Buying or Selling a Home/Right to represnt

Advertisement

Expert: - 11/17/2008


Question
We bought our first house 7 years ago in a very different market.  Our agent worked vary hard for and we were very happy with our representation.  Now we are looking to change houses and are trying to put together a much more complicated deal. We found the property we wanted and called our former realtor to get a showing.  She showed us the property which has been foreclosed upon, but has not been able to answer any of our questions regarding the property such as whether it is in redemption or not.  We have not signed any sort of representation agreement with her but were told by another realtor that since she showed us the property, by the Realtor Code of Ethics she will get the commission so we are stuck with her.  Is there anything we can do?

Answer
Hello Salli - There may actually be a mis-understanding applied here. First of all, if you did not sign an 'Exclusive' buyer broker agreement with her to represent you on the new acquisition then you are under no obligation to work with her. Second,"since she showed us the property, by the Realtor Code of Ethics she will get the commission so we are stuck with her" is incorrect. This does not apply to the Code of Ethics. This does however apply under the terms of "Procuring Cause". Black's Law Dictionary, Fifth Edition, defines procuring case as: The proximate cause; the cause originating a series of events which, without break in their continuity, result in the accomplishment of the prime object. The inducing cause; the direct or proximate cause. Substantially synonymous with "efficient cause." Therefore the agent who showed you the property may indeed be the procuring cause and therefore would be entitled to compensation if it were determined this agent was the procuring cause. I recommend talking to your agents Designated Realtor/Broker. If you feel this agent lacks the experience or competence to assist you in your purchase endeavor the D.R./D.B. would be the person you should discuss your dissatisfaction with. This individual is the responsible party for the supervision, training and acumen of your agent. Usually, this individual will either assign another agent in the firm, handle it themselves, or 'unconditionally' release you from any financial responsibility with their firm, releasing you to hire another agent of your choice. If you hire a different agent to represent you 'before' you receive this release you should be aware that if the first agent is determined as the procuring cause you may be required to compensate the second. Article 11 of The NAR Code of Ethics does establish an agents competence in their field which in your case may provide support when communicating to the DB/DR substantiating your position. You can google it online to read the complete article. If you feel the agent is unqualified or 'not looking out for your best interest' (Code of Ethics Article 1) then your priority is to talk to the D.R/D.B. of the office. Their information should be available online, or from the agency that governs the real estate licensees, or just call the receptionist and ask who the Designated Broker/REALTOR is. I hope this has assisted you. Please remember I am not an attorney and this is not to be considered legal advice, rather it is to be considered real estate advice any professional REALTOR should be able to provide. Let me know if I can be of further assistance. - Todd Menard

Buying or Selling a Home

All Answers

Answers by Expert:

Ask Experts

Volunteer

Todd C. Menard

Expertise

National Association of Realtors Code of Ethics and Professional Standards * Contract Questions: 05/05 Arizona Real Estate Purchase Contract, Exclusive Buyer Broker Contracts, Listing Contracts and associated contract documentation as it relates to boilerplate, covenants, contingencies, procedures and procedures. * ARMLS Arizona Regional Multiple Listing questions * Real Estate Professional Standards and Practices, Ethics, Obligations, Duties * Agency relationships in Arizona, Procurring Cause * Questions typicaly arising during the listing period * Questions typically arising during the escrow period * Questions about working with a real estate agent/REALTOR * Questions Related to New Home Builders

Experience

National Association of REALTORS Board of Director (2011) Arizona Real Estate Salesperson License (1991-1995), Arizona Real Estate Brokers License (1995-Present), Arizona Association of REALTORS Board of Directors (2008-Present), Arizona Association of REALTORS Professional Standards Committee (2008-Present), AAR Certified NAR Code of Ethics and Professional Standards Instructor, Southeast Valley Regional Association of REALTORS President-Elect (2011) Southeast Valley Regional Association of REALTORS Board of Directors (2008, 2009), Southeast Valley Regional Association of REALTORS Grievance Committee Chairperson (1998-2007), Southeast Valley Regional Association of REALTORS Bylaws Committee (2008-Present), Southeast Valley Regional Association of REALTORS Education Committee (2008), Arizona Association of REALTORS Forms Committee - Residential Purchase Contract (2005), Arizona Association of REALTORS Forms Committee - Residential Rental Agreement (2008), Arizona Association of REALTORS Forms Committee - Buyer Broker Agreement (2009), Arizona Association of REALTORS Presidents Advisory Group, Road to Professionalism (2009), Arizona Association of REALTORS GRI Curriculum Review Committee (2009), Arizona Department of Real Estate, Commissioner's Education Advisory Group Sub-Panel B (2010) Arizona Department of Real Estate, Commissioner's Statute and License Review Committee (2007)

Organizations
National Association of REALTORS, Arizona Association of REALTORS, Arizona Real Estate Educators Association (AZREEA), Arizona Regional Multiple Listing System (ARMLS), American Notary Association, Southeast Valley Regional Association of REALTORS (SEVRAR), Southeast Valley Regional Association of REALTORS Women's Council of REALTORS (2010-Present), Phoenix Association of REALTORS (1994-2000, 2005-2009), Scottsdale Association of REALTORS (1994-2000, 2005-2009), Maricopa/Glendale Association of REALTORS (1994-2000, 2005-2009),

Publications
"Real Estate in 2008"- Lifebushido Publishing (Contributory Author), SEVRAR Magazine, Internet Crusade, RealTown ListServe, Blogger.com, Active Rain

Education/Credentials
- AAR Certified Ethics and Professional Standards Instructor, Graduate REALTOR Institute (1993), Certified Negotiation Expert (CNE), Over 100 Hours of annual real estate continuing education, Annual Ethics and Professional Standards Development Workshops as required by the National Association of REALTORS, Approx. 36 hours of NAR Code of Ethics training annually, Numerous IDW, Seminars and Train the Trainer programs, Business Management Degree - 1981

Awards and Honors
2009 REALTOR of the Year Award, Southeast Valley Regional Association of REALTORS (10,000+ Members), Double Platinum Production Award ($45,000,000 Sales Volume)- Keller Williams Realty Int'l (2001), Top 15 Sales Production Keller Williams Realty International (2001), Top 5 Sales Producation Keller Williams Realty Southwest Region (2001), Top Recruiter Award - Keller Williams Realty Int'l, SW Region (2002), Who's Who in U.S. Executive (1983), Who's Who in U.S. Real Estate Professionals (2007)

©2012 About.com, a part of The New York Times Company. All rights reserved.