I recently purchased a house that is still in escrow. The agent that showed me the house told me that the house was a new listing. In fact, it is so new that he still had the listing in his briefcase and it was not submitted yet. The agent took me to see the house and push me on purchasing the house. He kept saying that I would get a good deal on the house because he is going to work with the seller to save money.

I found out later that he made a deal with the seller to give him cash (so it could not be traced)for a referral fee. He did not submit the listing. The brokerage company he works through ended up with nothing even though he is their agent. the seller is going to save on commission and he will work out a deal and get a "referral fee" from the seller.

He then told me that he has worked out something with the seller but that he cannot be involved in the negotiation of the offer between the seller and me as he is pretending that he knows nothing about it. I decided to make an offer on the property and the agent insisted on being there. He also chimed in and put in this opinions and advising the seller. All the time, telling me that I was getting a great deal. I was stilling there with no representation. When the agent came to the negotiation, the seller and I had basically come to an agreement on the price but not the other things like appliances, closing date, conditions ... etc. However, once the agent was there, he was telling the sellers what to say and also telling them that they should not give in to appliances ... etc. Basically the discussions after that did not go very well.

Can someone please tell me how an agent can take cash from the seller for the referral when he has the listing? How can he behave this way? Is there anything I can do about his interfering in our negotiations?

Thanks

By the use of your term "in escrow," it would appear that you most likely are not doing business in the Province of Ontario, or perhaps even in Canada, and maybe you are an American, as that term is most often used in the States. However, wherever you are located there is a policing system in place that governs the actions of Realtors (presuming the agent in question is a Realtor - not all are) with one of the major goals of the industry being to keep the business "clean."

First, contact the owner/broker/franchise manager where the agent works. Determine if he is even licenced. Next contact the Real Estate Board for the appropriate area; ask for the rules and regulations department. If there isn't a department called that, ask for the contact information for the Governing Council or the department that takes care of public complaints. They will direct you as to whom to address your story. And, they will take it from there, on your behalf.

This story that you write almost sounds concocted by someone who has had a bad experience, with a whole lot of details missing. More details would be required, and the whole experience needs to be documented in writing and filed with the appropriate authorities; if true, charges could be laid, fines levied, and perhaps an agent might even lose their license to practice real estate. If true, this is a very serious industry-related offence. No one can tell the owner of the house what he or she must do; likewise, no one can tell you what you must do, either. Guidelines all must "follow the root of the contract." Contact your attorney and have him/her read your contract. You may have a course of legal action. This is not legal advice. For legal advice you must seek your own counsel.


"Going where tomorrow is - hope to see you there." Carolyne

Proudly putting my name to my work :
CAROLYNE Realty Corp. Real Estate Brokerage
Brampton real estate = http://www.carolyne.com
http://www.TechOrganizer.com = http://www.MyBackUpBook.com/

Thanks Carolyne for your response. I am new to Canada so not sure what the term is. I am waiting for the house closing. Is that the right term. The house is in Ontario. I am trying to omit details in this forum so as not to identify the agent.

The agent lives near my new house, so I want to make sure if I complaint, he is not going to be making trouble for me.

In Ontario who should I contact. Also, should I start all this after the house has closed. The seller informed me that the agent has contacted him for money and he has given him some. He is going to give him the rest at closing.

In my opinion you MUST seek legal advice IMMEDIATELY, "before" closing. There may be other "issues" needing addressing appropriately prior to closing in order to protect your personal rights as well as your personal property rights. In Canada the law is meant to protect you and your interests, in all areas, and there are specific laws relating to the transfer of ownership of property. The owner of that house may also be in jeopardy and may not know it. Since I am not an attorney I cannot advise you how to proceed.

However, here is some information that may help you in the interim. I would recommend that you send your complaint mail using Canada Post Express Post delivery, and instruct the post office that you want someone to sign as having received your mail, and I would further follow-up with a fax and a phone call to the numbers below.

They are very busy and may not react to your complaint contact immediately. While you are doing all this, absolutely contact your lawyer, ASAP (fast), to seek legal instruction. There is much more going on than you are using words for here in the forum, which is fine; except you MUST PROTECT YOURSELF. It can only get worse if you do not do so. You must stand up for your own rights in this country and you are free to do that and no one can punish you for looking for help and advice. You made a very good start by writing to this forum, but we are not permitted by law, to get into specifics.

Best of luck with this mess, and you may want to report the outcome on the forum when you reach a finalization of the facts and the results - in an effort to help someone else out there so they do not have to go through the same situation.

Start by visiting this web site:

http://www.reco.on.ca/

At the left side of the screen there is a list. Click on the word in the list that you will see: Complaints


Follow the directions there, part of which I've copied for you here.

Complaints may be submitted by fax, mail or e-mail to:

Real Estate Council of Ontario
Office of the Registrar
3250 Bloor Street West
East Tower, Suite 600
Toronto, ON M8X 2X9
Fax: 416-207-4820
E-mail: complaints@reco.on.ca


"Going where tomorrow is - hope to see you there." Carolyne

Proudly putting my name to my work :
CAROLYNE Realty Corp. Real Estate Brokerage
Brampton real estate = http://www.carolyne.com
http://www.TechOrganizer.com = http://www.MyBackUpBook.com/