I have been working with a customer for the last couple of days. He went to look at a house about 2 weeks ago. The listing agent of the house showed him around. Now the customer wants me to put an offer in on that house. He said he had rather use me than the listing agent. I do not know the listing agent but I want to be ethical so what do I do?

Does your customer have signed representation with you, or did he sign a representation agreement with the listing agent? It's all about who has signed representation. Simply ask if he's under contract with another agent. If no, go for it!

He has not signed any representation. Do you think I should let the other agent know the situation since he is the listing agent?

The listing agent will know the situation when you present an offer.

Seriously, if this buyer wants to work with you, have them sign an exclusive right to buyers representation and write the offer for them.

I've showed homes to buyers who ended up buying through another agent, and I've represented buyers who have previously looked at homes through other agents but didn't sign anything with any of them. It's all about relationships, obviously these buyers feel they have a better relationship with you than they do with the listing agent. It's just part of the business.

First, congratulations on a loyal buyer, Jamar. Not that common in this business. You're doing something right!

I'm not a lawer but the listing agent can claim "procuring cause" - even without a signed representation. Check with your broker and/or attorney on your local rules and laws.

I paid a referal fee in a in similar situation. And gladly Everybody wins: the listing agent sells the listing, you sell a house, your buyer gets a new home, you both get paid, and you'll maintain a good repuation. That alone is worth a few dollars.

JMAR this will depend on if you are both REALTORS or not.

Ethics is part of NAR not your state's real estate commission.

So your issues do not center around license laws. Sometimes in MLS agent puts if we show you get 1 percent instead of 3 percent.

See the seller agrees to pay the listing broker and the listing broker agrees to share x percent of the commission with the selling broker based on them completing x,y,and z.

So I would write up the offer and submit and see what the listing broker/agent does. If they make a big stink about it get your broker involved. If this is an REO listing the broker is more motivated to double-end the deal as they are already paying 1 percent to an asset management company that gave them the listing to sell.

Before you write the offer, make an appointment and show THIS buyer the house. And get a buyer agency agreement signed.

If it becomes a procuuring cause issue, the LA will have to show that he mainntained contact with this buyer and was part of an unbroken chain of events leading to a sale.

And no matter how "loyal" this buyer is to you, don't expect them to become involved in a procuring cause issue. Buyers generally don't care how much you get paid.

Back in the dark ages, there was a threshhold rule that basically stated that the first person to get the buyer through the door was entitled to the compensation. It doesn't work that way anymore.

I am thinking along the line lines of PA.

Thanks for all the great advice. This really helps.

Had this happen to me last week. A loan company called with a customer. The buyer viewed the home with the listing agent, but did not want the dual agency.

I set up the appointment and then call the listing agent to touch base. Without allowing an explaination, the following happened;
1) He said I was unethical and would not be in the business long
2) He was going to kick my F------A--.
3) I stopped the rant and requested that we meet in person
4) He then says, " bring it on B----, I will bury you
5) I respond by laughing
6) He hangs up
While not prone to using force, I am 6ft 2 and 215. The agent in question is a little over 5 ft. Funny though, we were at the same closing office Friday and nothing happened. Something about a cell phone that makes folks brave.

Representation seems to be the biggest problem. Have you and your client signed an agreement of representation? I recommend that you contact the other Realtor just to make sure you don't step on any toes. I have dealt with a similar situation but after talking to the other Realtor involved it turned out to be a successful deal and everything worked out accordingly.

Tommy Lorden

www.coloradocommissionrebate.com

After talking with my customers again I decided to tell them I didn't feel right about writing up a offer on that house since the other agent had already showed it to them a week earlier. It was hard to do but at the end of the day I know it was the right thing to do.