Expert: Dick Dennis - 8/2/2006

Question
Hi Dick, hope you can help me see how ugly this might become.

I am currently in escrow on a semi custom spec home with an agent representing me.  As we have gotten further and further into the process it has become clear our agent doesnt do her job even close to well, and generally tends to freak out over any little thing.  She is constantly late with paperwork, has barely talked to us during the process, and now is yelling at others involved with the process.  Today I was told that she berated the loan officer (one of my clients) for even suggesting that I might qualify for a VA loan at this stage of the game (I had asked because loan rates have gone up and the benifits may now outway its previous negatives).  She told him that he should have checked with her first and then told me no regardless.  She feels this could add time and issues to the process and is angry that he would even consider giving my request a thought.  She told him that if we entered into a VA loan that she would tell the seller to just sell the house to someone else.  Now I know the seller is under contract with me and thats not something he can just do, but I am blown away she would even suggest this.  My wife wants to run her down with my truck (bless her soul).

I am afraid she may be acting like this with the seller and others dealing with this process.  Because of her issues I have dealt with all of the upgrades and details of the house personally so they dont get bogged down in her issues.

Here is the question, is there any way I can just fire her and represent myself since I have done most of the work as it is and she is now causing possible damage to the process?  If I can terminate her with cause would I still have to pay  her commission?  I just cant see her being fired for cause and then sitting back doing even less than she is now and raking in the dough :(

Thanks for your time.

Ray

Answer
In real estate there is what they call, "the procuring cause," Ray. Unfortunately, SHE IS the one who introduced you and took the offer to purchase to the seller. That is the procuring cause. I don't think there is a court in the land that would deny her the commission she has "earned."

By suggesting to change your loan to a VA, what you have done is to threaten to delay her commission. THAT is what she is more concerned about than anything else. I guarantee that. She knows that a VA loan takes approximately 45-60 days to close, depending on the available funds. Also, the seller may have to pay points. That, I am sure, was not written in the purchase contract. Further, VA loans have fallen out of favor these days because their interest rate is not much different than what you can get from a conventional lender. Plus, the seller usually is required to pay points. Points are a percentage of the interest rate designed to compensate the lender for the difference in the actual interest rate. (Long story, but that's enough).

So, you have a choice: 1. Tell her to shove the whole transaction and go out and look for another house. 2. Bite the bullet and continue on with your transaction. What it comes down to is: are you more interested in depriving her of her commission? Or are you more interested in getting that house? If it'll make you feel any better, she actually does not get the whole commission. Her office gets 40-50% of what she earned, unless she is the boss, which I doubt.

You could take this complaint to the local Board of Realtors. But first, take it to her boss (office manager) and see what he/she can offer you. THEN if they don't do anything, go to the Board.

I do wish you well, Ray.

Dick Dennis            dixiedee13@aol.com

www.OldProblemSolver.com