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Old 12-04-2011, 10:22 PM
 
1 posts, read 1,363 times
Reputation: 10

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About a month ago, I made an offer thru AgentA on a house, and the offer price was too low. After some negotiation and verbal increment, i was told owner accepted the price and we could go into the signing the contract. I never sign any agency agreement, nor did I never sign any new binder with the new price. After some thoughts, the house needed too much work, and price is too expensive, so we changed mind, and did not proceed.

I recently saw the listing agent of the house (agentB) in one of the random open house event i went to, and we brought up this topic again. He told me if i go thru him, we could have done it cheaper.

I would like to know if i proceed with this deal thru AgentB (the listing agent of the house), will i get a lawsuit from AgentA if he finds out? Am i obligated to pay comission to AgentA?

I do not feel AgentA could help me, and i have already stopped seeing houses with him. Again, we never sign any agency agreement.

thanks in advance.
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Old 12-05-2011, 07:18 AM
 
Location: Manhattan
22,306 posts, read 29,464,673 times
Reputation: 10235
I'll preface with "I'm not sure."
Musing on it I'll say that it is a bit unethical, but not drastically so.
Usually the saying that "all real estate transactions must be in writing" comes into play.

So if you have not signed any agreement with Agent A, have not signed an offer to buy the house, I don't think you actually have any conrtractual ties with Agent A. (He strikes me as a bit of a dummy not having you sign an exclusivity agreement of some kind.)

If I read the situtation right, Broker B would bget the commission and then perhaps SPLIT it with Broker A, the guy who brought him the potential business. If A has a claim it should be against B not against you.

But please, get a lawyer's opinion on this before you proceed.


If it was me, I'd probably walk away from the house.
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Old 12-05-2011, 10:39 AM
 
Location: Washington, DC & New York
10,863 posts, read 26,917,610 times
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Ethically, the listing agent should not have even attempted to solicit your business as the last they knew, you were a client of the other agent. For that alone, there could be ramifications with respect to discipline from the real estate board. However, what strikes me as a red flag is that they are implying they can lower the price without consulting the seller as an attempt to get you to buy the house. The agent acts is the best interests of the seller only, as they are the listing agent, and dual agency is nebulous at best, unless dealing with some of the most ethical agents in the business.

My guess is the discount is merely the commission split from removing the other agent from the equation, though I doubt the listing price will substantially change, unless it was a stale listing that was due for a price reduction anyway. It is the listing agent's job to get the highest price possible for the seller, as that is to whom they owe fiduciary responsibility. They may reduce their own commission to enable the successful completion of a deal, but that's the only amount of money an agent can play with in any deal, without consultation with the seller on your new offer through the listing agent.
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Old 12-05-2011, 10:46 AM
 
Location: Long Island, NY
7,846 posts, read 11,152,011 times
Reputation: 9201
Where is broker A in the picture now? If another broker is listing the house and you didn't sign any agreement with broker A then you shouldn't have a problem. When I was looking for a house I used 2 other agents before I finally found my agent. I never signed anything with those other 2 agents. The house I bought was not listed with my agent. it was with a different real estate agency all together. The listed agent got the commission. My agent got her commission from the mortgage broker. Figuring out commissions is very complicated. The best way is through a lawyer.

I agree with Kefir King...stay away from the house. You know when the house is right for you when you walk in. If you had doubts the first time then that just wasn't the house for you.
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Old 12-05-2011, 11:31 AM
 
1,933 posts, read 3,306,796 times
Reputation: 1942
Quote:
Originally Posted by bmwguydc View Post
Ethically, the listing agent should not have even attempted to solicit your business as the last they knew, you were a client of the other agent. For that alone, there could be ramifications with respect to discipline from the real estate board. However, what strikes me as a red flag is that they are implying they can lower the price without consulting the seller as an attempt to get you to buy the house. The agent acts is the best interests of the seller only, as they are the listing agent, and dual agency is nebulous at best, unless dealing with some of the most ethical agents in the business.

My guess is the discount is merely the commission split from removing the other agent from the equation, though I doubt the listing price will substantially change, unless it was a stale listing that was due for a price reduction anyway. It is the listing agent's job to get the highest price possible for the seller, as that is to whom they owe fiduciary responsibility. They may reduce their own commission to enable the successful completion of a deal, but that's the only amount of money an agent can play with in any deal, without consultation with the seller on your new offer through the listing agent.
^^^^^^^ This!
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