Which real estate agent is correct? Who can represent me?

Question

I 1st talked to the builder's agent then got my own. Now builders agent says I can't have my own agent b/c I talked to him 1st. My agent says this is against the law/rules and that I have the right to have someone represent me. Who is right? The builder's agent is being a jerk about the whole thing, and I don't trust him. Please help.

Answer 1

The builder's agent doesn't want somebody who knows what they're doing helping you. They have zero responsibility to you, but get the entire commission (which he wants) if you don't have a buyer's agent.

On the other hand, many builders set a condition that you must have your buyer's agent with you on your first visit in order to pay their commission, because that way most people won't think far enough ahead, and they don't have a buyer's agent to deal with, which is their goal all along. There is also the concept of "procuring factor", on the other hand an excellent case can be made that you wouldn't buy without a buyer's agent of your own to represent you (right?), and I seriously doubt you have a contract with the developer's agent. Given the market in large portions of the country, they don't want to lose a sale that might mean it'll be weeks before someone else comes along to buy it.

Answer 2

It depends. You have not given us enough back ground. So I will try to get into the generalities instead and I hope this can help.

If you are dealing with a large project, the builder usually have their own in house sales people and they are not necessary licensed agents. It is perfectly legal. At the same time, the builder may have a cooperating program with outside agents and will pay them a commission in the event they bring a buyer. Now this is the tricky part. If you show up without an agent first and they register you, the builder will not pay the agent you bring later on. On the other hand, if you go there with your agent first or even bring your agent's card and tell them you are being represented by another agent, then they will register you and the agent as well. All of these are perfectly legal and ethical. It is done this way exactly to avoid commission dispute later on such as your case.

Now on the other hand, if this is not a large project with an in house agent sitting there, then I presume the builder's agent is an outside agent and not a direct employee of the builder. In that case, the builder's agent is trying to be greedy and trys to keep the entire commission instead of sharing it. You need to find out what the real situation is.

Think of it this way, if the builder's agent is infact an in house sales person, the builder will pay one commission. They don't normally pay a full commission to in house agents. If it is involves two agents, the builder pays more. So quite possibly, the in house agent is given his marching orders. You may want to talk to the project manager or the builder directly and see if they honor your agent's commission. But remember one thing, your house may just become more expensive. On the other hand, the market is cooling off. You may have some leverage there.

Answer 3

Did you sign anything with anyone about being represented by the 1st agent? If not then you may not owe him anything but who was the procurring cause of the sale? If the 1st agent was the procurring cause of the sale he may come back against the 2nd agent in a grievence committee. Now If you have not signed papers saying that you would be represented by the 1st agent it would depend on the laws in your state. I still feel you have a right to choose the agent you want to represent you; so ask the second agent to talk with a real estate attorney in your city and state. If this don't work go to the 1st agents broker and tell his broker; unless he is the broker. If he is; go to the Board of Realtors in your city and ask them about this issue.

Answer 4

I am a builders agent,you have the right to representation. However,if you entered into contract without disclosing the fact that you were working with an agent --most builders will not obligate to pay your agents commission because its questionable as to whether they were the procuring cause for you buying the home.

Answer 5

Unless you signed some sort of contract with the builder's agent then you can get anyone you want as an agent. Just because you talk to someone does not necessarily create a binding contract.

Answer 6

In California, (and I suspect) many states, there is a type of contract that binds the buyer to a Real Estate agent. This 'Buyer Broker Agreement' if signed may require you to work with that agent towards the purchase of a home. If you didn't sign this or any similiar document then you are free to choose any representation you want.

Answer 7

It's your money, you are right. Tell the builders agent 'This is my agent, he will be paid his portion of the commission or you loss a deal.'

That's of course if you haven't signed anything.

Answer 8

nicely, it is your fault. you're entitled to a HUD contract rfile that spells out precisely what you have become, and you may get that rfile 24 hours only before remaining. it fairly is federal regulation. you will could ask for it, notwithstanding it grow to be obtainable for you. in case you probably did not examine it that's not your brokers fault. Your actual belongings agent had not something to do consisting of your financing. That grow to be between you and your lender. lower back, in case you probably did not examine the significant factors or ask questions, it fairly is your fault. some creditors do attempt and stick you will unfavourable loans--consequently a shopper should be attentive to what they're doing.

Answer 9

Tell the builder's agent he's full of it.

Answer 10

Talk with realestate board, and give them names so they can correct the seller's agent's point of view. Did you sign a contract with seller agent?