2% back from broker promised, not getting it (new house, construction)

[hounewhome1]

We're under contract and building a new house and we chose a broker who agreed to give 2% back after closing. My good friend also bought a house using the same broker and closed a couple months back and he introduced us to the broker.

The problem is that this broker is now delaying and not giving the money to my friend (..and I'm NEXT). At my friends closing he said, he would give it an hour after the commission check is encashed but it's been 2 months.

I haven't closed yet since our house is under construction, but do we have any recourse of getting the 2% back. From reading other threads, I don't think it's illegal to get 2% back so lets not go there. Infact, there are advertisements in papers about 2% back.

We have no written contract and this broker; only phone calls and personal meetings. what are my options etc?

Thanks y'all.

[HoustonRonnie]

Originally Posted by hounewhome1

We're under contract and building a new house and we chose a broker who agreed to give 2% back after closing. My good friend also bought a house using the same broker and closed a couple months back and he introduced us to the broker.

The problem is that this broker is now delaying and not giving the money to my friend (..and I'm NEXT). At my friends closing he said, he would give it an hour after the commission check is encashed but it's been 2 months.
I haven't closed yet since our house is under construction, but do we have any recourse of getting the 2% back. From reading other threads, I don't think it's ilegal to get 2% back so lets not go there. Infact, there are advertisements in papers about 2% back.

We have no written contract and this broker; only phone calls and personal meetings. what are my options etc? As a last resort, you could go punch him in the nose or TP his house.

Thanks y'all.

Slim and none. Should have held out for something on paper. You can hire a lawyer, but it's a "he said she said" claim.

Good luck,

Ronnie

[RCH99]

Originally Posted by hounewhome1

We have no written contract and this broker; only phone calls and personal meetings. what are my options etc?

I'd say that's your problem right there. ^

[HoustonRonnie]

You could go punch him in the nose or TP his house.

Ronnie

[hounewhome1]

Is recorded evidence accepted in court. I can call him up and record the conversation which will imply the verbal agreement.

[City Love]

Originally Posted by hounewhome1

We're under contract and building a new house and we chose a broker who agreed to give 2% back after closing. My good friend also bought a house using the same broker and closed a couple months back and he introduced us to the broker.

The problem is that this broker is now delaying and not giving the money to my friend (..and I'm NEXT). At my friends closing he said, he would give it an hour after the commission check is encashed but it's been 2 months.

I haven't closed yet since our house is under construction, but do we have any recourse of getting the 2% back. From reading other threads, I don't think it's illegal to get 2% back so lets not go there. Infact, there are advertisements in papers about 2% back.

We have no written contract and this broker; only phone calls and personal meetings. what are my options etc?

Thanks y'all.

It's entirely legal to give a rebate back to the principal involved, that being you. So don't worry about that.

You do have recourse, but it's best to have proof. But since your friend is also in the same boat, you could both file a complaint against him with TREC. Threaten to file a complaint and see if that doesn't help. It should do the trick though.

Does your friend have any emails or proof regarding the 2% rebate. How did he find out about it?

[westres1]

If a realtor promises you 2% back at closing they will not be making any money to justify the work involved. The agent gets 3% then pays up to half back to their broker giving them 1.5% of the sale. After paying monthly brokrage fees and gas prices I dont see how anyone could afford to make this arrangement. I guess they could give you 2% of their 1.5% but why even work for that unless its a million dollar home.

[Oildog]

Are you sure it wasn't rolled into closing costs or improvements?

[CSD610]

Originally Posted by hounewhome1

Is recorded evidence accepted in court. I can call him up and record the conversation which will imply the verbal agreement.

Recording is legal IF you tell the person you are having a conversation with that they are being recorded if you plan to use it in court as evidence.

[hounewhome1]

Originally Posted by westres1

If a realtor promises you 2% back at closing they will not be making any money to justify the work involved. The agent gets 3% then pays up to half back to their broker giving them 1.5% of the sale. After paying monthly brokrage fees and gas prices I dont see how anyone could afford to make this arrangement. I guess they could give you 2% of their 1.5% but why even work for that unless its a million dollar home.

There was no work involved. My friend and I both finalized everything on our own and called the broker in. He gets 1% + any taxes that he has to pay; we get the rest. The broker would have made 3K after giving my friend back and paying IRS. So, he would have got paid 3K for driving 20 miles an signing a few papers. But not he doesn't want 3K anymore, he wants 14K. Add my 12K that too that he won't give me.