FSBO sells... then needs Broker (RE agent, documentation, fee, condo)

[Lester1970]

A neighbor thinks she has sold (thinks = to a non-qualified stranger with a weird story about coming into inheritance and wants to buy her condo) her condo after it has been on the market for umpteen hundred days with no bites (another whole story I won't get in to) They listed their homes with one of those take the money and run listing companies that provide no service other than listing their home on MLS for a flat fee, but still have them sign an agency agreement. (they are still thinking of themselves as an FSBO)

Now that they might have a chance to unload this house, they approached me to prepare paperwork for them and offered me 500 dollars.

I told them that I could not (would not) do that because they signed an agency agreement with this other firm. I do not know the points and requirements that they agreed to and therefore see my getting involved on their side as a possible code of ethics violation. However, I also went on to say that since their "buyer" was not working with an RE agent, she could call me and I could prepare documentation/offer to purchase, etc. on her behalf.

What does everyone think?

I am asking the masses. I tried to contact my BIC on this, but got nothing.

(p.s. sometimes the grass CAN be greener on the other side of the fence to the person who has contemplated changing firms, I think)

[missyM]

She should've listed with you in the 1st place, and now she wants your help and advice?
I'd work with the buyer on this or not at all. If you do any paperwork for the seller, w/no listing contract, you are practicing law w/out a license.

[Lester1970]

Missy,

Thanks! yes, my thoughts exactly as I really think they have taken advantage of the friendship I offered them all along... My partner told me that I needed to just wash my hands of the whole thing.

They are really ridiculous and followed the SOP for FSBO-ers:
1. Overpricing
2. Sitting on the market forever
3. Reducing pricing
4. Now getting major low-ball offers, hurting the value of the neighborhood...

Good times...

Thanks for your advice.

[olecapt]

Never turn down found money.

You can clear the present contract...the front end guys will generally do so on request of the sellers.

You can represent the buyer.

I would generally charge 1 1/2% for such an arrangement. And I might get bargained down to 1%. The supposition is that it is a clean deal and they are in agreement on price.

I don't know your local laws, rules and practices. But here it would be four or six hours work. The hourly rate ain't bad. And I would likely pick up one or two new entries for the sphere of influence.

[palmcoasting]

I don't know what the laws are in your state but here in Florida, assisting someone to fill out and complete a pre-designed contract and accompanying addendums is NOT practing law.
That said, did you look at the papers they signed with the other company? I think if it's a flat fee just list you up kind of company they've been paid for the 'work' they agreed to do and now the seller is free to do what they would like to...but that would be stated in the paperwork they signed with them.