Expert: Jessica Bryan - 6/8/2006

Question
Actually the agent is an independent broker and in business for himself, there is no managing broker to contact.  Since he will not send me anything to absolve me from any future liability, is there any way I can protect myself from him claiming payment when I use another agent to help me complete a purchase.
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Followup To

Question -
Based on your suggestion, I contacted the agent and asked him to send me a document absolving me of any financial responsibility.  He said that he didn't want to waste any more time and refused to send me the document.

Is there anything you can suggest that I can do unilaterally to protect myself from any future claims from him?
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Followup To

Question -
I recently signed an agreement with a real estate broker to act as my buyer's agent to help me find and purchase a condo.  His original agreement was that once I purchased a condo, he would keep 1/3 of the buyer's agent commission and credit me 2/3 of the commission at closing.

He unilaterally tried to change the agreement to get an up-front retainer for his work.  I refused, and he told me he no longer wants to represent me.

Since I signed his agreement to represent me for 12 months, and he verbally broke the agreement, how do I protect myself if I use another buyer's agent and he comes back to me claiming payment based on the original contract?

Answer -
Dear Steven;
If the agent no longer represents you, he should prepare a document for both of you to sign absolving you of any financial responsibility to him.  It should state that he has no claim on any commissions that could be paid as a result of your purchase of any property you have seen with him or with another real estate agent.

I hope this helps.
Sincerely,
Jessica Bryan

Answer -
Dear Steven;
I assume that this agent works for a brokerage.  Call the Managing Broker to discuss your concerns and your requests.  This agent is acting as representative for the real estate company and since the managing broker may not even be aware of what has transpired, it would be in everyone's best interest to go over all that has taken place.  Make sure to keep calm and stick to the facts when discussing this with the manager.

Good luck,
Jessica Bryan

Answer
Put everything in writing and keep a record of what was said and when. Send a registered letter to the agent reflecting the dissolution of the agreement and agency stating your reasons and previous conversations. Make sure that you state (again) that you are not responsible for any further financial obligations.

Once you find a home with another agent it is unlikely that the first agent will claim any involvement. Unless he checks public records he will not know that you bought a home.  However, if he does find out, he can hardly claim that he is the procuring cause and would most likely not be entitled to a commission if it ever went to arbitration.  In situations where there is a claim from an agent that they are entitled to fees or commissions, it goes through the board of REALTORS and arbitration if not resolved or if disputed.  I have sat in on many of these and can tell you that the more evidence and record keeping there is the better. You should also make another professional aware of the situation: an attorney or someone at the local Board of REALTORS.

I wish you luck.

Jessica Bryan