Listing agent holding out offers so he can get double commission (contingencies, 2013)

[Brandon Hoffman]

Originally Posted by yynawt1

Thanks everyone. Unfortunately our agent does not want to ruffle his feathers by demanding a signed receipt of the offer. ... So, if we somehow lose out on this property, then we know the listing agent is a crook (which I have heard from other agents, this guy is not very ethical, obviously). Still, if we do not get the deal, then are there ways to file a grievance, complaint or lawsuit against the listing agent?

I'd dang sure get a new agent then because yours sucks from the sound of it...but you may have an issue with procurring cause so tell your new agent the situation.

I'd recommend informing the listing agent of your intent if you don't get the home.

[middle-aged mom]

I DK how things work in Cali. In my neck of the woods the initial offer on a relocation company assisted listing has to include the buyer's executiuon of some preliminary addendums.

Relocation companies pay a percentage of the closed price as commission, not a flat fee. The listing agent usually has to pay a referral fee to their broker for the relo listing, upon closing.

Certainly sounds like the listing agent is ignoring other offers in favor of dual agency. Is there any reason why you or either one of your agents has not accelerated this within the listing agent's brokerage and local real estate board?

Just curious, do either of your agents know that you are using 2 agents to make an offer?

[LisainCali]

I feel pretty sure that the seller doesn't have to give you a rejection letter whether or not you demand one. They can if they want to, of course.

You said that a relo company is involved. Relo companies work for the Employer and, by extention, to the employee because they make the sale of the employees existing home and purchase of the new home work for the employee. I'm not clear from your post if they are representing the buyer or the seller.

If it is the seller, the relo company tells them who to list with and for how much. The seller must run every offer by the relo company (employer) and get approval before accepting any offer. The employer can, and often will, work financial magic to make things work for an important employee wherever they want him to be.

If it's the buyer, the relo company can make any deal work and it is a GUARANTEED PURCHASE to the seller and a 1 day close of escrow if that is what it takes. I had a relo company wire 50% of the purchase price into escrow for a buyer of mine because he didn't even remotely qualify for a higher loan on the home he selected.

If the relo company is involved in relocating the seller, the home will likely be back on the market shortly. If they are working with the buyer, the game for you is likely over. Move on.

And just as an aside and a personal opinion, it is not in your best interest, nor is it in my or my future clients' best interest, to get into a pissing contest with other agents over a "feeling" that an agent has been unethical.

I have a feeling that is why Agent #1 referred you to someone else. Stomping around, demanding rejection letters, threatening lawsuits, and filing complaints the local Board will only come back to bite you if the relo company is the new owner, re-lists with the same agent (which would be likely) and have labeled you a troublemaker.

Edited to add: You don't now know, nor will you likely EVER know what the relocation company has worked out with the employer regarding this employee. The home probably IS sold, but not yet signed by the seller. The relo company has probably given the terms to the agent, or might be the actual Buyer. The good news for you is that the home might be back on the market shortly if, in fact, the relo company has bought the house. And you could become the buyer if you play nice.

And why on earth aren't either of your agents telling you this information?

[Rakin]

There is an old saying "You can't do business with a crook".

I believe we are only hearing one side of a story but if what OP is saying is accurate, it sounds like you have run into a crook. Personally, I'd like to hear both sides of this story.

[Lacerta]

Originally Posted by LisainCali

I feel pretty sure that the seller doesn't have to give you a rejection letter whether or not you demand one. They can if they want to, of course.

I agree that they don't have to. But for an agent and seller who have an existing business relationship, if the agent had done his job correctly and presented all offers, it shouldn't be a problem to go to the seller and say "Hey Joe, remember that offer that we rejected? Well the crazy buyer is threatening to take me in front of the board because he thinks I didn't show you the offer. Could you write 'rejected' across the first page and sign your name for me so I can make him go away?". A normal agent and a normal seller are going to think the buyer is nuts, but since that doesn't cost them anything other than a few minutes time, they are going to comply.

Therefore, the fact that they aren't willing to do this, coupled with the rest of their responses, is somewhat suspicious.

However, you can't make them sell the house to you. As long as they chose the other offer for ANY reason that is not a violation of a contract or any discrimination of a protected class, they can pick the offer they want. So if both offers met the terms agreed upon by the sellers representation agreement, and they have a reason they picked that offer over yours (which could be as simple as that they like that neighbor and wanted to sell the house to them...it could also be that they like their agent and would like to see him get paid more, rather than giving the commission to an agent they don't know), then you have no real case, other than ethical. So you could probably get the agent in trouble for lying (if you could PROVE it), but you couldn't make them sell you the house.

Now, I will say that I'm not sure how the deals work with Relo companies, since I am not an agent, and agents in my office haven't told me anything about their experiences here, so if the representation agreement is with the RELO company, then the agent isn't acting in their best interest, and you may be able to get them in more trouble, but if they represent the owner of the house, which I assume they do, then the only thing they have done that is unethical is to lie to you. You can't prove that they didn't present your offer, and you probably can't prove in court that they lied, since it would be a "he said, she said" thing.

You can report them if you want for unethical practices, but proving anything is your problem.

[TheEconomist]

Sounds like you lost the house. Now, do everything in your power to have this person's realtor license revoked.

[LisainCali]

Originally Posted by Lacerta

Now, I will say that I'm not sure how the deals work with Relo companies, since I am not an agent, and agents in my office haven't told me anything about their experiences here, so if the representation agreement is with the RELO company, then the agent isn't acting in their best interest, and you may be able to get them in more trouble, but if they represent the owner of the house, which I assume they do, then the only thing they have done that is unethical is to lie to you.

Look, if the agent is unprofessional in dealing with a relo company then she must be mentally ill. Any of us would kill to be the designated listing/selling agent for Allergan, Fed-Ex, Tribune, the LA Lakers, etc. These days, relocation packages are not offered to upper-middle management very often, if at all.

Before the OP starts calling the relo company or DRE to complain about the agent, he better be darned sure he knows what he is talking about.

OP, call a real estate attorney, pay the $250-$500/hour for his time and find out if you have a case. Because if the relo company drops the agent based on what you think might be going on, and make the accusations of lying, fraud and illegal and unethical activities, you might just find yourself on the wrong end of a defamation complaint.

Just be careful and spend your time and money wisely.

[Lacerta]

I received a very upset PM basically telling me I shouldn't advise the OP to sue, so for the record, in case anyone else misunderstood my post, my advice all along has been to let it go, since you have no proof of anything at all, and no first hand knowledge that anything other than some possible lying took place.

You don't even know for sure there was lying, since it is possible that phone conversation had taken place and the seller said "Yes, I'll take that deal, I like that neighbor and would love to sell them the house, turn everyone else down". Just because they haven't signed yet, which is what you were told in other conversations, doesn't mean that the other wasn't true as well. The OP has no proof of anything, and should just move on.

Maybe it was my last sentence in the last post that was misleading...I amend it to say "You could TRY to report them if you want for POSSIBLE unethical practices, but proving anything is your problem". Is that better? My point is "no proof, no case".

[jdm2008]

Originally Posted by LisainCali

OP, call a real estate attorney, pay the $250-$500/hour for his time and find out if you have a case. Because if the relo company drops the agent based on what you think might be going on, and make the accusations of lying, fraud and illegal and unethical activities, you might just find yourself on the wrong end of a defamation complaint.

The truth is an absolute defense to a defamation suit. As long as the OP sticks to the facts he has not comitted any defmation. Can the OP be sued yes, he can just like he can be sued for doing anything at any time.

[lawmom]

The bottom line is that no one here can give adequate advice since we don't know all of the facts.