I found my new home by myself one day. The next day another realtor took me to a close by neighborhood (same builder).This realtor ended up on my contract that I signed since the builder knew about her. Now the first realtor is threatening to get the 3% commission from me since she's not on the contract and the builder won't put her on since she never came out with me. I asked her if I could go out looking without her and she didn't balk so I'm assumed it was ok to look at totally new homes without her. The 2nd realtor tells me the buyer's agreement has no legal standing but I'm worried. Can I be sued/am I liable?
2006-08-17 08:55:01 · 10 answers · asked by queenelizabeththeeleventh 1 in Business & Finance ➔ Renting & Real Estate
I'm not an attorney, but I would say that you are screwed. You signed an agreement with the first realtor that said, for all intents and purposes, you are my realtor and if I buy a house in this state you will be paid commission.
I'd find an attorney and see if you can negotiate a settlement with both realtors. The second one should never have told you that she would take you to see homes - a buyer's agreement is indeed a contract that has legal standing.
The next time you sign a contract, you'd be wise to read it and understand it, and abide by it or find a legal way to break it first.
2006-08-17 09:07:10 · answer #1 · answered by jackmack65 4 · 0⤊ 0⤋
Okay, so you clearly messed up.
Relax......
You didn't have a buyer contract with Realtor#2 did you? And, they did not show you the house you bought right?
So, have Realtor #1 contact the builder and show them your buyers agreement. That should get Realtor#2 out of the way. Since Realtor #1 is the one who invested time and energy into serving you in the first place, you owe them some loyalty.
I would really question the integrity of Realtor #2 if they are willing to take commission for a sale they didn't make. I would certainly challenge that. (Assuming they didn't show you the house you bought)
If Agent #1 can't get anywhere with the builder and Agent#2 doesn't show any integrity, you might try this:
Offer agent #1 a small fee to be released from your agreement. The amount will cover any costs the agent or broker might have incurred. I would offer anywhere from $200-$500 depending on how much time and effort this agent spent on you.
No one has ever sued or won over a buyer's agreement being broken because #1 They are almost impossible to enforce and #2 It would not be great for business image or reputation.
I know agents who have opted out this way rather than try to enforce the agreement.
If you get to this point and Realtor #1 takes the opt out... Make sure you recommend them to your friends and warn others to stay away from Realtor #2.
Hope all goes well.
2006-08-17 12:09:06 · answer #2 · answered by Pathfinder 1 · 0⤊ 0⤋
check the buyers representation you filled out with the first realtor. if there is an expiration date on it, you need to check and see if your paperwork and contract were filled out BEFORE the expiration of the first agent's buyers rep agreement.
if they overlap, then YES, you as well as that new realtor can be held liable for paying the first realtor you worked iwth the commission.
you need to seek advice from a real estate attorney ASAP. take all paperwork you signed to the attorney, and ask them what can happen.
remember, just because you found the house "on your own" doesn't mean that you can cut out the realtor you were working with, UNLESS your agreement with the original realtor had expired.
i hope this helps.
2006-08-18 02:52:27 · answer #3 · answered by thetoothfairyiscreepy 4 · 0⤊ 0⤋
What is the "life" of a buyer's agreement. There's lots of realtors on this website so maybe they can address how long you're on the hook to a realtor.
We bought our home through a buyer's agent and it was so much better than previous experiences with realtors. I did make suggestions or ask about specific homes and the agent found the listings for me.
Good luck...
2006-08-17 09:02:02 · answer #4 · answered by Anonymous · 0⤊ 0⤋
The 2nd Realtor is interfering in your contractual relationship with the first realtor who has the Buyer Brokerage agreement with you.
The solution is for the 2nd realtor to pay a referral fee to the first. If not, you could be liable for a commission to the agent who had the exclusive agreement.
2006-08-17 14:47:25 · answer #5 · answered by HMMMMMM 3 · 0⤊ 0⤋
I am a Realtor....you should check your first agreement and see what the terms were. There are agreements that state that you owe her even if you find the home on your own. there are many types like
Sole agent....they work for you...no matter who finds it ...you owe
Agreement with her brokerage that whom ever finds the home whether it be another agent...unless you terminated the first....his office is still paid.
And the one most people get talked out of signing is the one where you list with them for their services....and you can opt to look on your own...with no financial obligations....if she is pushing this she must have legal grounds...bring your paper to another agent( not the one your working with...because at 3% thats a share cut from the original 7% that the selling agent gets..) and have them read it for you...she seems to know that you are not aware of the agreements on the contract and she may even lead you astray....i know i have seen it so many times...people hear they are free to look for another agent or look for themselves...but forget whats on the contract...you should speak to a real estate lawyer and explain your situation...if she proceeds she can put a lien on your just bought home that will kill your interest. Or stop the purchase all together....because agents get a check from the balance of the home and if she puts up a red flag...then the title and the deeds will all be invalid....do your home work quickly....
2006-08-17 10:10:52 · answer #6 · answered by Chocolate_Bunny 6 · 0⤊ 0⤋
To date, no real estate company has taken a buyer to court for violation of a "buyers broker agreement" (if anyone knows otherwise I would love to know the state and parties). The problem is that even with the contract, the agent has done nothing to earn a commission. Most state laws require that agents facilitate the transaction in order to earn a commission. That doesn’t mean that you won't be the first, so make sure you have access to a legal professional just in case.
Legal issue aside, no real estate company wants the publicity of being the company that sued somebody for a commission. And it is the real estate company that would have to sue you; the agent cannot sue you for a commission. Talk to the agent's broker; let them know that you are not happy about one of their agents threatening to sue. Good Luck with your new home.
2006-08-17 09:43:38 · answer #7 · answered by jimmy dean 3 · 0⤊ 0⤋
If you signed a buyer's agreement with the realtor....maybe....check with the texas board of realtors or whaterver.
In the meantime, dont take anymore calls or emails from the realtor threatening to sue you.....you might want to pay a real estate lawyer in your state for 30 minutes of their time to review your situation
2006-08-17 14:12:48 · answer #8 · answered by Anonymous · 0⤊ 0⤋
Yes. Your buyer's agreement is a binding contract in which you agreed to
1) work exclusively with that broker; and
2) pay a commission to that broker if you purchase a property in that market area.
The TREC Residential Buyer/Tenant Representation Agreement has strong legal standing. Good luck.
2006-08-17 09:08:37 · answer #9 · answered by Anonymous · 0⤊ 0⤋
If this went to arbitration.....the 1st agent would be entitled to the commission, regardless of whether you find the hse on your own or with her. This is why when you commit to an agent you have to make sure you work through them. Also, YOU are in the wrong for not making full disclosure to the other agent & builder that you already had one you were working with.....
2006-08-17 09:07:55 · answer #10 · answered by boston857 5 · 0⤊ 0⤋