Buying or Selling a Home/delemma

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Expert: - 8/29/2009


Question
My daughter and her husband found a house. Becuase they have 'contracted' with a agent (this agent proved to have only sold 2 other houses and have lost them two house due to lack of knowledge, etc. - but his agency is holding them for the length of the contract 6 months) anyway - I want to buy the house they want - then sell it to thme next year. I can quick deed the property - but what expenses must we plan for the actual sale to them? Escrow? They are already qualified...thanks for your help.
By the way - How can a agency tie up a buyer fo 6 months on "any" house they wish to buy? Is this legal? Never heard of such a thing - I think they took advantage of their youth and inexperience.

Answer
Hello Bud - Please accept my apology for the delay in my reply. Contract law indicates that if they signed the contract they will be held to the contract, unless they were under duress at the time they signed it. Duress is defined by Black's Law Dictionary (6th ed.) defines duress as "any unlawful threat or coercion used... to induce another to act [or not act] in a manner [they] otherwise would not [or would]." That said, there are other ways to improve their position. First, the contract is with the Brokerage not the agent. Therefore, all agents licensed under the broker act in the form of Sub-agents of the broker. This means any agent at the firm can complete their representation under that contract. Therefore, if the issue is experience and qualifications to better represent them this is the direction they could pursue. Talk to the 'designated broker' at the firm and explain that it is the belief of the client that this agent does not have the experience purported prior to signing the agreement and having determined this individual does not possess this experience or the level you desire, and we request an agent who can validate their experience. The designated broker should be willing to do this. If not, or if you decide up front you prefer to use legal counsel to represent your position, you could use the term 'estrangement' which would mean similar to my previous comment. Since I am not an attorney I would recommend seeking an attorney if you chose the latter. If you acquire the property on your own, you could quit claim the property to your daughter and her husband almost immediately following the sale. There is no reason to wait to transfer the deed unless there is a provision in the guidelines of the loan used to purchase the home. Expenses to quit claim are different depending on whether you are in a lien theory or title theory state. AZ is a lien theory state and it would cost approximately $35.00 to have an escrow officer complete the Quit Claim Deed and file it! The only additional factor to this is that by transferring title you may also be violating a 'due on sale' clause in your loan papers. This may be a concern and you should contact legal advice to determine your exposure should the lender desire to accelerate the loan (call it due). I anticipate that the broker will be willing to provide another agent in their firm with more experience to better serve your daughter and son in law. There are truly numerous advantages to using a professional experienced REALTOR when buying or selling a home and not all agents have the experience or fields of expertise that may be required for a particular purchase. There is some buyer beware, not of the agent's intentions, but to their level of experience. If you would like me to explain the purpose and benefits of Exclusive Buyer Representation please reply and I would be happy to. I hope this has answered your questions satisfactorily. Let me know if you have any additional questions. - Todd Menard

Buying or Selling a Home

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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)

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