Is there liability to the buyers RE agent if the seller and buyer have a conversation w/o the agent knowing?

Question

Our RE agent was with us for a LONG showing where we met the owner/seller.

Later, after thanking the seller for a kind gift (a book he wrote), by phone, He invited us back over for a moment.

As it was very preliminary, we went without our agent, to listen. He did explain some unusual challenges he faces in the sale. Its been listed 7 months with no offers. We did not come to terms or strike a deal of any kind, but got a better idea of what he wants (to remain on the property for 5 years for example).

We now feel ready to make a formal offer. We have called our RE agent to write up the offer, per normal protocol, and she has said that since we have spoken directly to the seller without her knowledge, she is certain she will lose her RE license. This seems totally emotional and silly to us. According to the 1st amendment we can talk with whoever we want. She gets paid of course, but is sure we have ruined her. Is she right? Does she have any liability at all?

Answer 1

She's not emotional, she's right. She has a license and there are specific rules she must follow. Yes she has liability. What is silly to you is the law and her license to her.

The 1st amendment allows you to do a lot of things but since the states are sovereign, they can make their own laws for certain things and licensing requirements and disclosure requirements involving someone's paycheck are not part of your 1st amendment right.

You took her paycheck in your hands. She certainly could lose her license especially if your new "friend" decides to report her.

You goofed. She could get hurt. What about her rights to earn a living without losing her license?

Answer 2

Your agent is seriously over reacting. Get a new one. This one is obviously new to this business.

The first poster on here could not possibly be more misleading or wrong. Unless you were trying to cut your agent out of a commission (not possible since you state you want her to write up the offer now that you are ready) you have not done anything wrong.

Your responsibility is to yourself. Your agent is not representing your interests if she is laying this guilt trip on you. She should be celebrating that you have come to the point of making some kind of an offer.

Call her broker and find a capable agent without a complex. If you want to, you can make sure she gets a referral fee if you think she has earned it. Otherwise, let her freak out on someone elses nickel.

How could any judge anywhere hold an agent liable for a meeting that occurred without her knowledge?. It is absolutley ludicrious to even consider such a thing. Instead of losing her license, she should be losing you as a client for this type of hysterical assertion.

I have 30 years in the real estate business and I am well aware buyers communicate with sellers and vice versa. It can happen at the grocery store, at church, at work etc. It is after all their right.

As an agent, I am held to some regulations, but my clients? no.

I SUGGEST that clients have me present at all meetings just so I can be there to interpret or assist. After all thats what they pay me for. That said, I would NEVER presume to tell my client never to speak to a seller.

The downside is that you may have killed your own deal by pissing off the seller in some way, but it sounds like you two are getting along fine, even exchanging gifts...unusual.

New agents often freak out about things like this, because it is drummed in the head of every new agent like communist propaganda. The main concern they have is the loss of commissions. There has never been a case where someone lost a real estate license because a buyer and seller talked without their knowledge. Buyers and sellers talk all the time.

Tell your agent to lighten the hell up and write your offer. If she refuses, there are only something like a million other agents who would be glad to jump in and take the commission and take care of you in the process.

Sometimes, agents are their own worst enemies. You have done nothing wrong. Good luck

Answer 3

Your agent is a complete idiot who doesnt know what she is talking about. There is obviously no liability to her or anyone else for that matter.

Be smart. Fire her immediately and get referred to a new agent who can act with professionalism.

A house purchase is one of the largest buys a family will make in a lifetime and you deserve better representation than this.

At minimum, she owes you a huge apology. I am a broker and have 17 years representing buyers and sellers and have never heard such a dramatic, baseless reaction from an agent.

Is this your cousin or something?

Seriously consider that you have an agent who obviously couldnt tell her *** from a deed of trust. I agree with the answer speculating there may be drugs involved. When people are overreactive like this, you have to wonder what is going on.

Not only were you well within your rights to do this, it sounds like it helped you get to the transaction you want. Be happy in your new home.

Answer 4

I think she has been smoking crack, and the poster above is 250% wrong.

Real Estate agents are NOT responsible for the behaviors of their clients, they function in a consulting role only. It's just like an attorney is NOT responsible for the behavior of their clients, they provide consultation and advice.

She has zero liability, and if I were you, I would call the broker-in-charge of her firm (because that is technically who your agreement is with, not the agent), explain what happened, and ask for representation from another agent.

I highly suspect that you have a brand-new, extremely inexperienced agent who has no idea of what she is doing if she is telling clients that kind of nonsense.

Also, just a personal FYI, never, ever in the future, if you are using a Realtor, talk about a sale outside of the agents. This is actually for your own protection, because you have no idea of this guy is trying to blow smoke up your butt, and anything he says, DO NOT take it to the bank...order everything you normally would, a survey, inspection, etc.

Get a new agent!

Answer 5

She's clueless. As long as you were not attempting to cut her out of the sale you have done NOTHING wrong. And since she has done nothing wrong she can't possibly lose her license. Tell this drama queen to get her head on straight or you will ask her broker to replace her.