I represent a Buyer who's looking to buy a house in my area.

This Buyer is also selling her house through a different, low-commission independent agent/broker. The house has been on the MLS for 110 days. She's has only 10 showings, the seller has to print her own flyers, the selling agent doesn't return calls for weeks on end, no offers, etc.

This Buyer wants to fire her Selling Agent and have me sell her house, too! I’m flattered, but I know I’m in a very precarious situation.

Let me shout: I DID _NOT_ SOLICIT THE BUYER TO DO THIS -- THE BUYER APPROACHED ME FIRST ABOUT THIS, ON HER OWN.


My client is asking me advice on how she can terminate contract with the other agent.

I am doing EVERYTHING possible to be neutral and not influence my client. My client has a standard Texas Listing Agreement with the selling agent, with no special provision about fees.

How can I do this and avoid any trouble down the road?

Thanks

I think the best way to go about doing this is to tell your client to call the other agent's broker and let them know that she wants out of the contract. Tell her to bitch and complain to the broker about the company's service. She might end up getting completely out of the contract if she's lucky.

I don't think this is your problem to worry about. You never solicited her about it. She came to you. I don't see anything wrong with helping people get what they need. If you don't tell her what to do, then she will probably have a huge lack of knowledge about how to get out of her contract. I don't think it's fair to take advantage of the misinformed people. It sounds like that's what the other agent is doing.

We get a lot of complaints about the "discount" brokerages and sellers wanting to get out of their listing contracts. So far, the company here won't let them withdraw, and they are hung up with at least a six month listing contract. I don't want to start a fight here, I am just saying that I get a lot of complaints because they didn't realize what they were getting into.

Have your client contact the listing broker and tell them she wants out of her listing agreement because they are not performing as promised. Quote the failure to return calls and any other problems. Should they refuse have her contact her attorney and perhaps a letter from the attorney will make them see the error of holding her to the contract. She needs to be on them constantly should they refuse to release her from the listing agreement. Call and e-mail every time she has a free moment. If she has a list of questions or complaints she should make a list and make 25 copies of it and load it into the feeder tray of her fax machine and keep sending it till she get her answers. If the broker insists on keeping a client that does not want him then he better be prepared for that client to become the demanding client from hell!

> It sounds like that's what the other agent is doing.

BTW, I did some research on the other agent. Again, she's an independent agent/broker in a small town and has little competition.

She's had 32 listings this year. Of those, she's sold ONE and had 26 listings expire.

I think it's mostly just VERY bad service. Amazing -- this is a $320,000 listing.

First off do you even want this listing?What is is priced it and why is it not selling?Before listing i would make sure it is priced right.

I had an older lady really nice call today she said she was thinking of selling and wanted 200k,i told her only one home had sold at 200k and that was a 4/3 and hers is 8 years older and a 3/2.I told here to expect to get about 175k to 180k.

Be upfront,and be honest with people.They will either come down to earth or stay up in the clouds in denial.If it is the latter i wish them well and move on.

Check in the contract to see if there is a survival period where they are due a commission.

Sounds like the discount broker is listing at overinflated prices just to advertise and pick up buyers.

Example:Broker lists homes at low fees and tells homeowner what they want to hear.Puts sign in yard and get's calls from the buyers.Buyers say this home is overpriced can you show me more?Broker says of course and shows homes that are priced right.The broker does nothing for the seller except use there yard as free advertising to pick up buyers and knows it's overpriced so they won't put a nickel into marketing or advertising the property.

If they can't get the seller to reduce to sell the home then the broker refers the home off to a full service place and collects a refferal fee when it sells.

This is why minimum service laws need to be passed,it's the seller that pays the price.

The discounters will argue it stifles competition,not true.If discounters negotiated the contract and gave full service to the seller and could do it at there low commission then it wouldn't be a problem.

The problem comes in when the listing agent provides hardly any services and forces the selling agent into a dual agency role for half the commission.

I list people mainly in pre-foreclosure so i don't deal with competing with 10 people for the listing.Usually they are happy i can just help them out with there problem.

Full service people give bad service to.All i know is if i have to do both people's jobs i will get all of the commission.

jmho

I'm going to put this in all-caps because i AM shouting it...

ATTEMPTING TO HELP SOMEONE GET OUT OF A LEGAL CONTRACT IS PRACTICING LAW AND UNLESS YOU ARE A LAWYER YOU CAN AND SHOULD GET PENALIZED FOR IT. THE ABSOLUTE MOST YOU SHOULD DO IS RECOMMEND THE PERSON TALK TO A REAL ESTATE ATTOURNEY.

obviously, do whatever you want to do - if nobody finds out, you're fine...but you're treading on shady ground.

solicit the listing for after their current contract is expired and recommend they seek legal counsel - that's the best you can ethically do. (technically)

i dont think anyone was talking about practicing law. i think most of us are saying that the agent should tell their client to contact the broker if she wants out of her contract. if the broker wont do anything about it, then i am sure we would all agree that she should go to an attorney.

> First off do you even want this listing? What is is priced it and why is it not selling?

Yes, I would like the listing. I think it is overpriced about $10K, but I also think it's woefully undermarketed. It's about 3 times the price houses sell for in that area.

The agent is doing the MLS only, and nothing else.

ATTEMPTING TO HELP SOMEONE GET OUT OF A LEGAL CONTRACT IS PRACTICING LAW

Yes, I know this is a touchy issue. I tried calling my local RE Association, to direct my client their way, but they were of no help.

The agent is NOT returning the calls, and the sellers are getting anxious. They're looking toward me for help, and I'm just trying to help them, as they've asked.

again...the best thing you could do is solicit their listing for after their current agreement is expired, and if they want to get out of their current contract early, advise them to seek legal counsel (the money spent will be well worth their while).

your local association isn't going to get caught practicing law, either...all you can do is refer them to seek legal counsel.

for reference see articles 13 and 16...
http://www.realtor.org/mempolweb.nsf/pages/code

obviously, you do what you're gonna do - but just be aware that if you get pulled in front of the ethics panel - you're walking a thin line.

talk to your broker, and call your lawyer - they'll let you know how to handle it.

If she approached you.You are not doing anything unethical by talking to her. If she is actually getting poor service and she really feels that way and can show the other realtor why or how and it is not related to her pricing or the overall market conditions there is no reason why the other realtor would not release the listing as long as they are compensated for what they spent already marketing the property. You may bring to her attention what you would do differently and tell her to try to work it out with her present realtor as it dosnt make sense for her to spend extra cash to compensate the other realtor and then pay your full commission. I would tell her to try to resolve the problem if possible,If there is no way to resolve it then she can ask for a realease or wait until the listing expires and you will be happy to take it on.You will gain her respect and be doing the right thing.The other option would be to remain silent and let her know that you can only take the listing if it expires or if the other broker gives her a release.If she wants legal advise on how to obtain a release she should see a lawyer if she cannot resolve it herself.
If you have to question something your doing and it doesnt smell right it usually isnt.How would you expect another realtor to handle the situation if it was your listing ? There is your answer.