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I'm in the process of buying an REO (bank accepted offer, inspection done, option period ends 9/21/09, closing date in 2 weeks). A couple of issues have occurred during the transaction that had me questioning whether my agent was really looking out for my best interests (I can provide more details if necessary).
Yesterday, I was on the phone with her and I decided to address the issue so we could addres it (I thought that was the thing people do in a professional relationship). Let's my agent, "Cindy". I was not yelling at her or anything. I just said in my normal voice, "Cindy, I have to be honest, due to some actions that you have made I have begun to question whether you are really advocating for us regarding the closing date". She got very upset, told me that I hurt her feelings, and started screaming that she can't believe I said that and that she can't talk to me anymore. I was like, I am just trying to have a discussion with you about this because.... (still talking in my normal voice) and before I could continue she yelled out, I CAN NOT TALK TO YOU and hung up the phone.
Whoa...., I was surprised and then I got upset...However as I learned, you never write an email in anger so I took 30 minutes and then sent an email to her. This is what I said:
I am very appalled at your behavior today, and I find it unprofessional. I am shocked that you hung up the phone on me when I told you that I was concerned about the efforts you have made pertaining to advocating for us regarding the closing date. While I understand that this may be a stressful time, it is your responsibility to represent my best interests and hanging up on me was not in anyone’s best interest regarding this real estate transaction. Instead of us discussing ways to address my concerns, you cut off communication. I would appreciate a call from you. I will be in the office until 3:30pm. After that, you can reach me on my cell phone.
I was going to cc her broker (i actually met her broker once), but i was like let me give Cindy a chance to respond and apologize, because perhaps we can still work this out. Maybe she was having a bad day....
Then, I get a call from her broker (let's call the broker "Mary") and Mary said that Cindy sent her the email and that she is stepping in so that the deal doesn't fall apart. She wanted to know if I can sign an amendment and send it back. Well, I told her that is also part of the problem because Cindy never sent me the amendment (which I was going to tell her before she hung up on me). Then I told Mary what happened and told her some of the reasons why I was concerned about the way Cindy was handling the transaction (I actually forget to tell her the major reason when/why my faith in Cindy started to falter). The broker agreed with me that Cindy should not have hung up the phone on me and that she should have addressed my issues. Mary is actually in the process of working with the listing agent to do something that Cindy basically refused/gave up on doing (Mary said that she agrees with my reasons and believes that she could get what I wanted done; even if she doesn't get it done, at least I know that Mary actually tried).
Mary told me that I can still work with Cindy or I can work with her. I told Mary, let me think about it and that I will get back to her (I try not to make decisions in the heat of the moment if it can be avoided). I have decided that I do not want to work with Cindy. If Cindy had called me back, I would have considered it (my family say i am crazy to even consider working with her again). However, Cindy never called me back, so I believe she has made it clear that she no longer wants to work with me on getting this house.
So here is the question: If I work with the broker to buy the house (in all likelihood, this deal is going to go through), will Cindy get the commission?
I do believe that Cindy has worked hard for us in trying to get the deal closed (that is part of the problem, at times it seems as if she was looking out for the seller's interest and not mine), however I no longer feel that she deserves her full commission since she will not be completing the deal with me (to me, she fired herself). What can I do to make sure that she doesn't get the commission, or at least not the full commission? Should I write a letter to Mary detailing when Cindy has failed her fiduciary duties as formally request that Cindy does not receive her commission and that the broker maintains all/most of the commission? (I know that their may be some back channels for Mary to funnel to $$ Cindy).
Thank you for taking the time to read this.
Last edited by sweetrai; 09-19-2009 at 08:17 AM..
Reason: Some text was too small
The full commission is not Cindy's in the first place. Cindy works for Mary, the broker, commissions are only payable directly to the brokerage so in this case the full commission would be payable to Mary's brokerage (e.g. Remax, L&F, Horizon, Century 21, etc...). No agent leaves a closing with a commission check payable in their name, at least not in Maryland. Brokers have specific agreements with their agents, like Cindy, for how the broker's commission will be shared (between the broker and the acting agent). Basically, it's up to Mary how/if she wants to share part of the commission earned from your transaction with Cindy. Pretty much an internal call.
If you are comfortable working with Mary, run with it.
That you had an issue is a well recorded fact now.
Focus on your transaction.
They will handle the commission.
What they do with it is the firm's business.
Your agency agreement with Cindy likely says as much.
First, we do not know the whole story.
Second, it's not your money that is paying the commission. The agreement is between brokerages.
Third, you said you didn't discuss the most important issue with Mary.
Quit focusing on Cindy, focus on your transaction. Cindy is human, and when she worked hard for you but you accused her of not working in your best interest. You hurt her feelings. That is the worst thing a buyer can accuse their agent of.
Then you rubbed salt in her wound by telling her that you were appalled by her behavior. 30 minutes later you were still angry.
Banks don't care when they are the seller, even REO brokers have a hard time working for the bank.
It's up to Mary, the broker, as to whether or not or how much Cindy gets paid.
It could be that Mary will just handle this for Cindy and give Cindy her full commission split, she may give Cindy a referral fee, or maybe Cindy was/is on her way out of the brokerage and will not get anything....
What matters to you is that the deal gets closed and you become the new owner of the home. Whether Cindy gets paid is between her and her broker.
Not making excuses for Cindy, she sound fairly unprofessional but sometimes what we do to make the transaction work almost comes off to a buyer as sometimes protecting the seller. (which we're not)
It's hard to explain, but to keep the transaction moving forward we understand the seller needs to feel like they are not getting abused. Nothing like having an upset seller who then makes everything worse and then becomes difficult to negotiate with.
That may not be a good explanation & she may have been way out of line but sometime it may not look like it but we are trying to do best for our buyers. You've got to give a little to get a little.
I'd have a clear conversation with Mary and see if Cindy will still earn a portion of the commission for her time and involvement. Each firm has different rules on these matters.
Either way, your goal is to buy the home if all your bases and risks are covered, right? Focus on that and keep in mind agents are human. However, when we join the National Association of Realtors we do have a Ethical Code we have to abide by. The client is first, it is business, not personal. She was not following that mindset based on the few details you've given us.
If you are comfortable working with Mary, run with it.
That you had an issue is a well recorded fact now.
Focus on your transaction.
They will handle the commission.
What they do with it is the firm's business.
Your agency agreement with Cindy likely says as much.
I'm not sure if I signed an agency agreement, but I checked my contract and there is a broker information and ratification of fee form, and you are right on that the name is the broker agency and not an individual name.
First, we do not know the whole story.
Second, it's not your money that is paying the commission. The agreement is between brokerages.
Third, you said you didn't discuss the most important issue with Mary.
Quit focusing on Cindy, focus on your transaction. Cindy is human, and when she worked hard for you but you accused her of not working in your best interest. You hurt her feelings. That is the worst thing a buyer can accuse their agent of.
Then you rubbed salt in her wound by telling her that you were appalled by her behavior. 30 minutes later you were still angry.
Banks don't care when they are the seller, even REO brokers have a hard time working for the bank.
True, I guess on these forums no one will ever know both sides of the story...
Yes, I just told Mary about only one issue (the issue that I was talking to Cindy about when she got upset and hung up the phone). It wasnt until I was talking to my father that he asked me if I told Mary about the other issue, and I was like no...There was so much going on that I honestly forgot to tell Mary.
Cindy did work hard for me. I would never say that she didn't. However, circumstances happened in which she was definitely not looking out for my best interest (or at least that is the way it appeared to me). Maybe she was just trying to get the deal close, which I do appreciate, but do not do that if that means I will be put in a position that she knows I do not want to be in.
It was not my intention to hurt her feelings. I was just trying to tell her why I was concerned about some of the things she was telling me to do. If she did not hang up the phone with me, I would have told her in detail. My reasons were not based on emotions, I have specific circumstances that I could tell her. The very reason I wanted to discuss it was because this would give her the opportunity to give me some insight on why she was advising me the way she was. Otherwise, I would just continue to second-guess her and question her motives, and I didn't think that was in the best interest of our relationship.
I get that I hurt her feelings, but you know what? Talk to me like an adult, like a trained professional. Isn't that what adults do? If someone came to me and said, "You know, I'm not sure if you are truly advocating for my best interests". Would I be hurt if I knew that I thought that I was doing everything in my power to look out for them? Of course. But as a professional, the next thing I would have said is "Ok, I'm not sure why you feel like that. I have been doing everything in my power to look out for your best interests. But if you could explain to me why you feel like this, I am sure I will be able to address your concerns"...
Was I appalled by her behavior?! Heck yeah!!! So why shouldn't I tell her? I told her that in an email since I wasn't going to call her back. However, in the email I also told Cindy to call me. Once again, giving her an opportunity to discuss the issues. Did I bash her? No, I spoke specifically to her unprofessional action of hanging up the phone on her client whilst in the middle of a conversation.
I'd have a clear conversation with Mary and see if Cindy will still earn a portion of the commission for her time and involvement. Each firm has different rules on these matters.
Either way, your goal is to buy the home if all your bases and risks are covered, right? Focus on that and keep in mind agents are human. However, when we join the National Association of Realtors we do have a Ethical Code we have to abide by. The client is first, it is business, not personal. She was not following that mindset based on the few details you've given us.
Good luck and happy house hunting!
Yes, the goal is to buy the house. I am trying to stay focus on that. I do understand that agents are human. When I spoke to Mary, I told her to tell Mary that I did not mean to hurt her feelings. This is also why I didn't want to make a decision on whether I should continue to work with Mary or Cindy when Mary called. I wanted to give Cindy the chance to call me. I'm a very rational person. Perhaps, that is my downfall is that I am too analytical (I'm an engineer by training).
Thanks for the luck...Hopefully, the house hunting will be over.
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When I spoke to Mary, I told her to tell Mary that I did not mean to hurt her feelings. This is also why I didn't want to make a decision on whether I should continue to work with Mary or Cindy when Mary called. I wanted to give Cindy the chance to call me. I'm a very rational person. Perhaps, that is my downfall is that I am too analytical (I'm an engineer by training). 
