Expert: Laurie Stephenson - 11/8/2009

Question
I am wondering if there is any action I can take against a realtor who, in my opinion, did something unethical.  I know there is nothing I can do to get the house that I lost, but I would like to do something to make the realtor understand the pain she caused.  She was so rude and unapologetic that it left me feeling so violated.  She was the seller's realtor, and she was the realtor that I had been working with to find a house for over a year.  I made an offer on the house.  The sellers countered.  I said I needed some time to think about it.  The sellers came back and said they would take my counter offer.  I told the realtor to write up the contract.  The realtor said the contract would be on her desk if I wanted to come in and sign it, but she was going on vacation and would call me when she got back if I wanted to wait.  I asked if she would let me know if there was any one interested in the the house in the meantime.  She said she would let me know immediately.  When she came back from her vacation, she called me at my office and told me that she had sold the house to some people who looked at it one time and signed a contract on the spot.  I later found out that the people had looked at the house at least 3 times and had called her numerous times with questions about the house.  Immediately after receiving her call, I went to her office and signed a back-up contract.  Not knowing what the buyers had offered, my contract was for $25,000 more than they had contracted.  The owners of the house were curious what happened, because they knew that I had been intested and had put earnest money down and had oaid for an inspection, etc.  They tried to get out of the contract with these people, but it was too late.  The house was, of course, sold to this couple for $252,000.  My back-up contract was for $275,000. My original offer was for $268,000.  The house originally listed for $279,000.  The realtor's broker took her side and stood up for her when I complained. I feel that this realtor did not do her job representing the sellers or me.  I just can't understand why this realtor would want to sell the house to these other people for $252,000, when she had a contract ready for me to sign that was for $268,000.  I overheard a conversation this realtor had with a friend of hers when her cell phone did not turn off after talking with me, and she told this friend that she was "tired of showing me the house and didn't care if I got the house or not"  She was obviously angry that I had asked to see the house three times and was taking a while to decide what to do.  I have looked for another house for over a year now, and have discovered that the area I am in doesn't have much to choose from.  I don't think I will ever find a house like that one.  I want to let it go, but this woman really messed up my life.

Answer
Hi Catherine,
Wow! I am so sorry that happened to you. As I am a professional Realtor, I follow a code of ethics. It is upsetting to hear of people who feel they have been treated badly. I am not an Attorney, but I will give you my thoughts.

I don't know where you are located, but in Upstate NY where I practice, you can submit a complaint to the local Board of Realtors, you can also submit a complaint to the Department of State as they are the licensing agency for Real Estate in New York. Be aware that the agent will have an opportunity to present her point of view as well.

I would be sure to have all documentation associated with your offer and any dated materials you may have signed with her. You stated you worked with her for over a year. Did you sign a Buyers Agency with her? Did you go to her office and sign the papers she left for you? If not she may have felt that you were not serious, or had changed your mind and so she moved on to the next buyer. Include anything you feel is pertinent to the complaint. I definitely recommend you talk to an experienced Real Estate Attorney for advice. At this point, there is nothing that can be done regarding you getting that specific house, but the agent can be sanctioned or fined if the investigation finds she was at fault. At the extreme, her licence could be revoked. Please be aware that filing a complaint is serious business. Don't take it lightly. Think about your desired outcome before you file. Also check with your Attorney as to the Statute of Limitations. It's not clear how long ago all this happened, you may have waited too long to act on this already.

Once you are ready to start looking again, please know that all Realtors are not like your previous agent. Call me at 518-469-9000 and I will be happy to find you a well trained and ethical agent to work with you in your local market.

I hope I have helped you,
Laurie Stephenson

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Hi Again Catherine,
I'm so sorry, I don't know the W. Va area at all. Do talk to that attorney again, as he/she will probably know the licensing authority to present your complaint to.
Good Luck!
Laurie