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#454290 - 09/05/16 05:11 PM former client reporting a bad realtor
questions Offline
Junior Member

Registered: 08/11/16
Posts: 4
Loc: USA
In a recent real estate transaction, we came across a bad realtor. He represented us in a dual agency FSBO situation and then, when we showed concern about some of his errors, he said he wouldn't represent us anymore. We were the buyers in this situation. He told lies about us to try to end the deal, and we feel he broke confidentiality as well. There are other questionable things he did, but those are the main points.

Fortunately, the deal went through, though not without a lot of headaches for us. I am not a litigious person, but I do feel he broke away significantly from realtor professionalism and responsibility. I have read through some options for reporting him (e. g. talking to managing broker, realtor ethics board, realtor state board), but I'm not sure which way is the best to go here. I live in a medium sized community where the realtors are all pretty tight with each other. Furthermore, he works for a younger small firm and is friends with his managing broker. Any advice?

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#454291 - 09/05/16 06:10 PM Re: former client reporting a bad realtor [Re: questions]
Vermont Offline
Major Contributor

Registered: 04/12/08
Posts: 7505
Loc: Vermont's North-East Kingdom
"IF" it was truly a FSBO situation, then clearly, the Agent DID NOT represent the Seller, and you say he did not represent you . . . . so how's that Dual Agency ?

If the Agent had a written Buyer Broker Agreement with you, then a written Contract CANNOT be terminated with a simple unilateral verbal statement by just one of the Parties.

It sounds like s/he was't representing anyone (except his/her Broker) !
_________________________
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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#454292 - 09/05/16 07:31 PM Re: former client reporting a bad realtor [Re: Vermont]
questions Offline
Junior Member

Registered: 08/11/16
Posts: 4
Loc: USA
Basically, this realtor was called in to draft the contract by flat fee that the seller paid. We didn't pick him; the seller did. He said he'd be a neutral party. He chose to say in the agency section of the contract that we both signed that he was representing both seller and buyer. When things got hairy, he wanted all of us to amend the agency part of the contract saying that he was only representing the seller and not the buyer. It was all very strange to us not being in the real estate business.

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#454294 - 09/05/16 08:04 PM Re: former client reporting a bad realtor [Re: questions]
Vermont Offline
Major Contributor

Registered: 04/12/08
Posts: 7505
Loc: Vermont's North-East Kingdom
So there was NO Listing Agreement with the Seller; and NO Buyer Broker Agreement with the Buyer . . . . ONLY a Purchase and Sales Contract (P&S) between the Buyer and Seller.

I can't comment on what I can't see or read, and you don't mention which State you're in; but it doesn't sound like the Agent established any fiduciary responsibilities to either Party.

Where was that "Flat Fee" defined and what specifically was he obliged to do in return ?

I think I suggested to you a couple months ago that this matter should have been placed in the hands of a competent Attorney in whatever jurisdiction you are located in.
_________________________
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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#454295 - 09/05/16 08:31 PM Re: former client reporting a bad realtor [Re: Vermont]
questions Offline
Junior Member

Registered: 08/11/16
Posts: 4
Loc: USA
We did have a lawyer look over the documents to ensure we were protected through the transaction. The P&S included a clause saying that the seller would pay him a flat fee upon sale of the house as required in a dual agency situation in the state, but it did not include his responsibilities. I don't know if the realtor had another contract with the seller detailing that.

I don't want to sue, but I do want present the situation to the right people to know that he did poorly, bordering on unethically. Do you have any suggestions on the best way to do that? I understand if there's not enough info to determine that.

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#454302 - 09/06/16 05:52 AM Re: former client reporting a bad realtor [Re: questions]
Bigtoe Offline
Major Contributor

Registered: 10/14/07
Posts: 2194
Loc: Outer Banks
If all the agent did was draw up the contract and you had your attorney look at the contract, what could the agent have done wrong?
_________________________
Your Outer Banks real estate agent. Helping people buy and sell OBX real estate since 1989.

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#454303 - 09/06/16 05:55 AM Re: former client reporting a bad realtor [Re: questions]
Vermont Offline
Major Contributor

Registered: 04/12/08
Posts: 7505
Loc: Vermont's North-East Kingdom
You keep saying it was a Dual Agency situation . . . . but based upon the information you have provided, IT WAS NOT; only if the P&S that was drafted somehow sufficed to served three(3) functions: List the property for the Seller as a Listing Agreement; created an Buyer-Broker Agency relationship between the Buyer and the Agent; AND define the Sales Contract between the Seller and Buyer. If all the Agent did was fill in the blank spaces on some standardized and pre-printed for your State (whatever that is), then it really could not be modified to perform a of those functions.

I still don;t know what State you're in; but it's doubtful that you have a basis for complaining about the Agent failing in his fiduciary responsibilities to you because he had NONE! And you clearly understood this from the getgo; that's part of the reason you were choosing to purchase from a FSBO . . . . to save the money that might be earned by an Agent from the Transaction.

Have the Attorney who looked over the P&S examine the matter to ascertain whether there was some "implied" Agency for you as the Buyer; but I'm not seeing it that way . . . . you had No Contract with the Agent, you WERE NOT a Client, merely a Customer, and the Agent owed you no allegiance.

Your State Real Estate Commission may assist you in establishing that the Agent had somehow created an "implied" agency even without a formal Buyer-Broker Contract, and that you somehow came to trust and rely on him, and were then taken advantage of by him; but that will be an up-hill battle, and warranted ONLY if you can prove substantial losses.

Alternatively, and again depending upon which State you're in, the Commission may simply conclude that you were just gullible and refused to pay for the representation that you are now claiming was negligent. I do not know the details of what the actual complaint is about . . . . sounds like postpartum regrets ?
_________________________
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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#454314 - 09/06/16 04:02 PM Re: former client reporting a bad realtor [Re: questions]
Tex Offline
Member

Registered: 02/11/14
Posts: 199
Loc: TX
Originally Posted By: questions
We did have a lawyer look over the documents to ensure we were protected through the transaction. The P&S included a clause saying that the seller would pay him a flat fee upon sale of the house as required in a dual agency situation in the state, but it did not include his responsibilities. I don't know if the realtor had another contract with the seller detailing that.

I don't want to sue, but I do want present the situation to the right people to know that he did poorly, bordering on unethically. Do you have any suggestions on the best way to do that? I understand if there's not enough info to determine that.


You mentioned that you are in a medium sized community. You bought a FSBO to save money. You had a lawyer. You say that you do not want to sue.

What do you stand to gain with a complaint? All I see is that you have everything to lose and nothing to gain.

I would think that in this medium sized community that you would be better off just being quiet, enjoying your home, and making new friends. Otherwise you might get "Facebooked" and alienate some locals.
_________________________

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#454389 - 09/11/16 11:52 AM Re: former client reporting a bad realtor [Re: questions]
Brian Paul Offline
Member

Registered: 08/30/16
Posts: 20
Loc: California
I agree with the other poster, the agent appears to have been paid to only draft some paperwork and was not representing anyone. Seems the buyers and sellers found each other and hired someone to draft some paperwork, but had higher expectations.

This is a prime example of why it important to have representation, this agent did not represent anyone so you have two parties who know nothing about real estate trying to close a transaction with a paper pusher in the background just drafting some paperwork. I cannot see any attorney taking this case or any complaint going anywhere...

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