Expert: Dick Dennis - 12/14/2009

Question
QUESTION: Dear Mr. Dennis,

We have been working with a discount Realtor with whom we have had a signed agreement that we would get a 50% rebate on the buyer's commission.  Recently after seeing a house that we liked, she tried to get us to start paying her up front for her time at an hourly rate.  When we refused, stating that that was not in our original contract, she wrote to tell us that she was terminating our relationship.  

Does she have any claim thru the procuring cause for a house that we recently saw with her if she has terminated our relationship?

Thanks





ANSWER: Cheap as cheap does, Jim. I suppose she can do as she chooses, but don't worry about having to pay her a fee up front if you didn't sign any document that stated you must. If I were you I would contact another Realtor to put a transaction together for you. And you need not be concerned about the "procuring cause" if she actually did not have you sign a purchase agreement. Just be careful of one thing: make sure she has given you a document that ends your relationship and HER BROKER (OFFICE MANAGER) has signed it. And be sure to give her a letter terminating your relationship with her, signed by you. If she is the boss or the entire office, then you need not be concerned. She has already given you a signed termination document (the letter).

Also, if you did not sign a buyer's listing before you started looking at houses with her, then you need not be concerned at ALL. The agent that helps you get you your house is the one that has earned a fee. I do wish you well.

Dick Dennis
dixiedee13@aol.com

---------- FOLLOW-UP ----------

QUESTION: Dear Mr. Dennis,

Thank you so much for your prompt reply.  One last question, in your last paragraph you talk about signing a buyer's listing.  What is that?  The only thing that we signed was the rebate agreement that outlined the 50% rebate and the right for either party to terminate the relationship prior to entering into a purchase contract.

Thanks again

Jim

Answer
A buyer's listing agreement, Jim, is similar to a seller's listing agreement, only the buyer is obligated to pay the Realtor a fee no matter who helps the buyer get a house, including the buyer himself. Most buyer's listing agreements stipulate that if the Realtor participates in a commission offered by the seller's listing agent, then the buyer's Realtor shall not be paid by the buyer for services rendered. However, it is possible for the buyer's Realtor to get a commission from both buyer and seller IF THE REALTOR DISCLOSES THIS FACT to all parties involved and the sign their approval. I trust this answers you question, Jim. I wish you well.

Dick Dennis
dixiedee13@aol.com