energy to legally bind the enterprise and bears considerable responsibility for its acts and
| + | A Transaction Coordinator is a person who takes responsibility for managing the deadlines and tasks of a real estate contract to closing. Some of the duties include: |
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| - | omissions. Most of the powers and func...
| + | 1. Responsible for processing of all contracts through closing. |
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| - | Board of Directors
| + | 2. Coordinating appointments for inspections, appraisals, and closing. |
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| - | Most Foreign Invested Enterprises (FIEs) are governed by a board of directors and senior management. An exception exists for Cooperative Joint Ventures that the parties have chosen not to incorporate (these are governed by a management committee).
| + | 3. Effectively communicates with clients, customers, other agents, lenders, title agents and other service providers throughout the process. |
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| - | Powers: The Chairman, as the legal representative of the enterprise, has the power to legally bind the enterprise and bears substantial responsibility for its acts and
| + | 4. Responsible for proper documentation of the file to comply with brokerage policies. |
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| - | omissions. Most of the powers and functions of the board are set forth in the Articles of Association and in the Joint Venture Contract.
| + | 5. Assures that all post-closing disbursements, filing, and procedures take place. |
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| - | Number of Directors: The board of directors of both Wholly Foreign Owned Enterprises (WFOEs) and Joint Ventures are essential to appoint in between three and 13 directors. FIEs with couple of shareholders could be able to convince the examination and approval authority to dispense with the board of directors and use an executive director.
| + | 6. Frees the agent client up to focus on business building activities. |
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| - | Membership: In an Equity Joint Venture (EJV), board membership must be proportionate to capital contributions. The board must have a Chairman, but need to have not have a Vice Chairman. If both are used, nevertheless, then if the foreign investor selects the Chairman, the Chinese celebration must pick the Vice Chairman, and vice versa.
| + | In many offices across the country, there are transaction coordinators on staff who are shared among the office. While this approach seems practical or beneficial on the surface because the coordinator is in house and can be accessed by stopping by her/his desk. It's not always the best or most effective approach when explored further. There are many reasons for that, a few are outlined here: |
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| - | Meetings: Joint venture board meetings must be held when a year, and a quorum is 2/3 of the directors. For Equity Joint Ventures, unanimous consent of the board is required for amendment of the Articles of Association, boost or reduction of the Registered Capital, merger or division, and termination and dissolution. The law is significantly much more flexible for Wholly Foreign Owned Enterprises - board meetings and quorum specifications are governed by the WFOEs Articles of Association.
| + | a. The transaction coordinator is paid by the office and has a job, which is not always exclusively coordinating transactions. Meaning, they could get pulled away from their job to help the other departments such as receptionist, listing coordinating or what have you. This means they aren't working on your transactions. |
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| - | Director & Officer Liability: Director and officer liability law and enforcement is not as nicely-developed as in many Western nations. Correspondingly, the market place for directors and officers liability insurance coverage is not particularly properly-developed either. The Chairmans part as the enterprises legal representative encumbers him with both civil and criminal liability for the acts and/or omissions of the enterprise. Directors can be held liable for board resolutions that are illegal or that contravene the Articles of Association and cause losses to the firm. Directors, supervisors and senior management personnel can be held liable if they trigger losses to the enterprise by violating laws and/or the Articles of Association.
| + | b. Interruptions! The facts are clear, it can take more than 20 minutes to get back on task after an interruption. That said, imagine how inefficient it can be if agents are walking in and out of the transactioncoordinators office all day long. |
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| - | Management
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| - | Equity Joint Ventures need to appoint a Basic Manager, one or far more Deputy Common Managers, and a Finance Manager. Although not required for other FIEs, this is typical practice for these enterprises as well. If a Chinese investor nominates the Common Manager of an EJV, a foreign investor may nominate the Deputy Basic Manager, and vice versa.
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| - | Common Manager: The Basic Manager is charged with day-to-day operation and may possibly be a foreign national if the enterprise so chooses. The responsibilities of the General Manager need to be listed in the Articles of Association even if Chinese law does not demand the appointment of a Basic Manager (as in the case of WFOEs). The Common Manager is charged by law with responsibility for formulating a management system for the enterprise production, operations and management, employment and termination of employees (except these that must be employed and dismissed by the board of directors) and implementing board resolutions and investment and organization plans.
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| - | Deputy General Managers: A Foreign Invested Enterprise might appoint one or more Deputy Basic Managers (EJVs are essential to appoint at least 1).
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| - | Finance Manager: An Equity Joint Venture is needed to appoint one particular or a lot more accountants to help the Basic Manager with finances. This is also frequent practice for other FIEs.
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| - | Supervisors
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| - | LLCs are needed to have supervisory boards, even though this is typically ignored in practice by WFOEs and Joint Ventures. [ We're Listening To You]
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Current revision as of 05:14, 9 December 2017
What Is a Transaction Coordinator?
A Transaction Coordinator is a person who takes responsibility for managing the deadlines and tasks of a real estate contract to closing. Some of the duties include:
1. Responsible for processing of all contracts through closing.
2. Coordinating appointments for inspections, appraisals, and closing.
3. Effectively communicates with clients, customers, other agents, lenders, title agents and other service providers throughout the process.
4. Responsible for proper documentation of the file to comply with brokerage policies.
5. Assures that all post-closing disbursements, filing, and procedures take place.
6. Frees the agent client up to focus on business building activities.
In many offices across the country, there are transaction coordinators on staff who are shared among the office. While this approach seems practical or beneficial on the surface because the coordinator is in house and can be accessed by stopping by her/his desk. It's not always the best or most effective approach when explored further. There are many reasons for that, a few are outlined here:
a. The transaction coordinator is paid by the office and has a job, which is not always exclusively coordinating transactions. Meaning, they could get pulled away from their job to help the other departments such as receptionist, listing coordinating or what have you. This means they aren't working on your transactions.
b. Interruptions! The facts are clear, it can take more than 20 minutes to get back on task after an interruption. That said, imagine how inefficient it can be if agents are walking in and out of the transactioncoordinators office all day long.
