Thread: Accidentally stumbling into Transaction Broker situation???

PS: If this is true, how do we get representation? Pay our own commission so to speak to a buyer's agent? Get a real estate attorney? Some sort of consultant?

If Agent A showed you the property you have an offer on, she is going to feel entitled to that commission and rightly so. The time to look for representation was when you were looking to purchase searching residences, after you've written the offer you've already signed on to your representation with Agent A. You are attached, at least for that particular property you wrote the offer on. Unless you were not clear with Agent B, I cannot understand why Agent B would work for free. Agent A does have the procurring cause as she not only showed you the place but also wrote the offer.

Now, if you wish to not sign the addendums and move on to find another house/condo you can use Agent B but for the sake of your future offers, I wouldn't write another offer with Agent B on any of Agent A's listings. From what you've said, it doesn't sound like you've signed any exclusive buyer representation so in that regard you shouldn't be attached at all to Agent A except on that property.

Lastly, since you've said you are uninformed please let me give you some sincere from the heart advice about Realtors. Over 95% of them do not get paid on an hourly or salary basis. Realtors get paid only when title transfers and you have your keys. Our time isn't free and your decision to fetch another agent AFTER you've written an offer and recieved the addendums was more than bit offensive (if you will). Sales are our livelihood and Agent A was / is defending her livelihood. Unless Agent B is new or was not explained the situation entirely, I cannot see why on earth he would try to step into this situation. Again, unless I'm not seeing something here, there is no way he would or should get paid on the transaction Agent A wrote up with you.

Please remember, this is how we earn our living / design our life. If you income depended on the same set of circumstances, you'd probably feel the same way.

Good luck.

Originally Posted by RandolphMantooth

We knew about dual agency and wanted to avoid it. That was always our intent.

If you knew about dual agency and really wanted to avoid it why were you calling listing agents to show you their listings?

If you were relying on driving around and calling on signs then I have no doubt you have not seen some of the best properties out there. Get a good agent and let them help you find what you have been missing.

I know you think you can find everything for sale on the internet because i deal with people all the time who think they know the real estate market because they can look on their own. But I routinely find properties for them that they missed and they end up buying something they were unaware of.

The problem with shopping on the internet is you are using pictures to make a decision. It doesn't work and it never will.

Thanks for your frankness. So simply put, just by her showing us the house and coming to my office to have me sign the papers, she becomes becomes our agent in this transaction and earns her half of the commission? I know it's buyer beware--and she has given us no specific reason to doubt her -- but in general, is a person poking around an MLS or driving around for the first time supposed to just know that just by calling the listing agent, they are automatically starting the ball rolling toward dual agency or a broker transaction, essentially giving up a lot of rights to seller-paid representation at the table? Or is that just so obvious that few people wouldn't have thought otherwise? I just feel like at some point, someone should have said "You do realize if you don't have an agent and I show you this house, you abandon a traditional single-agent style re this property..." Most business transactions involve a contract or disclosure of some sort that you are entering into an agreement. Her agreeing to give us two hours of her time shouldn't mean she gets a second $9,000 commission and we're out a committed advocate. I can see Agent B giving up part of his commission for the Buyer's agent time -- if he still wants to reprsent us -- but double commission for her two hours of representing us?

Greg, we knew about dual agency, we just didn't know how easy it is to enter into one. That's prob naive. Your part about shopping on the net and missing homes is a good one, thanks. We had some medical issues that kept us from going out with a broker for several months, so we kept looking online, trying to find homes we could eventually be shown. We'd drive by some if we were already out. Once we were back in the swing of things, we were going to call an agent. It was kind of a fluke that we called and saw this place. We were told by submitting an extremely aggressive offer on this condo that we were just getting our names in there and getting the bank moving. She didn't say that by signing this standard state-wide contract that we were committing to her as our agent for this. Maybe we were naive though. Thanks, Greg.

Hello-

It is a little difficult answering your question - because the laws concerning agency and its disclosure do vary from state to state - but in general terms it sounds as though you entered into this contract as an unrepresented party. You are entitled to representation at any time during the process. You have several options here - buy the one that probably makes the most sense is to hire an attorney. You will need an attorney to close - so bringing one in early to help with contract issues won't hurt.
It really is too late to bring in another broker as your representative at this point in the process - and would be unfair to Agent A and B.
The previous poster offers a good point - if this deal falls through - get yourself represented BEFORE you sign another contract.

Good Luck-
Glenn

A buyer who is poking around looking at several homes using the listing or open house agent to show them isn't necessarily obligated to anyone. At the moment though you signed the contract with her to purchase the condo, that's it. That is a serious step. If it was her showing you the property that was the cause in you deciding to purchase the condo, it won't matter if you have your own representation outside of her.....she can still arbitrate for that commission and the representation you hired would have worked for nothing.

Check the documents you signed, there is a pretty good chance you did sign some sort of agency agreement. I can't speak specifically for your state but those disclosures are most likely there and as you did say, you did have a written offer. The fees are certainly on that paper. Our contracts also have an area designated for representation where each side of the transaction signs off, take a good look at what you got.

If Agent A is offering her help as a Buyers Agent while waiting for the bank to respond to the written offer - sounds pretty much like the buyer in this instance is an unrepresented party. As far as the fee is concerned - as there was no cooperating broker - the listing broker is entitled to the full commission. That's the reason why you bring in an attorney now as opposed to another real estate broker - there is no commission to split if this deal does through.