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#168424 - 09/08/07 07:56 PM Has anyone ever sued a buyer for a commission?
Dawn Rupe Offline
Junior Member

Registered: 09/08/07
Posts: 8
Loc: Florida
I often wondered if an EBA is really worth doing because in the end if you had to sue the buyer for the commission would it be really worth it?

So hence the question. What was the process and what was the cost?

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#168579 - 09/10/07 05:26 AM Re: Has anyone ever sued a buyer for a commission? [Re: Dawn Rupe]
Devil's Advocate Offline
Veteran Member

Registered: 01/03/05
Posts: 538
Loc: Ontario, Canada
A buyer’s broker agreement or exclusive buyers agreement is usually a two-party contract between the buyer and the brokerage firm, and the decision on whether to sue or not is up to the principal broker.

A good buyer agreement should be iron clad and is usually recognized by the courts, providing the brokerage firm fulfilled their obligations under the contract.

The dollar amount of the claim would dictate in which court the case would be heard, and the amounts may vary from one jurisdiction to another.

I, suggest you telephone the local court house and they will give you all the required information about how and where to file a claim.

Important Notice: This information is provided as basic educational information by the author and is not a substitute for the advice of an expert and/or the advice of a lawyer. There is NO representation as to legality, accuracy, correctness of the herein information and the reader is strongly urged to consult a lawyer in the relevant jurisdiction to ensure accuracy before acting on this information

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#169212 - 09/13/07 12:46 AM Re: Has anyone ever sued a buyer for a commission? [Re: Devil's Advocate]
Dawn Rupe Offline
Junior Member

Registered: 09/08/07
Posts: 8
Loc: Florida
(and the decision on whether to sue or not is up to the principal broker.)

Never crossed my mind. Good Point, It would behoove agents then to talk with their brokers to find out their position on this matter.

I am just asking the question here. Why have EBA if in the end you would have to sue to get your money. Is it realy worth it?
Especially if a buyer has a hard time coming up with their down payment. Even if you won in court you would never get your money.

I personally think a better solution is to get paid for the services an agent offers up front. Time is money and educated people should get paid well like any profession.

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#169325 - 09/13/07 05:08 PM Re: Has anyone ever sued a buyer for a commission? [Re: Dawn Rupe]
pikes peak Offline
Major Contributor

Registered: 12/15/04
Posts: 2783
Loc: CO
Only when it's worthwhile.

http://www.hollywood.com/news/Seinfeld_Loses_Real_Estate_Battle/3611066

"I personally think a better solution is to get paid for the services an agent offers up front. Time is money and educated people should get paid well like any profession."

That's a business model that has really not caught on yet, since most buyers need every penny to buy and don't have the cash up front to pay their agent.

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#208553 - 03/04/08 04:50 AM Re: Has anyone ever sued a buyer for a commission? [Re: pikes peak]
Forsalebyweb Offline
Member

Registered: 11/28/07
Posts: 92
Loc: Minneapolis, St. Paul, Minneso...
 Quote:
That's a business model that has really not caught on yet,


You are absolutely correct. What I've seen agents do is offer both options. Pay upfront and save or pay more at closing.

My experience has been that most consumers do not want to buy and sell fsbo for the same reason that they don't want to pay upfront.
_________________________
We are different mostly through personal experience!


- Sol Sek
Founder of http://www.forsalebyweb.com
The Automatic Way to Buy and Sell Real Estate!

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#209050 - 03/05/08 09:09 PM Re: Has anyone ever sued a buyer for a commission? [Re: Forsalebyweb]
Spartacus Offline
Member

Registered: 01/23/08
Posts: 171
Loc: Portland, Oregon
In my opinion (for what it's worth), I think an EBA should be used more to train and educate your buyers. Let them know the benefits of the EBA and using you as an agent, and let them know what happens if they buy without you. Let them know exactly what to do if they are at an open house w/o you. This solidifies in their mind that you are their agent. I think this "training" will bypass most issues.

If they do buy w/o you, then it is up to you and your broker whether it is worth pursuing further.
_________________________
Spartacus

“Life isn't about finding yourself. Life is about creating yourself.” George Bernard Shaw

www.homesellingteam.org/

www.homesforsaleoregon.com/



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#214320 - 03/24/08 04:43 PM Re: Has anyone ever sued a buyer for a commission? [Re: Spartacus]
Earl Offline
BANNED
Member

Registered: 02/03/08
Posts: 275
Loc: Ca
Even if you win, you lose. Getting the attorney fees paid isn't guaranteed. The buyer having money to pay isn't guaranteed.

There is another approached. Worked for me long ago.

I had this young kid buy a home we had listed. He wanted to back out about a week before the close. Seems he saw a home at an open house that week and decided he liked that one better. He tried to bail out of his government loan. I said you can't legally do that. He said his employer was his friend and would just say he got laid off as a legit way to get out of the contract. So, I used the Ace up my sleeve. I said you're willin to lie to the government to back out of this deal? That's fraud. Fraud is a felony. The FBI investigates felonies when it comes to federal loans. So, if you back out, I'll give the FBI your info and do my best to make sure you end up in prison. We closed a week later.

Now before the 'experts in their own mind' steps in, more than likely nothing would have happened to him as the FBI, while they could do sometime, was probably too busy to do something. It's called a bluff. It worked. The seller didn't get screwed.
_________________________
Why don't anti-gun people have stickers in their windows that say
"This is a Gun Free home"?

You can't soar with Eagles
If you fly with Turkeys

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#214357 - 03/24/08 07:10 PM Re: Has anyone ever sued a buyer for a commission? [Re: Earl]
pikes peak Offline
Major Contributor

Registered: 12/15/04
Posts: 2783
Loc: CO
 Quote:
"Why don't anti-gun people have stickers in their windows that say
"This is a Gun Free home"?"


Quizz of the day!
If people with guns protect, how come no one is allowed to have a gun around the President, except Sec. Service? Wouldn't more guns provide more protection?

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#214396 - 03/24/08 09:07 PM Re: Has anyone ever sued a buyer for a commission? [Re: pikes peak]
Earl Offline
BANNED
Member

Registered: 02/03/08
Posts: 275
Loc: Ca
Answer of the day

Some folks with guns are nuts. That's why no one with guns except for an elite few are allowed around the Prez.

Any more questions for Captain Obvious?
_________________________
Why don't anti-gun people have stickers in their windows that say
"This is a Gun Free home"?

You can't soar with Eagles
If you fly with Turkeys

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#214413 - 03/24/08 10:00 PM Re: Has anyone ever sued a buyer for a commission? [Re: Earl]
pikes peak Offline
Major Contributor

Registered: 12/15/04
Posts: 2783
Loc: CO
 Quote:
Answer of the day
Some folks with guns are nuts. That's why no one with guns except for an elite few are allowed around the Prez.
Any more questions for Captain Obvious?


ok, now I understand. The normal people with guns can't be trusted either, because they are also not alowed with guns around the president?
Lesson 4 the day. You just can't trust strangers with guns, unless they all wear the same uniform. ;\)

p.s. Well, as reported in the news tonight, even someone in uniform can't be trusted, as the pilot flying from Denver to S. Carolina fired his gun in the cockpit.


Edited by pikes peak (03/25/08 02:34 AM)
Edit Reason: add p.s.

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#214427 - 03/24/08 10:47 PM Re: Has anyone ever sued a buyer for a commission? [Re: pikes peak]
Gulf Winds Offline
REO Slave
Major Contributor

Registered: 02/04/06
Posts: 1715
Loc: USA
I have, and won.

Seller (a retired RE broker) sold his property to one of our prospects that we showed the property to, 11 days after the expiration of our listing. We have a clause in our board approved form that addresses this situation. It calls for a commission to be due and payable if the property is sold within 180 days of the expiration, to anyone that we presented the property to. He met the buyer while we were at his home showing it! He also signed acknowledging the prospects who were shown the property upon the listing expiration.

He looked like an idiot on the stand. The judge ripped him apart. He claimed to not understand. The judge just asked him to tell the court what profession he retired from and how many years he was involved in that type of business! That did him in right there.
_________________________
"There are people who make things happen, there are people who watch things happen, and there are people who wonder what happened. To be successful, you need to be a person who makes things happen.." - James Lovell- Astronaut

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#214429 - 03/24/08 10:56 PM Re: Has anyone ever sued a buyer for a commission? [Re: Gulf Winds]
pikes peak Offline
Major Contributor

Registered: 12/15/04
Posts: 2783
Loc: CO
 Quote:
That did him in right there.


Congrats! It never fails to amaze me what people will do, including the ones that should know better.
I'm also stunned at all the attorney disbarments and sanctions I've heard about recently.

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#214708 - 03/25/08 08:33 PM Re: Has anyone ever sued a buyer for a commission? [Re: pikes peak]
Bigtoe Offline
Major Contributor

Registered: 10/14/07
Posts: 1696
Loc: Outer Banks
The question was did anyone ever sue a buyer over a commission.
_________________________
Your Outer Banks real estate agent. Helping people buy and sell OBX real estate since 1989.

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#214712 - 03/25/08 08:42 PM Re: Has anyone ever sued a buyer for a commission? [Re: Bigtoe]
pikes peak Offline
Major Contributor

Registered: 12/15/04
Posts: 2783
Loc: CO
 Quote:
The question was did anyone ever sue a buyer over a commission.


I haven't, but probably could have. However, it would have cost more in time and money than the commission was worth. (besides the aggravation)

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#220975 - 04/19/08 09:29 PM Re: Has anyone ever sued a buyer for a commission? [Re: Dawn Rupe]
Devil's Advocate Offline
Veteran Member

Registered: 01/03/05
Posts: 538
Loc: Ontario, Canada
UPDATE: Re: Has anyone ever sued a buyer for commission.

HOMELIFE/VISION REALTY INC. v. HELEN CLUBINE
In the fall of 2005 Buyer executed a ("local") Standard Form "Buyer Broker Agreement", (now called a Buyer Representation Agreement) but subsequently bought through another agent violating the terms of the Agreement and the Superior Court of Justice-Ontario has ruled on April 09, 2008 that the buyer has to pay Homelife their fee, of $21,774.50 plus interest and costs.

Court Decision at the following URL
http://www.canlii.org/en/on/onsc/doc/2008/2008canlii14891/2008canlii14891.html

Important Notice: This information is provided as basic educational information by the author and is not a substitute for the advice of an expert and/or the advice of a lawyer. There is NO representation as to legality, accuracy, correctness of the herein information and the reader is strongly urged to consult a lawyer in the relevant jurisdiction to ensure accuracy before acting on this information .

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#221146 - 04/20/08 10:06 PM Re: Has anyone ever sued a buyer for a commission? [Re: Devil's Advocate]
Vermont Offline
Major Contributor

Registered: 04/12/08
Posts: 6064
Loc: Vermont's North-East Kingdom
If you're not in a rush, instead of tying up the Court System, you might also consider just putting a Lien on the Property that your Buyer(s) bought by recording a copy of what is hopefully a nicely drafted and properly executed Exclusive Buyer Agency Agreement. An outlay of maybe $25 to $50 +/-. If everything is well documented, and your files are complete, you'll receive deferred gratification.

Besides, the Buyers will probably have more money at the time they become Sellers in a few years; hopefully more than they had at the time of the Purchase. Sending them a copy of your Lien by Certified Mail should put them On Notice that you'll still be waiting there when they go to Sell.

Brokers are typically approached early on to settle up for some reduced amount; and the Culprits do get angry, but nobody broke their arm(s) to sign the EBA. I think it's more embarrassment than anything else; and a big batch of mis-directed hostility which should properly go towards "the person in the mirror" who tried to cheat.

Creative Lien Management can save a lot of time and money; and the Land Records DO NOT FORGET.

Important Notice: This information is provided as basic educational information by the author and is not a substitute for the advice of an expert and/or the advice of a lawyer. There is NO representation as to legality, accuracy, correctness of the herein information and the reader is strongly urged to consult a lawyer in the relevant jurisdiction to ensure accuracy before acting on this information .


Edited by Vermont007 (04/20/08 11:12 PM)
Edit Reason: punctuation issues
_________________________
Dale C. Hittle of GOLDEN RULE PROPERTIES in Glover, Vermont
Where We're Always Striving To Put Together "THE FAIR DEAL"

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#221632 - 04/22/08 04:24 PM Re: Has anyone ever sued a buyer for a commission? [Re: Vermont]
pikes peak Offline
Major Contributor

Registered: 12/15/04
Posts: 2783
Loc: CO
 Quote:
If you're not in a rush, instead of tying up the Court System, you might also consider just putting a Lien on the Property that your Buyer(s) bought by recording a copy of what is hopefully a nicely drafted and properly executed Exclusive Buyer Agency Agreement


Obviously, individual agents who are contemplating doing anything like this, should run this by their broker, who I hope is smart enough to consult an attorney before taking such actions.
(although there is a disclaimer, I thought it was an important reminder)

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#221693 - 04/22/08 07:24 PM Re: Has anyone ever sued a buyer for a commission? [Re: pikes peak]
Devil's Advocate Offline
Veteran Member

Registered: 01/03/05
Posts: 538
Loc: Ontario, Canada
LOCALLY: The legal term that I am most familiar with is what is referred to as a “Lis Pendens” which translates into “pending litigation” and where the rules regarding same may vary from jurisdiction to jurisdiction.

In my jurisdiction an action (lawsuit) must be filed first, then a “Lis Pendens” in relation to the property in order to notify any interested party, that there is a pending legal action (claim) and that the property in question will be subject to the legal disposition of the Plaintiff's claim by the court.

This is not to be confused with a legal judgement awarded by the court for a specified amount and which is filed as a lien against the property.

Important Notice: This information is provided as basic educational information by the author and is not a substitute for the advice of an expert and/or the advice of a lawyer. There is NO representation as to legality, accuracy, correctness of the herein information and the reader is strongly urged to consult a lawyer in the relevant jurisdiction to ensure accuracy before acting on this information .

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#261150 - 11/23/08 03:01 PM Re: Has anyone ever sued a buyer for a commission? [Re: Devil's Advocate]
Agent_Mark Offline
Member

Registered: 11/21/08
Posts: 27
Loc: Montreal Canada
Inspiring article about Seinfeld..LOL

All this due to religious views...

For what its worth. A $3.95 million town house.. That's a sweet sale. According to the article it states that she will be receiving an amount between $98 000 and $119 00.

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#261520 - 11/26/08 02:31 AM Re: Has anyone ever sued a buyer for a commission? [Re: Agent_Mark]
Austin TX Agent Offline
Member

Registered: 05/22/08
Posts: 44
Loc: Austin Texas
That Lis Pendens thing sounds all well and good, but you're better off just getting the judgment and if the transfer was completed and money is not available to settle the judgment then that might be considered a fraudulent transfer. If you go around filing that lis pendens thing and you lose, but caused the person that you are suing to lose money then you'll be right back in court, but this time you'll be getting sued. Or so is my understanding. Of course, I'm not a lawyer and this isn't legal advice. :)

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#382040 - 07/06/11 08:58 AM Re: Has anyone ever sued a buyer for a commission? [Re: Dawn Rupe]
Florida Girl Offline
Member

Registered: 07/06/11
Posts: 10
Loc: Florida
Yes. I have sued for commission on an EBBA and won. Unfortunately, I found out the below information AFTERWARDS.

Florida advice!!!!!!!!

I was advised by a FL real estate attorney that I should add the following to my EBBA contracts:

[i]"Pursuant to Florida Statutes Section 475.42(1)(j), Buyer hereby grants Broker the right to place a lien on a Property purchased by Buyer to ensure payment of services rendered."[/i]

He said he's been trying for years (unsuccessfully) to get the FL Assoc of Realtors and the FL Bar to add this language to their recommended EBBA contracts. So he suggests realtors add it to their own EBBAs.

[u][b]FL statute 475.42(1)(j):[/b][/u] [b]A broker or sales associate may not place[/b], or cause to be placed, upon the public records of any county, any contract, assignment, deed, will, mortgage, affidavit, or other writing which purports to affect the title of, or encumber, any real property if the same is known to her or him to be false, void, or not authorized to be placed of record, or not executed in the form entitling it to be recorded, or the execution or recording whereof has not been authorized by the owner of the property, maliciously or [b]for the purpose of collecting a commission[/b], or to coerce the payment of money to the broker or sales associate or other person, or for any unlawful purpose. [b]However, nothing in this paragraph shall be construed to prohibit a broker or a sales associate from recording a judgment rendered by a court of this state or to prohibit a broker from placing a lien on a property where expressly permitted by contractual agreement or otherwise allowed by law. [/b]

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#382048 - 07/06/11 12:28 PM Re: Has anyone ever sued a buyer for a commission? [Re: Florida Girl]
Devil's Advocate Offline
Veteran Member

Registered: 01/03/05
Posts: 538
Loc: Ontario, Canada
Florida Girl

I may not be interpreting this Florida Statute correctly, but my interpretation of what is says, is that you cannot put the cart before the horse, in other words you must follow their rules of practice and procedure and must first obtain a court judgement which validates your claim and only then may you record your court judgement on file, utilizing their required forms and procedures.

This particular Florida Statute goes on to describe what is and is not acceptable, pursuant to their rules of practice and procedure.

This is similar to local law, where the plaintiff must first, successfully obtain the court ordered judgement, putting them in the legal position to go after the “judgement debtors” assets, if any, to satisfy their judgement.

IMPORTANT NOTICE: This information is provided as basic educational information by the author and is not a substitute for the advice of an expert and/or the advice of a Lawyer. There is NO representation as to legality, accuracy, correctness of the herein information and the reader is strongly urged to consult a lawyer in the relevant jurisdiction to ensure accuracy before acting on this information.

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#422902 - 04/21/13 03:41 PM Re: Has anyone ever sued a buyer for a commission? [Re: Devil's Advocate]
sualk54 Offline
Member

Registered: 03/20/13
Posts: 116
Loc: Hamilton, ON
Four suits in 13 years and one pending

First, Buyer under agreement bought FSBO- lost at trial due to technicality, I didn't have his wife on a witness list so she was not allowed to testify, she was crucial

Second, Buyer under agreement bought new construction in her husbands name for $500k plus, her name was put on title on close. Her defence was she didn't know hubby had bought a house. I claimed $12.5k plus taxes, settled out of court for $8500 all in

Third, my Seller accepted my Buyers offer in competition and refused to close. She then sold it privately to a guy who lost out in competition and tried to pocket the commission. We settled out of court for $1000 less than my claim

Fourth, Buyer under agreement bought estate sale home directly from the Seller, it was a FSBO. We had previously done a couple of offers for him that were not accepted on other properties. Settled at the pre-trial conference for about $1000 less than our claim

Pending- goes to trial May 6- Buyer playing "stoopid card", says he can't understand the documents [written in lay terms] he signed. He is a machinist supevisor for a company that makes aircraft landing gear assemblies and deals with highly technical documents and drawings

From a dollar perspective, it is stressful and time-consuming to go after these people and I could have spent my time on something more productive so it actually cost me money to go to trial. However I want to get paid for what I have completed or was ready to complete

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#423026 - 04/25/13 12:56 AM Re: Has anyone ever sued a buyer for a commission? [Re: Dawn Rupe]
pikes peak Offline
Major Contributor

Registered: 12/15/04
Posts: 2783
Loc: CO
Wow, this thread has been going on for a while. I retired last October but still have an active license and purchased a short sale in Denver, fixed it up and are living there now.
Below is the statute regarding liens by brokers against an owner. This is only granted to Commercial transactions and not residential.

"This August the playing field will be leveled for commercial real estate brokers who are owed lease commissions. For many years, commercial brokers have lost commissions because the cost to pursue litigation against a non-performing building owner can be prohibitive. With strong support of the Colorado Association of REALTORS®, the Denver Metro Commercial Association of REALTORS®, and REALTORS® across Colorado, the Commercial Real Estate Brokers Commissions Security Act ("HB-1288") ("Broker Lien Law") was recently passed by the Legislature and signed by the Governor. It will become effective August 11, 2010."

http://www.rothgerber.com/showarticle.aspx?Show=1332

p.s. I love being retired.

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#423440 - 05/07/13 12:46 PM Re: Has anyone ever sued a buyer for a commission? [Re: sualk54]
sualk54 Offline
Member

Registered: 03/20/13
Posts: 116
Loc: Hamilton, ON
see my earlier post, just a couple up

Judge didn't like the fact that my Buyer Representation Agreement showed Jane Jones & Sam Smith as the Buyers when only Sam bought the house

However he found the testimony of the Buyer "to be evasive and full of deceit and contradictions", he said this several times while reading his verdict and found in our favour

$7500 commission + $975 HST + costs of $1250 + pre and post judgement interest were awarded to us, it'll cost the Buyer about $10k in total

It still sucked up about 3 weeks of my time and distracted me from finding new business

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