We entered a contract that says if you wish to cancel the contract before 180 days, you shall agree to reimburse the company (Koenig & Strey) for the marketing costs as shown in an itemized statement.
After we found out our realtor was not doing any good job, we tried to get out of the contract. But she said she will charge all the personal time she spent in selling the property. We told them we can only pay the marketing cost as provided in the itemized statement. She and her broker refuse to cancel the contract or take our property out of MLS. unless we pay them $1275.
They want to charge $1000 agent service fee in addition to $275 ads cost. Is it legal for them to charge $1000 service fee? In that case, they can charge $5000 if they want to. Are they blackmailing us? The contract did not say we should reimburse the realtor's time, hourly rate, etc. Is it ethical for them to charge something that's not in the contract? What is our best option in this situation?
2006-08-30 02:33:02 · 8 answers · asked by Rentor2007 1 in Business & Finance ➔ Renting & Real Estate
This sounds very sketchy. Don't know where you are, but likely the charges they are trying to stick you with are not legitimate. However, this is larglely irrelevant to your main concern which is that you no longer wish to continue your relationship with them as you selling agents/brokers. Real Estate professionals assume a fiduciary relationship with those they represent and ethically they are bound to certain standards. Write them a firm letter letting them know that they no longer represent you and that you expect them to affirmatively cease all representation immediately and if they refuse you will pursue the matter to the fullest extent allowable by law. Be prepared to report them to the better business bureau, any real estate oversight agency in your area, any corporation with which they are affiliated, and if necessary be prepared to contact a lawyer. Realtors are licesned professionals and licenses can be revoked. They will try to avoid this if they want to stay in business.
If they send you a bill, refuse to pay what you think is not legitimate. They may pursue the situation with collections, a law suit, etc but I think this in unlikely since it sounds like they are trying to take advantage of you.
2006-08-30 03:04:01 · answer #1 · answered by schulteraffe 2 · 0⤊ 1⤋
Is it legal? Absolutely.
Is it ethical? Maybe. Yes if it was in the contract. No if not.
Do You have to pay? Maybe. Read the contract you signed. The standard form says you will reimburse marketing expenses. If they added a charge for agent time into the contract, I doubt you would have signed unless you didn't read it. If you there is no such clause, ask for proof that they paid that agent. If they haven't yet paid (and I'll bet money they haven't), it's not an expense.
Is it good business practice? No. Paying for the ads is okay; they were placed in the expectation that you would give them the full six months to sell if necessary. But not billing for time, even if it was in the contract. Real estate agency is a speculative business, which is why the money is as good as it is. If I don't get the job done (as in a fully consummated sale), I get nothing, thereby assuming all of the risks. You risk nothing except time. Not to mention that if people start billing for time, it opens up a whole new area for scams.
2006-08-30 04:03:13 · answer #2 · answered by Searchlight Crusade 5 · 0⤊ 0⤋
Is it criminal? certainly. Is it ethical? could be. particular if it was interior the settlement. No if no longer. Do you are going to be able to desire to pay? could be. study the settlement you signed. the undemanding variety says you will reimburse merchandising costs. in the event that they introduced a fee for agent time into the settlement, I doubt you in all risk could have signed except you probably did no longer study it. if youin case you there is not any such clause, ask for information that they paid that agent. in the event that they have not yet paid (and that i will wager funds they have not), it somewhat is not any longer an rate. Is it sturdy commerce word? No. buying the commercials is advantageous; they have been placed interior the expectancy which you will furnish them the full six months to sell if imperative. in spite of the shown fact that now no longer billing for time, notwithstanding it was interior the settlement. certainly assets agency is a speculative commerce, that's why the money is as sturdy because it particularly is. If i are not getting the activity finished (as in a completely consummated sale), i'm getting no longer something, thereby assuming all the hazards. You risk no longer something to boot time. to no longer point out that if human beings start up billing for time, it opens up an entire new field for scams.
2016-09-30 04:09:35 · answer #3 · answered by ? 4 · 0⤊ 0⤋
Have her supply you with a copy of the payment she received from her company paying her for her time as a marketing cost. What do you want to bet her company never did that. The point being that if she got paid by her company for her time then it's a marketing expense. If she did not get paid by her company then it's not a marketing expense. Your contract is with her company not with her.
2006-08-30 02:41:00 · answer #4 · answered by newmexicorealestateforms 6 · 0⤊ 0⤋
if the contract says for marketing cost only then that is all,
1st i would ask for receipts of the marketing they did do, as to the 1K service charge to agent way out of line threaten to report the broker and agent to your state real estate commission board and local board, since most agents are independent contractors it will be hard to shows broker paid agent 1K to market, so it will be the agent to justify she did 1K worth of work plus it is not even in the contract I would ask for receipt then report the agency
2006-08-30 04:15:15 · answer #5 · answered by goz1111 7 · 0⤊ 0⤋
Go to your local Board of Realtors to ask for advice. This is the organization that will help in case of disputes.
A realtor will often do anything to keep an official complaint from being file, and the Board of Realtors can be an advocate for both sides.
Chicago Board of Realtors: http://www.chicagorealtor.com/
2006-08-30 03:09:48 · answer #6 · answered by pseudo 3 · 2⤊ 0⤋
Ideally, if you cancel the contract for "change of heart" and it is past your inspection period the seller, sellers agent, buyers agent can sue you for damamges. Usually agents will sue for comission. So YES they can sue you. Think of it this way...an agent does alot of work for you and you don't always see it behind the scenes. So would you like to go to work and not get paid? This is why they can sue. I would speak with her broker before taking any action.
Best Wishes
2006-08-30 08:17:34 · answer #7 · answered by ? 4 · 0⤊ 0⤋
If its not in the contract, they cannot charge you for it. Write them a check for the $275 and tell them if they want the rest they can take you to court for it.
2006-08-30 02:38:56 · answer #8 · answered by Kutekymmee 6 · 1⤊ 0⤋