Expert: Karyn Foley - 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 -
Buyer's Agent Broke Agreement

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:  In most areas, the seller pays the commission to the listing agent and that listing agent's company is the one who pays the company of the buyer's agent who then pays the buyers agent.  If this is confusing, let me know.  In rare instances and in some areas, the buyer's agent gets paid by the buyer, but check that out because why should a buyer's agent get paid twice, once by the listing agent's company and again by the buyer?  Sort of double dipping.  Check out the practice where you are living.  Also, take another look at your buyer's agent contract, it is pretty explicit as to the responsibilities of the agent and usually points out an area where the agent breached one of the responsibilities. I would write a letter to the owner/manager of your agent's company, copy to the agent as well, and spell out how you were told that your agent said that he quit and why.  Then say that you want a written confirmation that you are protected from paying him in the event you purchase from another agent at any time, and that you are serving notice that the agreement has been voided.  This should be done, if possible, in person with the owner/manager and the agent.  I have never heard of a "retainer" but nothing surprises me any more.  Pick a responsible, honest agent from a company whose reputation is based where you want to purchase.  It is important that are are represented with integrity and diligence rather than getting any credit at closing.  A good agent is worth his brokerage fee.  You end up getting what you pay for.  Good luck, let me know what happens, and if you have any additional questions along the way.  Karyn Foley

Answer
Hmmmmm,send a self serving letter explaining all that I wrote to you before, and giving him 3 busn days to respond or that you will consider the contract null and void because he initiated the cancelation of your working together.  Send the letter by regular mail, by either certified or registered mail as well as this will mandate he signs for the receiptl, and fax it to him saving a copy if you have one that it was sent and received.  Anything else would entail speaking with an attorney.  You might also contact your local board of realtors and initiate a grievance against the agent stating that you have not been given written confirmation that your contract is voiced which puts you in jeopardy.  Hope that this helps, and that you have better luck with your next agent, who could also send notice to your ex-agent advising him  of the above as well.  Karyn Foley