Any recourse to get money that was promised to us by our real estate agent?

Question

We recently purchased a property in Boston, MA. We found a great agent that we liked, mainly because he told us that he was going to give us 25% of his commission at closing. It is now 3 months later and we have not received anything from our agent. He is not returning our calls and keep telling me via email that he will follow up with us and never does. We never signed anything stating the 25%; however we have saved all of the emails mentioning the 25% showing that we at least had a verbal contract. Is there anything that we can do to get our money from this real estate agent? Thanks!

Added - the agent is the broker in this case.

Answer 1

This is a very common practice in real estate, but because it cannot be done in writing on the sales contract it is sometimes hard to ensure it will happen or that your agent is being truthful.

But I would also recommend getting in touch with the broker that sponsors your agent (assuming he is not his own broker) and explain the situation to him. I am not sure you will have enough documentation to pursue him legally, but if you talk to his boss and let him know you mean business it might work.

However, as the other man said above in some states this type of kickback after closing is not legal (like here in Texas it is not allowed and so is done "under the table"). So your next course of action will depend greatly on whether this type of practice is allowed in MA. Call the title office or escrow officer that closed your house and check with them. Because it was all done verbally it might not be allowed there either.

Good luck!

Answer 2

I would give him a final "warning" that if the issue is not resolved within the next week (give him a specific date and time) that you will be going to the better business bureau, the Board of Realtors and the Real Estate Commission and filing a formal complaint against him. I would send the letter to him in writing, registered mail, returned receipt requested so he knows you mean business. You could also mention that you are planning legal action depending on how firm you want to get at this point. Then if he does not respond file the complaints with the agencies I mentioned and/or take legal action. They will look into the situation and determine if you have a case and take any necessary action against him if necessary. That is if he has done something unethical etc. they will possibly give him a formal reprimand and/or take his license away from him.

In the future you should never rely on a verbal agreement for something like this. Always get it in writing. It is good that you have the emails and that may suffice in this case. Good luck

Answer 3

First of all, if you have an email stating that he'll rebate 25% of his commission to you, that's a written agreement.

Just ask Bill Gates if emails can be used against you in court. He got nailed for some of his own in his antitrust suits.

I'd send him one final letter, via certified mail with return receipt. In this letter, include a copy of the emails promising the rebate.

Let him know that he has 10 days from receipt of this letter to get you a check. If he doesn't, you will send a copy of all correspondence with a complaint to the state department of real estate (or whichever state office licenses real estate brokers, some states it's commerce dept. Look up your state to be sure). And also you'll file a complaint with the local board of realtors. This will cut off his access to the MLS, and could make him lose his license or have it suspended for breach of ethics.

These agencies take this stuff very seriously. If you have in writing that he promised you money you didn't get, I believe this is the best way. And be sure to follow up and file those complaints if he doesn't pay within your 10 or 15 day timeframe.

Answer 4

I find it laughable that the usual rubes will say that if an agent shows you a property without a written agreement---including if you visit an open house that the agent is sitting---then they are entitled to the commission when you purchase. However, the first thing out of their lying mouths when the agent owes the buyer money, is you are not entitled to your money because you did not have a written agreement.

Speak to his broker first and if the broker does not take care of it, explain to him that you must go to the BBB, professional associations, and governing state entities for remedy. Then actually do it. If nothing else the liar will receive penalty for poor ethics and potential fraud, especially if you only accepted him as your agent because he offered a rebate. If rebates are illegal in your state, then it most certainly is illegal to fraudulently promise one. First, print out all of the emails where he mentions a rebate offer so that you have a hard copy and them back them up on a separate zip; ALL of them. Funny things start happening to computers and email when someone is about to get sued.

Answer 5

You should have put it in writing and made sure that the lender was aware, because you are in a tight spot whether you get the money or not. If you don't, you would want to sue the jerk; but if you do receive it, you have violated the terms of your financing because you sign a form at closing that says that there are no undisclosed outside agreements. This outside agreement is a major one, because it means that you didn't really invest as much in the property as you claimed you would (even if you receive the money after closing, it still is money as a result of the purchase). I'd still sue him, though. Next time, make sure that the money is on the contract AND the settlement statement so that it's totally above board.

Answer 6

As with anything in real estate, that must be in writing to be legally enforceable. Those e-mails don't count as being in writing and verbal agreements are worthless.

Unless the e-mail system is secured by certificates to prevent modification and provide for non-repudiation -- and the vast majority of e-mail systems are NOT -- there's no valid audit trail or way to prove that they are unaltered or even came from whomever they are alleged to have come from. It might be possible to do a forensic audit to prove it, but the cost of that would far exceed any benefit to you unless you are talking about a multi-million dollar property.

In many states that type of kickback is illegal, as well as any side agreements outside of escrow, so you probably have no legal basis at all to recover.

You can make a complaint to the broker or the state real estate board but don't expect that to get you any money.

Answer 7

It is illegal for a licensed agent to offer a non-licensed person a fee on a Real Estate deal. It is unfortunate that you guys may have been talked into buying this property because of the promise of a fee.

Answer 8

Do you know what your state law is in regards to you geetting a piece of the commission? I know in my state (Ohio), its illegal. I dont know what Mass law is. Assuming its legal- I would just go file a claim in small claims court (I am assuming here that 25% of his likely 3% commission will be less than $5000). Just getting notice that you are suing him might be enough to get him to pay- if not, then I think it sounds like your email evidence is likely enough for you to prevail.

Answer 9

If I were you I would first off speak to his broker and then if that does not work you should call the Real Estate Commissioner for your area. The last effort should be to obtain a lawyer and take him to court. Of course if you have to do that you ask for all fees as well.

Good Luck.

Answer 10

The broker is your best bet. If not, contact the local department of real estate office and let them know.