Welcome to City-Data.com Forum!
U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate > Real Estate Professionals
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 02-02-2008, 08:29 PM
 
Location: Raleigh, NC
173 posts, read 937,395 times
Reputation: 117

Advertisements

I have a question and need some advise:

I am/was working with a client and I have her under agency until the middle of March.

I wrote two contracts with this lady. The first contract wasnt accepted because she took too long to sign it and get it back to me. We wrote and negotiated (verbally) the second contract, but she didnt sign it. She basically stalled and now has found some reason for not wanting to work with me.

Anyway, today I was out showing properties and I see the client (who basically wasted my time with stalling) with another agent. At first I was going to let this client out of the contract she signed with me, but now I feel like SHE owes me. I dont work for free. I feel as though I worked very hard for this client.

What do you think? Also, what are my rights as an agent?
Reply With Quote Quick reply to this message

 
Old 02-02-2008, 08:44 PM
 
Location: Chaos Central
1,122 posts, read 4,094,903 times
Reputation: 902
Is this the same client as you posted in the thread
What happens if a buyer walks away from a contract?
?
Reply With Quote Quick reply to this message
 
Old 02-02-2008, 08:58 PM
 
Location: Raleigh, NC
173 posts, read 937,395 times
Reputation: 117
No, I just have two different issues going on at the same time. Everything isnt all bad. I do have two wonderful deals going on the close in Feb.
Reply With Quote Quick reply to this message
 
Old 02-02-2008, 09:27 PM
 
Location: Nashville, TN
1,177 posts, read 4,141,629 times
Reputation: 945
What do you think? Also, what are my rights as an agent?

I'll give you the same suggestion I gave you on your other thread-go to your managing broker and discuss this with him/her. If you don't understand your own agency contract, your state laws, and your rights, it's best to get guidance from your broker as they will have much more knowledge of these areas in your state than most anyone on this thread will.
Reply With Quote Quick reply to this message
 
Old 02-02-2008, 10:14 PM
 
Location: Cape Cod
1,038 posts, read 3,981,051 times
Reputation: 440
I agree with Gbone. You must speak with your Broker.
Reply With Quote Quick reply to this message
 
Old 02-02-2008, 10:21 PM
 
250 posts, read 1,373,496 times
Reputation: 148
I don't mean to be the voice of negativity here, so please don't take it that way. I don't know all of the details regarding you and your client, so this may not be applicable.

I do not recommend that you allow a client to have a contract so they can "sign it and give it back at their leisure". I'm not against letting people read over it at their leisure, but I'm a big fan of signing it with them rather than on their own. It serves two purposes. One, I don't waste my time prepping wasted paperwork. Two, I can ensure the the contract will not be held up my missed signatures, initials, etc. It's not a valid contract unless everything is signed, period. Anything prior to that is speculative, IMHO.

I also don't recommend verbally negotiating a contract. It runs into exactly the sort of issue you have. You spent lots of time and gained nothing. If it's not written down, it didn't exist, and it's important to remember that when dealing with real estate. It's never worth the lawsuit because "so and so said that you told them such and such". Have I verbally negotiated terms and detail before? We all have, but I don't do it if there has not been paperwork sent between all parties previously.

There's a gigantic risk I take by verbally negotiating, and it's a very easy way to cause buyers/sellers/agents to become unhappy. As a listing agent I tell other agents that if they're interested, write the offer and I'll submit it. What my client is "willing to take" is none of their business. It's also not my place to tell anyone that they may take less than the asking price. I would be doing a disservice to my client that way. On the flip side of that, I have no shame in asking a listing agent those same questions! I've actually been told by other agents that their client would take 100k less!

In regards to your rights as an agent, You should already know the answer to that one. It's you job as an agent to know and understand the contracts you write and that you have people sign. If you don't understand the paperwork you asked your client to sign, then you need to talk to your broke or office manager, and have them explain it to you.
Reply With Quote Quick reply to this message
 
Old 02-02-2008, 10:43 PM
 
Location: Gilbert - Val Vista Lakes
6,069 posts, read 14,726,354 times
Reputation: 3876
Quote:
Originally Posted by missnew2nc View Post
I have a question and need some advise:

I am/was working with a client and I have her under agency until the middle of March.

I wrote two contracts with this lady. The first contract wasnt accepted because she took too long to sign it and get it back to me. We wrote and negotiated (verbally) the second contract, but she didnt sign it. She basically stalled and now has found some reason for not wanting to work with me.

Anyway, today I was out showing properties and I see the client (who basically wasted my time with stalling) with another agent. At first I was going to let this client out of the contract she signed with me, but now I feel like SHE owes me. I dont work for free. I feel as though I worked very hard for this client.

What do you think? Also, what are my rights as an agent?
Missnew2nc, I have to be very candid in my response. From this thread and your other thread it really sounds like you need some mentoring.

It isn't entirely clear, but it sounds like you were representing a Buyer and she wrote a contract for a property. I don't understand the part where she took too long to sign and get it back to you, unless you're talking about a counter offer that a Seller made to your client, and your client missed the deadline.

On the verbal offer, that was a mistake on your part. Every real estate contract must be in writing. You can negotiate all you want, but until your client makes the signed written offer, then you don't have anything.

As far as not working for free, you don't earn any money until you have a completed transaction with the escrow closed. Until then all you have is a potential income with the risk of receiving nothing if it doesn't close.

When a client tells you that they don't want to work you, then you need to look inwards and try to determine what you may have done wrong to cause the client to want to make a change. Apparently you did something wrong in her eyes for her to drop you.

I have the feeling that you are new and/or have not had sufficient training, and she may have gotten that same feeling, and became uncomfortable.

Forget about suing. You have nothing to sue for. She doesn't owe you any money. Even if she doesn't go working with someone else, she can just say that she doesn't want to buy a house any more. The law suit would be frivilous and end up costing you a lot of money, and your broker may disaprove of the negative publicity that it can bring his/her office and may terminate you.

This is not what you wanted to hear, but in order to try and help you, I have to be perfectly honest and tell you what I'm seeing. I also realize that I may be completely in error.

However, I suggest that you take the advice of everyone who has told you to talk to your broker about the other transaction that involves earnest money, and get to studying these documents. Get a lot more education and you won't have to ask these questions.
Reply With Quote Quick reply to this message
 
Old 02-03-2008, 06:58 AM
 
27,206 posts, read 46,541,014 times
Reputation: 15661
Quote:
Originally Posted by TeamBenya View Post
I don't mean to be the voice of negativity here, so please don't take it that way. I don't know all of the details regarding you and your client, so this may not be applicable.

I do not recommend that you allow a client to have a contract so they can "sign it and give it back at their leisure". I'm not against letting people read over it at their leisure, but I'm a big fan of signing it with them rather than on their own. It serves two purposes. One, I don't waste my time prepping wasted paperwork. Two, I can ensure the the contract will not be held up my missed signatures, initials, etc. It's not a valid contract unless everything is signed, period. Anything prior to that is speculative, IMHO.

I also don't recommend verbally negotiating a contract. It runs into exactly the sort of issue you have. You spent lots of time and gained nothing. If it's not written down, it didn't exist, and it's important to remember that when dealing with real estate. It's never worth the lawsuit because "so and so said that you told them such and such". Have I verbally negotiated terms and detail before? We all have, but I don't do it if there has not been paperwork sent between all parties previously.

There's a gigantic risk I take by verbally negotiating, and it's a very easy way to cause buyers/sellers/agents to become unhappy. As a listing agent I tell other agents that if they're interested, write the offer and I'll submit it. What my client is "willing to take" is none of their business. It's also not my place to tell anyone that they may take less than the asking price. I would be doing a disservice to my client that way. On the flip side of that, I have no shame in asking a listing agent those same questions! I've actually been told by other agents that their client would take 100k less!

In regards to your rights as an agent, You should already know the answer to that one. It's you job as an agent to know and understand the contracts you write and that you have people sign. If you don't understand the paperwork you asked your client to sign, then you need to talk to your broke or office manager, and have them explain it to you.
Me as a buyer and a seller, I never sign anything under presure by a realtor. They can scan the contract and email it or fax it and will look over it a.s.a.p. and get back with any questions if I have. If I have a realtor putting presure on me, I would never work with this realtor.

In another thread you also entioned you worked for the seller and wanted it closed. The buyers agent didn't know how to get out and you knew how but didn't tell them because as you stated it wasn't you work to do so. But you stated you told them you would sue the other party if they didn't close on the house. That all sounds to me that the buyers had a good chance to sue you for misinformation and you might think you did a good job but i think you have put the sellers at risk to get sued so that isn't in their best interest, although the sold the home and are happy, but not for long if people are sueing them. This is probable similar to why a lot of people need lawyers to work out real estate contracts to get a honest answer.
Reply With Quote Quick reply to this message
 
Old 02-03-2008, 07:50 AM
 
250 posts, read 1,373,496 times
Reputation: 148
Quote:
Originally Posted by bentlebee View Post
Me as a buyer and a seller, I never sign anything under presure by a realtor. They can scan the contract and email it or fax it and will look over it a.s.a.p. and get back with any questions if I have. If I have a realtor putting presure on me, I would never work with this realtor.

In another thread you also entioned you worked for the seller and wanted it closed. The buyers agent didn't know how to get out and you knew how but didn't tell them because as you stated it wasn't you work to do so. But you stated you told them you would sue the other party if they didn't close on the house. That all sounds to me that the buyers had a good chance to sue you for misinformation and you might think you did a good job but i think you have put the sellers at risk to get sued so that isn't in their best interest, although the sold the home and are happy, but not for long if people are sueing them. This is probable similar to why a lot of people need lawyers to work out real estate contracts to get a honest answer.
I think you misunderstand what I'm saying here. If a client wants to take a blank copy of the contract home to read it, no problem. I'll strike it and send it out to them. I also have no problems delaying submission of a contract by postdating if my buyer wants a day or two to look it over. It's not about being a high pressure salesman. The fact is I'm not a high pressure salseman at all when it comes to my buyers, there's simply no need to be. What I was trying to convey was that I don't like the idea of filling out 40-50 pages of contract and then waiting to see if it comes back. I'll send out copies without a problem, but I don't like letting the original disappear. If my office were ever to be audited, they'd want to see contract originals, so I do my best to ensure that I have them.

In regards to the people that wanted out of a contract, your assessment of the situation is a bit inaccurate. I never threatened them with a lawsuit. I warned their agent that walking away had the potential to be more than just a loss of the deposit. I had to say that because he was unaware of the liability(However, none of that conversation happened until contingencies lapse).

In regards to them having an out through HOA disapproval, well, that's why there's supposed to have an agent, right? They didn't have an issue with the HOA, but it could have been a convenient excuse. I don't advocate manipulating technicalities (the reason they wanted out was cold feet, unless my client cut the price 20k) like that. I'm not going to tell someone elses client how to kill my clients deal by essentially lying.

I don't think that really puts me at risk of lawsuit. I didn't withhold information, they were being directly represented, the sellers were not at risk of lawsuit, they followed the contract exactly as stated through closing.

What I think would have put me at risk for lawsuit would have been telling the buyer that if they lied about not liking the HOA doc's they could get out of the contract. The seller may have been able to press a lawsuit against me at that point, I believe.
Reply With Quote Quick reply to this message
 
Old 02-03-2008, 08:30 AM
 
Location: Palm Coast, Fl
2,249 posts, read 8,872,458 times
Reputation: 1009
Can you even sue? In Florida an agent can't initiate a lawsuit, only the broker can. And they can't do it unless she's actually purchased something. What does your broker say about all of this? What makes you think the other agent can get her into a contract when you couldn't? Does the other agent even know that she's in a buyer's broker agreement with someone else? Frankly, I wouldn't want to work with someone who was ***** footing around and not following through on negotiations. It means either I'm not able to control the situation or the customer is a little 'special' so what would be the point? Either way, talk to your broker.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:


Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate > Real Estate Professionals
Similar Threads

All times are GMT -6.

© 2005-2024, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top