In my quest for FSBO's, I run into this all the time. People who paid someone $295 to toss their property on the MLS. Am I bound by the rules of non-interferance in those cases too? A significant number of those end up listing with full representation and I want in on that!

Since the "listing" agent isn't being paid a commission, what difference does it make to them... they already got paid to list it.

Anyone know?

-jeff

This is between you and me, so don't tell anyone. I definitely go after these. I don't view it as interference with an agency relationship, since IMO no de facto relationship exists. I treat them similar to FSBO's and take it from there.

Your secret is safe with me!

-jeff

Jeff,

It REALLY depends on the contract the seller has signed. The form of compensation is not relevant (remember, even a full service agent can get a flat-fee, consultation payment, commission, etc.).

Yeah. I know that the seller's "agent" isn't doing much of anything. But, if they have a contract that provides an exclusive relationship --- even with limited duties --- you must respect it.

Here's why:

* That agent can sue you for interfering with their agreement (it is called tortious interference with contract).

* That agent, if a member of NAR, can refer you to the local ethics board for violating the Code of Ethics.

* And, your state may have a statute that allows your real estate licensing authority to discipline you.

The key is that contract. Get a copy. Review it to see if their is any sort of exclusive representation provision. If ANY doubt, give to your broker for review.

It's the right thing to do. And, in most cases, you'll find you can pursue them. But, don't assume.

Jeffo

In my area most of these are done with open listings and I have no qualms about trying for an exclusive. So as someone else said review the listing agreement.

Thanks Brian.

The only way to do that is to ask the seller to see it, right? Seems like even just THAT could be construed as interfering with a listing, no?

-jeff

...and therein lies the dilemma. How do you go about getting a copy of a contract that you have no business looking at...?

Do you ask the client? (that could potentially be argued as interference)...

Do you ask the listing agent? (good luck, although...if it IS a Limited Service agreement and they'd already been paid...they might not be adverse to helping you get your foot in the door for a referral fee (I've done that before with an expired I couldn't find contact information for.)

Do you sit and hope that the client calls you and initiates contact? (maybe)

Are you a lawyer with the proper background to interpret a contract even if you DID get your hands on it? (I know, I know...you can read and understand...that doesn't mean that you're qualified on paper).

To me, personally...that's an iffy road that I wouldn't even bother travelling down. There are too many other ways to generate good business.

Some rules can be bent. To me, a limited (read: no service) service listing is pursuable. In reality, who is going to complain? I'm going after one tomorrow 3 weeks before expiration. But that's just me. What, I'm going to stand on ceremony and wait till expiration date to line up with the other non-aggressive agents to beg for an audience? Um, no.

All it will take is a couple of complaints from the agents in question and you will find yourself in front of the real estate commission and then without a license looking for a job.

I apparently misunderstood the question.

My assumption was what could you do if approached by someone with a "limited services" contract.

Instead, it looks like the question was whether or not one could pursue them.

Answer has to be no. You have an ethical obligation (both in the Code of Ethics & beyond) to respect other members of the profession and their clients.

Brushing that aside, doing so is a great way to get fined, lose your license, or, at minimum, be accurately characterized as pond scum.

Personally, I'd rather not be in that category.