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I started working with an agent a few months ago. I live in North Carolina. During that time, she showed me one house. I was driving through a new development, and met the realtor on site. He told me about 4 spec homes that were being built. I emailed the information to my realtor, but she said they were out of my price range. (They were not). I contacted the builder myself regarding lot choices and pricing. We later met at the model house to look at blue prints.
My realtor had not been involved up to this point. I invited her to the meeting to see if she could be of any help in negotiating a better price. She did not say a word at the meeting, I asked all the questions. The builder said the price of the house was not negotiable. I am currently in the process of choosing finishes before I sign a contract. I do not need my realtor to be involved in this purchase. I will have my attorney look over the contract.
I did not sign a buyer’s agreement with her. If she had shown me several houses, or brought me to this community, I would feel she deserves a commission. But she has done nothing for me. I understand the seller pays her commission, but my question is, am I legally obligated to include her in the deal?
I started working with an agent a few months ago. I live in North Carolina. During that time, she showed me one house. I was driving through a new development, and met the realtor on site. He told me about 4 spec homes that were being built. I emailed the information to my realtor, but she said they were out of my price range. (They were not). I contacted the builder myself regarding lot choices and pricing. We later met at the model house to look at blue prints.
My realtor had not been involved up to this point. I invited her to the meeting to see if she could be of any help in negotiating a better price. She did not say a word at the meeting, I asked all the questions. The builder said the price of the house was not negotiable. I am currently in the process of choosing finishes before I sign a contract. I do not need my realtor to be involved in this purchase. I will have my attorney look over the contract. I did not sign a buyer’s agreement with her. If she had shown me several houses, or brought me to this community, I would feel she deserves a commission. But she has done nothing for me. I understand the seller pays her commission, but my question is, am I legally obligated to include her in the deal?
Well, honestly, it is not uncommon for a builder to stand pat on pricing, allowing only the current offered promotions. Particularly true on presales. Spec homes that are complete and sitting often give a buyer a bit more leverage on pricing.
I am sure (well, hopeful) that both the builder's sales rep and the agent each reviewed Working With Real Estate Agents with you and each provided a copy to you.
It comes in various formats: https://www.ncrec.gov/Brochures/Work...sLegalSize.pdf http://www.ncrec.gov/Brochures/Print/WorkingWith.pdf "Buyer’s Agent Duties to Buyer: If the real estate firm and its agents represent you, they must • promote your best interests • be loyal to you • follow your lawful instructions • provide you with all material facts that could influence your decisions •use reasonable skill, care and diligence, and • account for all monies they handle for you. Once you have agreed (either orally or in writing) for the firm and its agents to be your buyer’s agent, they may not give any confidential information about you to sellers or their agents without your permission so long as they represent you. But until you make this agreement with your buyer’s agent, you should avoid telling the agent anything you would not want a seller to know. Unwritten Agreements: To make sure that you and the real estate firm have a clear understanding of what your relationship will be and what the firm will do for you, you may want to have a written agreement. However, some firms may be willing to represent and assist you for a time as a buyer’s agent without a written agreement. But if you decide to make an offer to purchase a particular property, the agent must obtain a written agency agreement before writing the offer.
If you do not sign it, the agent can no longer represent and assist you and is no longer required to keep information about you confidential."
I invited her to the meeting to see if she could be of any help in negotiating a better price. She did not say a word at the meeting, I asked all the questions.
Based on your description of events here, you didn't hire her. She was not working for you. She could not negotiate for you against the builder's interests.
Read on.
I did not sign a buyer’s agreement with her.
Based on your description of events here, you don't have a buyer's agent. She cannot write an offer representing you as a fiduciary, or represent herself to others as your buyer's agent without a signed buyers agency agreement.
If she claims to be your buyer's agent in negotiation with the builder, you have grounds for a complaint.
The builder rep may choose to pay her as a sub-agent, but in that case, she is working only for the builder, and you should share absolutely no more personal information with her.
am I legally obligated to include her in the deal?
Based on your description of events here, I believe you have no legal obligation to her at all.
Since you post this as a legal question, and you have an attorney, I suggest you get your attorney's counsel on the topic.
Last edited by MikeJaquish; 09-06-2020 at 06:16 AM..
Not your question, but you should know that it's not likely the person in the office was a Realtor or an agent. They are a sales person unless requirements are different in NC than many places.
Not your question, but you should know that it's not likely the person in the office was a Realtor or an agent. They are a sales person unless requirements are different in NC than many places.
Nearly all NC builders use licensees. Liability management. Every now and then you find one who isn't licensed. Sometimes licensed but on the shelf.
When the builder is on MLS, unless using a cheap listing service, someone has to be a REALTOR in a REALTOR-owned MLS. So, the disclaimer is still required, if the builder is smart.
Reading below, I am sure the builder and agents would have had to do the WWREA review and provide a copy.
Last edited by MikeJaquish; 09-06-2020 at 07:57 AM..
I have been in contact with the builder regarding my options. I will be able to handle this on my own. I am not sure what your role will be in this transaction. We will have to talk about it further.
And her response:
I am sorry I didn't respond sooner. I would love to see this through with you, be someone you can bounce ideas off of, and you could use some of my commission in negotiate. It's up to you, of course.
The development has a licensed realtor on site. They will be entitled to a 3% commission. I am working with the builder’s son, who is the CFO of the company, on finish selections and pricing. He is also a licensed realtor.
He could take the other 3% commission, and give me back 2% at closing. I recently bought and sold three houses, and each time I was credited back 1% of the commission at closing. I understand he is working for the builder.
I have been in contact with the builder regarding my options. I will be able to handle this on my own. I am not sure what your role will be in this transaction. We will have to talk about it further.
And her response:
I am sorry I didn't respond sooner. I would love to see this through with you, be someone you can bounce ideas off of, and you could use some of my commission in negotiate. It's up to you, of course.
The development has a licensed realtor on site. They will be entitled to a 3% commission. I am working with the builder’s son, who is the CFO of the company, on finish selections and pricing. He is also a licensed realtor.
He could take the other 3% commission, and give me back 2% at closing. I recently bought and sold three houses, and each time I was credited back 1% of the commission at closing. I understand he is working for the builder.
Please note i am not licensed in your state and my opinion is that of my own and do not constitute any legal advice. For legal advice you should talk to licensed lawyer in your state.
I told my RE which new builds I wanted to look at. Most were not price negotiable.
I would say that you don't "owe" her anything, but why did you invite her along? That's implied imo. Besides, the builder pays her, you don't.
Seems like it's almost personal to you at this point? Your realtor doesn't seem to care much, admittedly, but you did invite her along. Why would you give the builder and the developer commission?
For my new build purchase, the realtor was along for the ride, but I still agreed to use her. I just feel that's the right thing to do. She didn't get me a great deal, but on new builds, there's not a lot of negotiating room. No buyer contract, I just believe in doing the right thing.
Last edited by Gaylord_Focker; 09-17-2020 at 03:26 PM..
Thank you for advice, but it’s a moot point now. The house that was designed for that lot is too big and doesn’t fit on the lot. So I decided not to build.
I am going to take a break and resume my search in January. Right now we are in a sellers market with houses going into bidding wars. I think more people will list in January which will help the market settle down. I am enjoying living in a large apartment with no responsibilities.
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