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I was generally working with a buyer's agent, trying to find a home abuot 4-5 months ago. I searched the MLS listings for homes that I liked, sent the list to him, and asked him to set up the appointments. I was interested in a particular house, he set up the appointment, we saw the house, I placed an offer, and it was rejected. The house went into contract with another buyer.
Months later, I stopped using the buyer's agent because since the market was so bad, he chose to put his R.E. career on the back burner and sell bulk electricity instead. I stopped using him because I tried to contact him several times and was unsuccessful for 2-3 weeks. At this point I decided I would just search the MLS and contact sellers agents myself.
As it turns out, that particular house was back on the market with a different listing agent because the original agent's contract expired, and the potential buyer was unable to secure funding. I submitted an offer directly to the new listing agent and it was accepted, and I am now in contract to buy the house.
A few days ago, I found out that my original buyer's agent, who blew me off for his electricity business, found out that I am buying the same house through the selling agent. Could I be in trouble? I never signed any papers with the original agent who blew me off, and since I am the buyer I was never supposed to pay him any commission anyway. Am I at fault? If this guy wasn't answering my calls and ignoring me, is it my fault for going around him and making an offer directly to the selling agent? I really like the house, and would hope that this wouldn't cause trouble, but I have a feeling that it may...
It's all about procurring cause. If your previous agent can show procuring cause that you're only buying the house because of the effort he put forth with introducing you to the house, then he has a case. There is always a case for procuring cause in every transaction.
However, if things went forward and he tried to get commission from you, you just need to be honest and tell your side. I hope you have kept email corespondence showing you tried to get in touch with him and that he was in the electricity business. It doesn't matter if you have a buyers' rep agreement signed or not. It's easier with one, but he doens't need a signed one from you to make his case.
My personal thought, you just ask the listing agent to throw your previous agent a small 15-20% referral fee since they're going to be double-ending the commission anyway and that would help make him go away.
Thanks for the quick reply! If that is how it works, he did absolutely nothing to introduce me to the house. I found it on MLS, all he did was pick up the keys and open the door. He didnt' even walk around the house with me, I walked it over myself and did all the research on violations, liens, short/regular sale, etc. If things are that bad for him that he has to sell electricity on the side, I doubt he has enough $$ to pay a lawyer anyway!
Procuring cause has to be an unbroken chain of events that lead to the successful sale of the home. Now...if you hadn't tried to contact him, then he would have a better shot at the procuring cause issue. The minute he failed to return your emails, at least to me, he abandoned you as a client and broke the chain.
Keep the emails you sent as proof that you tried to contact him. Move forward with your home purchase. This is an issue between the listing agent and him now.
Thanks for the quick reply! If that is how it works, he did absolutely nothing to introduce me to the house. I found it on MLS, all he did was pick up the keys and open the door. He didnt' even walk around the house with me, I walked it over myself and did all the research on violations, liens, short/regular sale, etc. If things are that bad for him that he has to sell electricity on the side, I doubt he has enough $$ to pay a lawyer anyway!
You say that you submitted an offer on the house that was rejected. So it would seem that he did more than just open the door.
It's not your fault, but that's something that will be considered if he should make an issue, through the local board, for procurring cause. As is the fact that you tried unsuccessfully to contact him for some time - as said earlier, it would be best if you have those emails to provide to the listing agent if this should become an issue (which it may not).
Relax, Mookie, you have nothing to fear. If you didn't sign a contract with your former agent, you are in the clear.
Unless you are contractually obligated to pay a commission to an agent, procuring cause is a dispute between agents. In other words, the listing agent may find that she has to pay over a commission to your former agent, but you won't. Hope that helps.
Procurring cause, is a problem and is sometimes decided on, by the local board, not necessarily the agents. The fact you tried to reach the agent, and did not return calls, is enough to plainly say, you could have had the deal, but blew it, so move on and dont worry. Smart move, no one to blame but himself. Cell phones, msgs, and emails, sorry, move on with clear conscience. Good luck, and keep us posted.
You should feel fine mookie, you didn't do anything but hopefully buy a house!! Good Luck to you on that transaction : )
Your agent was not very smart for not keeping up with the status of the house you wanted and staying in touch with you. Too bad he screwed himself out of a commission......
If you signed nothing with that agent you are fine. Just because he is mad doesn't mean you owe him anything. You can demonstrate he was not interested in helping you. The offer you submitted thru him was rejected - end of relationship.
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