Expert: liznarr - 6/9/2006

Question
Actually there is no BIC.  The agent is an independent broker and in business for himself, there is no other person 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 if 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 -
Hi Steven,

Sorry you had this problem.  It should never have happened.

I would suggest that you call this agent’s Broker-in-Charge (BIC) and explain what you have written to me.  Ask for an unconditional release from the Agency Agreement you signed based on events you described, and be sure and get this in writing so that you are free to contract with another agent.

If the agent IS the BIC, or if the BIC refuses, let him/her know that since the agent BREACHED the Agency agreement, you plan to send him written notice by certified mail terminating the agreement based on this agent’s actions/breach.  Further, inform the BIC that you will also send a copy to the State Real Estate Commissioner and file a formal complaint if necessary (with the Real Estate Commission).  I can tell you that this is not language a BIC wants to hear.

I would hope that after informing the BIC of the above, you receive your unconditional release.

Good luck to you, and write again if you have additional questions.

Regards,
Elizabeth Narr


Answer
Steven,

If your broker is in business for himself, “he” is the BIC.

The way to protect yourself is to send him a Certified letter, stating that he breached your Agency Agreement by his actions (and list them).  I would add language that since he will not send you anything in writing to release you, YOU are terminating the Agreement immediately based on his breach.  Send a copy of your letter to your State Real Estate Commission, and so note this in your letter.

If you do not properly NOTICE this broker, you have nothing to fall back on.  You might also place a call to an investigator at your Real Estate Commission.  You can file a formal complaint against this broker, and they will contact him and conduct an investigation.

Short of all the above, you can contact an attorney who can send this broker a letter.

Regards,
Elizabeth Narr