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There is something which bothers me about some of the responses on this thread. Let's assume it was a matter of a sub-agency deal because the OP did not sign the agreement. However, the agent still showed less than ethical behavior by not explaining this situation clearly to the OP. Do you genuinely think the OP would have given this private information to the agent if the OP knew for a fact the agent was acting as a sub-agent since no buyer's agreement was signed?
I think many of you are parsing in an effort to not say this agent was wrong. The OP wasn't asking if he or she could sue this agent or turn the agent in for a violation to the board. He/she was asking if a new agent was advisable.
In my opinion, I think the OP should obtain a new agent for the following reasons:
1. If a sub-agency did exist by not signing a buyer's agreement, then the agent was unethical in not clearly disclosing the fiduciary responsibility which existed once an offer was made without said signed agreement.
2. If sub-agency did not exist, it was unethical to disclose private information to the selling agent putting the OP at a disadvantage in negotiations.
Either way, get rid of the agent and find someone who will clearly and legally work for you OP. If you want the house still, you can tell the agent you want to sign a buyer's agreement for this house only and then proceed to tell the agent exactly how much you want to pay. If it doesn't work out, it doesn't, and move on from both the house and the agent. If you do get the house, your agent gets paid for this house only but I would not recommend this agent to anyone else.
There is something which bothers me about some of the responses on this thread. Let's assume it was a matter of a sub-agency deal because the OP did not sign the agreement. However, the agent still showed less than ethical behavior by not explaining this situation clearly to the OP. Do you genuinely think the OP would have given this private information to the agent if the OP knew for a fact the agent was acting as a sub-agent since no buyer's agreement was signed?
I think many of you are parsing in an effort to not say this agent was wrong. The OP wasn't asking if he or she could sue this agent or turn the agent in for a violation to the board. He/she was asking if a new agent was advisable.
In my opinion, I think the OP should obtain a new agent for the following reasons:
1. If a sub-agency did exist by not signing a buyer's agreement, then the agent was unethical in not clearly disclosing the fiduciary responsibility which existed once an offer was made without said signed agreement.
2. If sub-agency did not exist, it was unethical to disclose private information to the selling agent putting the OP at a disadvantage in negotiations.
Either way, get rid of the agent and find someone who will clearly and legally work for you OP. If you want the house still, you can tell the agent you want to sign a buyer's agreement for this house only and then proceed to tell the agent exactly how much you want to pay. If it doesn't work out, it doesn't, and move on from both the house and the agent. If you do get the house, your agent gets paid for this house only but I would not recommend this agent to anyone else.
I don't think enough background on the proceedings has been presented to fault the agent, or the OP.
Actually, as agents, we see routinely where we HAVE explained things, repeated things, and the consumer misses points. They have a lot going through their minds during these conversations.
Was that the case here? No idea, but it certainly happens even under the best intentions. The OP does seem to have caught onto the terms of agency with a minimal 90 day engagement. Was the OP focused on that and missed other discussion?
Last edited by MikeJaquish; 05-07-2015 at 11:15 AM..
Nor am I a Realtor, but I've seen this many times over. Those that are saying "off with her head" need to understand, in some (many) states, since the seller pays both agents' commissions, both agents have a fiduciary responsibility to the seller to disclose everything they know about the offer being presented, including the buyer's maximum price (unless the agent has a buyer's agent contract, which is presented with the offer). I assume since the agent tried to get the buyer to sign a buyer's agent agreement, so it was clear the agent represented the buyer, the agent attempted to explain the situation to her. (Why else bring out the agreement)? It's likely all the OP saw was an agent handing her an agreement to represent her that was locking her in to use only that agent, not understanding that if she didn't sign, the agent worked for the seller.
There is every possibility the agent that wrote the buyer's offer was correct in her actions and was ethically correct in her actions. Everyone saying dump her needs to understand her actions could have been by the book.
I would love to see you post the link to a legal doc stating that an agent may disclose confidential information. Because I am pretty sure one of the few actual legally binding rules is client confidentiality.
Agents must disclose relevant data, but not how much a client can spend, that is just nonsense.
The rest of the fiduciary responsibilities tend not to worth much at all as the 'best interests" etc are very hard to prove and there is virtually no sanction when RE agents break those rules
Here in Texas we have to have a form to allow us to release confidential information. The fiduciary duty is paramount (as it should be), and confidentiality is certainly a component of fiduciary duty.
I'm not a Realtor, but maybe one could answer a question for me: How the heck was an offer made and no buyer/agent contract signed?
I've purchased many houses since my first one in 1976. I have never had to sign a buyer/agent contract, nor was I ever asked to do so. Maybe this is just a California thing.
You want to be careful to NOT offend the seller. Some sellers, once they are offended, act unreasonable. Then the deal doesn't come to fruition.
The end goal is to get the home for the price the buyer wants to pay. But do this as careful as possible and not ruffle feathers as you get there. Or you might not get there BECAUSE of the ruffled feathers.
That's why I suggested raising the price $500 from first offer. This way it is at least moving upward and, in the sellers eyes, is going in the direction that favors them. However, I said to increase by $500 BEFORE it was disclosed the the roof is 20 years old.
At this point I would estimate the cost of a new roof and reduce the price accordingly. UNLESS it's a high end metal roof because they can easily last 50 years. If it's a roofing material other than asphalt, then the roof life span needs to be evaluated. Such as tile/slate/metal/concrete
If in sub-agency, here in NC, the agent would be required by law to tell the seller whatever they knew. There would be no confidentiality for the buyer.
That exactly what I figured ~ no contract with buyer means working for the seller!
I'm curious how many states do still allow subagency.
Maryland does. That's what I assumed could have happened when the OP posted this. Everyone is throwing around "fiduciary" duty but that is reserved for clients. OP declined to be a client and therefore that made the agent a subagent of the seller. And therefore their loyalty was to the seller. It is a slippery ethical slope, no doubt. There are so many disclosures, forms, ect and even though I go through my agency spiel, I can imagine lots of people would just assume representation based on the circumstances. I wouldn't write an offer without a buyer representation agreement for this very reason.
OK so thanks for all of the responses so far...this may sound like a dumb question but how do I go about finding a 'good' real estate agent. Am I supposed to interview them like a job application process? Is there somewhere online with ratings or should I just called the major realtors and speak with someone in their offices?
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