Shar NJ 1 Report post Posted December 5, 2011 I successfully found a TB for a seller last week and all has gone smoothly. However, today I got a call from a panicked seller that heard from the agent they had the property listed with. Agent tells them they are being sued for the commission. How can that be if they house is not recorded as sold and the agent never had it listed as a rental? Any info? Thanks Share this post Link to post Share on other sites
MichaelC 160 Report post Posted December 5, 2011 The devil is in the details and language of the listing agreement between seller and Agency. Tell him to read the listing carefully to see if he is responsible for the Agency's fee. Share this post Link to post Share on other sites
ErikOk 10 Report post Posted December 5, 2011 I successfully found a TB for a seller last week and all has gone smoothly. However, today I got a call from a panicked seller that heard from the agent they had the property listed with. Agent tells them they are being sued for the commission. How can that be if they house is not recorded as sold and the agent never had it listed as a rental? Any info? Thanks Shar, Are you receiving a threat of being sued, or just the seller? I'm very interested in hearing responses from others since this was a listed property. Share this post Link to post Share on other sites
Shar NJ 1 Report post Posted December 5, 2011 I'll keep you all updated how things turn out. The agent is upset since "his sign" was still on the lawn. Also, the TB's were there on Sunday, an agent went to show it and the TB'ers turned them away. Share this post Link to post Share on other sites
Shar NJ 1 Report post Posted December 5, 2011 I successfully found a TB for a seller last week and all has gone smoothly. However, today I got a call from a panicked seller that heard from the agent they had the property listed with. Agent tells them they are being sued for the commission. How can that be if they house is not recorded as sold and the agent never had it listed as a rental? Any info? Thanks Shar, Are you receiving a threat of being sued, or just the seller? I'm very interested in hearing responses from others since this was a listed property. I haven't heard a peep from the agent. He told the seller he wants commission. Share this post Link to post Share on other sites
MichaelC 160 Report post Posted December 5, 2011 I haven't heard a peep from the agent. He told the seller he wants commission.Nor should you. The listing agreement is between Agent and homeowner, not you.Sounds to me like the Agent is angry over the loss of his potential commission. Like I said above, it will all depend upon the specifics of the listing agreement. Share this post Link to post Share on other sites
ErikOk 10 Report post Posted December 5, 2011 I'll keep you all updated how things turn out. The agent is upset since "his sign" was still on the lawn. Also, the TB's were there on Sunday, an agent went to show it and the TB'ers turned them away. So TB'ers have already signed the contract & moved in? If yes, I don't see why the agent is complaining. You said that you found the TB last week. So maybe the Seller should have called that agent to let him know so that that he could take his sign down. Anyhow, I don't see how the agent is due a commission by having another agent turned away by the TB'ers. Like Michael said though, the devil is in the details whether or not a commission is due. I would not think so, at least until the TB'ers decide to exercise their option. Something like this happening is what always makes me wonder whether the listing should be expired before approaching a Seller. Good luck with the situation. Share this post Link to post Share on other sites
Shar NJ 1 Report post Posted December 5, 2011 Yes, everything happened in only a few days. The seller signed with me last Monday, I showed it that night, the TB said they wanted it. I screened them and signed the paperwork with them Thursday. The seller sent the agency a letter and now the agent is livid. Michael, that is exactly the case, the agent is peeved that there is no commission for him. The house was on the market for a year before I sold it to the TB in one day. Share this post Link to post Share on other sites
ErikOk 10 Report post Posted December 5, 2011 Yes, everything happened in only a few days. The seller signed with me last Monday, I showed it that night, the TB said they wanted it. I screened them and signed the paperwork with them Thursday. The seller sent the agency a letter and now the agent is livid. Michael, that is exactly the case, the agent is peeved that there is no commission for him. The house was on the market for a year before I sold it to the TB in one day. How did you find the TB? Or I guess the better question is how did the TB become aware of the property? Share this post Link to post Share on other sites
Shar NJ 1 Report post Posted December 5, 2011 Yes, everything happened in only a few days. The seller signed with me last Monday, I showed it that night, the TB said they wanted it. I screened them and signed the paperwork with them Thursday. The seller sent the agency a letter and now the agent is livid. Michael, that is exactly the case, the agent is peeved that there is no commission for him. The house was on the market for a year before I sold it to the TB in one day. How did you find the TB? Or I guess the better question is how did the TB become aware of the property?I put it on my Facebook wall. I have been building it up in an effort to attract buyers. So far so good! http://www.facebook.com/pages/Equity-Home-...203738819674647 MC, if the link is not allowed please let me know and I will take it down asap. Share this post Link to post Share on other sites
ErikOk 10 Report post Posted December 5, 2011 I haven't heard a peep from the agent. He told the seller he wants commission.Nor should you. The listing agreement is between Agent and homeowner, not you.Sounds to me like the Agent is angry over the loss of his potential commission. Like I said above, it will all depend upon the specifics of the listing agreement. Hey Michael, I found these definitions: The exclusive-right-to-sell listing allows only the broker and his agents to represent the seller. With this listing, the broker is entitled to a commission even if the seller sells his property on his own without using the services of the broker. Because the broker is more certain of payment with this type of agreement, she will generally work harder in representing the principal with this type of agreement. In an exclusive-agency listing, only 1 broker has the right to represent the seller, but the seller has the right to sell his property without the broker and without paying a commission. Hopefully this Sellers contract is the 2nd choice. If it is the 1st choice, then they probably ARE due a commission, but not until the TB exercises their option to sell. Maybe if a property is listed it would be a good idea for us to ask the Seller whether it is exclusive-right-to-sell or exclusive-agency? Share this post Link to post Share on other sites
Jonathan RexfordFL 8 Report post Posted December 5, 2011 Well the contract is between the seller and the broker for sure. But the seller should have had the brokerage sign off as a release just incase of this same issue to come up. Here is what you can expect.Broker will sue them in small claims court or circuit court depending on the amount and there agreement. More than likely the brokerage contract has an arbritation clause.Broker will supeana the current Tenant/Buyers and your contracts will be part of the defense and also evidence for the seller.Broker will file a complaint with the State Licensing board, stating that you are practicing Real Estate without a license. Just be prepared, for some drama....because it is coming your way! Share this post Link to post Share on other sites
Shar NJ 1 Report post Posted December 5, 2011 Well the contract is between the seller and the broker for sure. But the seller should have had the brokerage sign off as a release just incase of this same issue to come up. Here is what you can expect.Broker will sue them in small claims court or circuit court depending on the amount and there agreement. More than likely the brokerage contract has an arbritation clause.Broker will supeana the current Tenant/Buyers and your contracts will be part of the defense and also evidence for the seller.Broker will file a complaint with the State Licensing board, stating that you are practicing Real Estate without a license. Just be prepared, for some drama....because it is coming your way!Okay, so I have learned...MUST ASK SELLER THEIR STIPULATIONS WITH REALTOR. Hopefully this won't turn into a lawsuit. The seller wants to meet with me tomorrow to sign a new contract. The TB's move in Jan 1st, they happened to be there Sunday showing the property to their family when the proposed buyers showed up. I used MC's contracts so hopefully that is enough in the event of practicing Real Estate without a license problems. Thanks for all the replies! Share this post Link to post Share on other sites
Jonathan RexfordFL 8 Report post Posted December 5, 2011 Well the contract is between the seller and the broker for sure. But the seller should have had the brokerage sign off as a release just incase of this same issue to come up. Here is what you can expect.Broker will sue them in small claims court or circuit court depending on the amount and there agreement. More than likely the brokerage contract has an arbritation clause.Broker will supeana the current Tenant/Buyers and your contracts will be part of the defense and also evidence for the seller.Broker will file a complaint with the State Licensing board, stating that you are practicing Real Estate without a license. Just be prepared, for some drama....because it is coming your way!Okay, so I have learned...MUST ASK SELLER THEIR STIPULATIONS WITH REALTOR. Hopefully this won't turn into a lawsuit. The seller wants to meet with me tomorrow to change the date on the contracts to todays date instead of December 1st so it reflects that the contracts are after he ended the agreement with the agency. The TB's move in Jan 1st, they happened to be there Sunday showing the property to their family when the proposed buyers showed up. I used MC's contracts so hopefully that is enough in the event of practicing Real Estate without a license problems. Thanks for all the replies! YIKES.....DO NOT CHANGE THE DATES. That just gives them a little gas for the fire. And also delete this part of the post. I would just cancel the contract and enter into another one. Do not change the date. That is just showing that you are trying to circumvent the broker. The last thing you want is to be standing in front of the judge and him asking you a question in regarding the date. Share this post Link to post Share on other sites
Jonathan RexfordFL 8 Report post Posted December 5, 2011 Even though I am a real estate agent, I operate as an investor on most deals. The last thing you want is to be brought up against the real estate commission.It is not fun. Being part of the nice brotherhood of NAR....which I prefer my friendsover at NRA. NAR is anal about taking care of there own. Share this post Link to post Share on other sites
