Need more opinions--Sorry so long!! ;)

[bookworm2768]

Originally Posted by ImGibby

I agree that there should have to be some sort of actual agreement for the client to agree to use "X", but I also see TraderJacks point of view that by them agreeing to allow "X" to show them properties that is the "assumed" agreement...and from the builders perspective they walked in the door with "X", so "X" must be representing them. It's a bit arbitrary and probably a matter of semantics at this point....Realtors are not going to work for free. I'm not sure of the legal aspect here, or if the MIBOR code of ethics or standards of practice cover this? What constitutes a binding legal agreement with a Realtor?

I don't think that's how it works but that is something a realtor would know. I do know that when we came on a house hunting trip to Texas a realtor showed us a few homes and told us that we were under no obligation to use his services until we signed an agreement with him. We did not end up using his services. the realtor we are currently using told us the same thing. Until we signed the agreement we were not obligated to use her.

[TraderJack]

The 'commitment' that you allude to is between the Realtor and the builder. When an agent brings a buyer to the builder, that agent is entitled to compensation from the builder. It really does not matter if the buyer and the agent have signed any agreement between themselves.

The commitment between the buyer and the Realtor is implied, unless the buyer signs a document that says the buyer agrees to work only with that Realtor.

Each regional governing Board of Realtors has their own version of that agreement. This agreement is meant to prevent this sort of misunderstanding.

The real issue here is a severe lack of communication between the buyer and the agent. If that agent were working in my office, we would be having a long conversation.

[Mortgagegirl]

I loved your comment first off! My name is Kim and I work for a mortgage company here in Indianapolis. I would simply tell "A" that if they want your business they need to leave "X" out. And if "X" continues to butt their nose where is doesn't belong I would turn them into mibor or their managing broker. "A" is so hungry for business they I'm sure they would be more than willing to kick "X" out of the picture. Hope this was helpful. Let me know if there is anything I can do to help.

Kim

[ImGibby]

Bottom line here is yeah, there has to be some sort of formal agreement....the client should maybe have been more dilligent and realize what "X"'s agenda was, but this supposed negligence should by no means lock them into using "X"'s services if that is not what they want...I still feel as if "X" tried to fly in under the radar based off of the information given thus far.

I've bought several houses, I just don't particularly recall if there was a written agreement or whatever that you had to sign...it was never an issue with me, I had a house I wanted to buy, i knew who my realtor was going to be, and I called them up and told them to get it done and signed whatever it was they told me I needed to sign. But it does seem here that legally, some sort of disclosure would be required on "X"'s behalf.

[TraderJack]

Gibby, you're comment is right on the money. You knew what you were doing and you knew who your Realtor was what he was going to do for you. And your relationship was such that you probly did not need any document to solidify your commitment to each other.

That's the part the OP did not do. He should have shopped for a Realtor -before he shopped for houses. Negotiating a complicated contract is something a novice should not tackle. Always seek representation before you buy.

I hope they get it worked out!

[Michelle Morris]

In my office, it is not common to use the Buyer/Broker agreement. I feel that if I have not satisfied the client, they should be able to freely go elsewhere. To me, the client becomes mine when we write up a purchase agreement. THEN, it is too late for them to use someone else. If I take them to a house to show it to them, I am technically the "procuring cause" and should get paid, but I try to do a good job of being sure my clients understant how and when and why I get paid. I explain about going to builders, and open houses and that other sales agents might try to steal them from me.

Now, if the Realtor showed you the house, and you wrote an offer on it, then, yeah, they are your agent. It stinks that they didnt explain it to you, but they are getting paid by the builder.

If you seriously want them out, talk to their managing broker, or to MIBOR, then call an agent who you trust (like me- haha!)

[TraderJack]

Thank goodness we have some 'real' agents out there like you MikiJayne.
Keep up the good work!

[Missy B.]

Same thing happened to us. Unfortunately, we got stuck with the agent who got paid a big fat $10K for a property WE found. When we expressed disinterest in dealing with her, we were told that she registered us and there was nothing we could do about it. As far as the commission, I am a firm believer that the buyer pays the commission not the seller because it IS included in the sales price!

[Michelle Morris]

Missy, I guess we're just going to have to agree to disagree. Builders pay Realtors from their advertising budget, not from the proceeds of the house. They would lose too much business if they discouraged using a realtor in any way. Now, an individual seller may add to their price to pay commission, but they shouldn't.