Expert: Karyn Foley - 8/21/2006

Question
Approximately 3 months ago my husband and I selected an agent thru a very reputable and large agency. This agent was new and it was her first house (our first mistake), but we were guaranteed her field trainer would be with her every step of the way (didn't see her). Our next mistake was not making sure her field trainer or the realty office checked up with us along the way (even after we had called and complained to her supervisor about our agent). My husband and I kept reasuring ourselves that everything was fine, obviously if there were going to be any problems, they would contact us (that was our third mistake). Then we got an offer 6 weeks in to our venture with this company, we thought great. Then week by week, we heard nothing from our office. We began to get worried and were told, everything looks great, don't worry. Approximately 1 week after that our agent called to tell us that she could no longer work for this agency and she was quiting. I was furious needless to say, I kept saying you signed a contract with us and you should follow this thru, especially since the sale is pending. With no luck, I called her office manager and asked what was going on? Her manager assured me that everything looks great, not to worry and with her field trainer taking over, we would be in better hands. I thought ok, fine (our forth mistake)we will get thru this. Then again as week to week, worrying why no word from anybody, my husband called stating that they were aware that we were moving in to a new district and needed to register my daughter for school and we were going in to an apartment temporarilly to just get her in to school and would then begin looking for a house. She again stated everything looks great and don't worry. We worried but listened to her (our fifth mistake). Then 1 week ago (8 weeks in to the offer) my husband talked to her stating that we needed to go and sign the lease on the apartment, pay $2250.00 to move in and register our daughter for school. She said, yes, go and do that, everything looks great, on Tuesday we should have the closing date. We again believed her (our last mistake). On that following Friday I found out thru my closing attorney that indeed, everything was not fine and it fell thru. The kicker was that our agency was aware of this for 1 week and did not tell us, they were even aware of it when my husband asked if we should go and sign the lease on the apartment. Our agency did apologize for not telling us, but where are we now? Out $2250. for the $ down on the apartment, time taking to re-register my daughter in another school and trust dealing with these people. They have assured us that they in fact will sell this home, but it does not seem like they care. Help with any legal advice or ethical advice.

Answer
Dear Gina:  What a horrible situation!  I am so sorry you got involved with such an inferior agent and company.  I cannot help you very much, as I do not have a copy of your contract, nor can I "practice law without a license".  Any legal direction should come from your attorney.  I strongly suggest you enlist the attorney's assistance.  Perhaps pressure can be put on the office to pay your expenses since they admitted they were not forthcoming.  They did not do their fiduciary responsibility.  You should insist that they release you unconditionally from your contract; your attorney can support this move if you do not get it on your own.  Interview the leading agent or company in your neighborhood, and when you select an agent, only give them a three month agreement, with the right to extend it. Make certain that your next agent advocate puts everything in writing and has better skills with follow-through.  People's word is not enough, you need confirming written agreements. You should also get all of your self-serving notes together and prepare a file in the event you take advantage of your local small claims court.  That is another option.  Never, never, never go forward with a new property unless or until you are guaranteed a closing, and that isn't going to happen.  After you close your next transaction, then rent even a motel room close to the school of choice.  When you have your money in hand and are in that kind of rental situation, you become the best buyer in town.  You will be in a position to truly negotiate the best possible price.  You may have some recourse as well with reference to the agents' and company's ethical situation.  Call your local real estate board and see if they have a professional standards committee or grievance committe with whom you can file a complaint.  You probably won't get any money back, but you can put a black mark on the reputation of those who were involved.  Good luck to you, and please let me know how things work out and if I can answer any more questions. Karyn Foley