I recently entered into a contract to purchase a home. When we made an offer my realtor talked me into raising my bid because she said there was already one offer being presented at the same time as mine. The following day she called me stressing that if we wanted the house we needed to accept his counter offer which was very close to the asking price. She told both my wife and I that there had been two offers other then ours come in! In hast we accepted his counter. (She knew we wanted the home) Afterward we meet the owner and he told us that our offer was the only one he ever received or even heard of. We really want the house but at the same time we are very disappointed. We thought that our realtor was working for us but instead after getting to know us "worked" us out of several thousands. I do not know if he would come down but I know I was the only one being worked, and in this case lied to. I have asked this before but not knowing how this works I closed it before I was ready.
2006-08-10 02:25:02 · 11 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
the agent was working for me in theory. The house was being listed by another agency. For the one who asked the state is in arkansas. To mister passive aggresive I did confront her. She said I could back out if I wanted to. But the fact is we want the house and she knows that. My real point is do I have any legal ground.
2006-08-10 09:02:10 · update #1
YES. If you can get the seller to confirm what you've said, you have an excellent case. I would also take it to the local Board of Realtors and make an ethics complaint. You'll need to be resolute because from my experience, they attempt to brush these things under the rug.
Were there two realtors involved in this transaction? You failed to mention that. Listing agents have their fiduciary responsibility to the seller. If they act as a dual agent (listing agent working for you as well and getting both sides of the commission) then they cannot by LAW, give you any advice with regards to price. They can't help the seller as well with regards to price if acting as a dual agent. If the agent was acting as a subagent then they still were working for the seller, but if the agent was working as a buyer's agent, then their fiduciary responsibility is to you, the buyer. An agent doesn't have to be paid by you to act as a buyer's agent in my state. Check your contract. In the first paragraph of our contracts, the agents have to disclose who they are representing. If your agent checked that they were representing the buyer then you have an excellent case. Disclosure is preached by the NAR, but the general public still doesn't understand agency and are still hurt by calling the listing agent about the property for sale. You're ALWAYS better off having a buyer's agent...preferably an ethical one.
I would definitely recommend an ethics complaint against the agent with the local board. If found guilty, they could be fined and it would go on their record with the state licensing agency. It would also help your case if you take them to court. The most important thing is that you get a notarized statement from the seller that there were no other offers.
This kind of thing makes me mad. In my experience, 80% of the agents are ethical, but the other 20% make the entire industry look bad.
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I read your other posting...If you haven't closed yet and you already know this, then you will have NO CASE or grounds for complaint if you close. Originally I thought you had already closed before finding this information out. My advice, take the steps to back out of the contract. You might still be able to get a better price. The sellers are counting on you to close within a week. It would mess them up as well. You can also talk to the BROKER of your agent. Explain what has happened and see if you can negotiate a reduced commission and a lower selling price for this to go away for them. This way, the sellers still get their same net and you pay less for the home. Whatever you do, if you close, you will lose all of your rights. You have a tough situation and have an even tougher decision to make. I don't envy you one bit. I'm sorry this unethical agent has put you in this situation. They should be the one to pay. By the way, you don't have any obligation with regards to commission because of the circumstances. Don't let them pressure you by letting you think that.
It also seems to me that the sellers will have damages against your realtor if you back out at this point. Becsue of this, I really think you can put the pressure on your realtor (You have to talk to the BROKER), to reduce or eliminate the commission for this to close. The sellers might be suing them otherwise.
By the way, it is better if you choose the best answer, rather than put it out for voting. Even if it is not mine. I just know that if someone takes the time to write up an answer for you, it is discouraging if you don't give any feedback. We wonder if you even saw our answer...and we just wasted our time trying to help. Again...even if it isn't mine, please choose a best answer after 4 hours have passed.
2006-08-10 02:39:17 · answer #1 · answered by why 3 · 0⤊ 0⤋
Unless you were paying your agent as a buyer-broker, the agent has a fiduciary responsibility to the seller to sell their property and get the best deal for them she can, even if she is working with you, the buyer. That is true even is the Realtor is not the one who is listing the home. It is very similar to a car salesman who is helping you with your car purchase but actually works for the dealer.
That being said, that does not give the Realtor license for fraud. The scenario you described is a common one, I'm sure, but that does not make it acceptable. You should contact your local board of realtors and make a complaint, but don't stop there because that board represents the realtors. contact the appropriate state licensing agency and file a complaint as well. Before you file any complaint, however, make sure that you have all the facts correct.
2006-08-10 02:34:56 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Did you have an agency contract with that Realtor or were they representing the seller? If they were representing the seller and you did not have an agency contract with them, then what they were did was perfectly legal, and common practice to boot. It is still unethical in that they lied to you (something the vaunted Realtors Code of Ethics explicitly forbids), but despite the fact that I am a Realtor, I'll believe that code of ethics means something when I start seeing meaningful penalties imposed for violating it.
This is a picture perfect reason why you want to get a Buyer's Agent on *your* side. That seller's agent is bound to the seller, not to any buyer. They are putting the seller's interests first (theoretically), then their own. They owe you nothing. A good buyer's agent would have stopped and taken the emotion out of it, and gotten you a better bargain. Furthermore, if you had a signed Buyer's Agency agreement, you would then have someone to sue in this instance to recover all that extra money you spent, because they then would have owed you a fiduciary duty of care.
More in depth discussion of Buyer's Agents here:
http://www.danmelson.com/posts/1148583869.shtml
2006-08-10 03:09:45 · answer #3 · answered by Searchlight Crusade 5 · 0⤊ 0⤋
The short answer is to contact the state licensing authority for real estate agents. In Maryland it is the Real Estate Commission. They also have a fund set up to pay you money if a buyer's agents costs you money. You may also have a civil case under misrepresentation. Contact an attorney with knowledge of real estate, and civil cases. (this will not be easy to find)
The board of REALTORs handles complaints between REALTORS, and will probably refer you back to the manager/broker of the agent in question. The state may also to see if it can be resolved without a hearing.
2006-08-14 00:43:29 · answer #4 · answered by Chris G 1 · 0⤊ 0⤋
Please contact your local Board of Realtors right away. They have standards of ethics and practices just like Lawyers and doctors. This realtor should be investigaged. Also find out who the mortgage broker is for that firm and contact them. If nothing else, you should be entitled to at least a partial refund from that agent's commission.
2006-08-10 02:34:10 · answer #5 · answered by jiminycricket 3 · 1⤊ 0⤋
Unfortunately, this issue comes up all the time and your gut sense is correct in that you were misled, if indeed the facts are correct the agent and the broker the agent works for are in serious trouble. If you need help tell me the state this happened in.
2006-08-10 02:55:20 · answer #6 · answered by newmexicorealestateforms 6 · 0⤊ 0⤋
What this realtor did was unethical at the very least. Whether this is a prosecutable case, you have to consult a lawyer.
2006-08-10 02:32:32 · answer #7 · answered by WC 7 · 1⤊ 0⤋
NEVER TRUST REALTORS! realtors will do anything they can to keep you from talking to the sellers and getting as much money as they can...i cant stand realtors...i dont know if its illegal...call your local title company and ask for one of their attorneys
2006-08-10 05:33:50 · answer #8 · answered by rainprincess0820 3 · 0⤊ 0⤋
LOOKS LIKE THE REALTOR IS TRYING TO MAKE HER EXTRA COMISSION BY UPING THE SELLING PRICE, YOU NEED TO FIND A NEW REAL ESTATE AGENT WHO IS HONEST.
2006-08-10 03:13:45 · answer #9 · answered by littlebettycrocker 4 · 0⤊ 0⤋
report them right away and you may be able to get the money back
2006-08-10 03:30:00 · answer #10 · answered by Anonymous · 0⤊ 0⤋