Expert: liznarr - 8/9/2006

Question
thank you i just want to follow up with you. i talked to the brocker in charge and he did not want to help us at all with the release of buyers agent paper. insted he said to us i dont really see a problem and the agent will not give us a copy of this so caled buyers agent agement and is saying we are stuck with her till july 2007 which i know we never signed any thing like this. i belive it was blank at the time and we were told on phone cause this offer at the time was done by fax. she e had said on the phone that it was just for this home. but know she is telling us it is till 2007 july..... and i am not geting know help with this agent or office / brocker. and they are saying we cant go to any other agent till july 2007. i just dont know what to do. i called the board of realtors and they told me to write a formal complant. but the way are luck is going on this will it pan out in the end? julie
-------------------------

Followup To

Question -

-------------------------

Followup To

Question -
please help us. we have a buyers agent agreement and the Realtor dose not want to sine a release from and she did not return phone calls and did not show us homes and would not let us counter offer a home and when it came time to write an offer she did not have time to do it for 2 days and when she would show us homes she would say her mother buys and sell homes and she is going to show her this home maybe she will buy it and she would do this on all the home we wanted to put offers in, we felt so not right working with her and we talked to her broker and he said he will and can not do any thing about it ... what can we do?are we never going to buy a home. oh we never got a copy of the paper we singed and there was no date on it. please help Julie

Answer -
Hi Julie,

Sorry to hear you are having this problem.  It’s very obvious that you are dealing not only with an unethical agent, but also an unethical Broker-in-Charge – both of whom should be reported to your State Real Estate Commission.  It literally makes the hair on my neck stand straight up when I hear horror stories like this.

First, if you never received a copy of your Buyer Agency Agreement, that is the first violation this agent has committed.  A Buyer Agency Agreement is a legally binding Contract, and to legally effect a Contract, you must have received and “accepted” a copy of the executed (signed by ALL parties) agreement.

Second, if this agent (and I use the term lightly because the real estate industry can do without the likes of her) takes two days after notification to write an offer for you, this is a breach of Agency and also probably a violation of your State Real Estate Commission Laws.

Third, if she does not allow you to counter offer on a home, this is another breach of Agency, in addition to a violation probably of your State Real Estate Commission laws.

Fourth, if she threatens you with showing her Mother homes that you want to make offers on, this is another Agency breach and Real Estate Commission violation.

I could go on and on, but I think you see my point now.

For starters, send this agent and “CC” her Broker-in-Charge a certified letter.  State in your letter that you never received a copy of the Buyer Agency Agreement, so there is no binding agreement in effect, period, end of discussion.  Tell them both that there is no Contract to be released from and that you are going to purchase a house from another agent and will be filing a formal complaint against both of them with the Real Estate Commission.

Next, I would file a formal complaint with your Real Estate Commission against both this agent and her Broker-in-Charge.

In the meantime, try to find a reputable agent and ask all your questions up front before signing another Buyer Agency Agreement.

Before you write up any offer to purchase a house, please write me again for suggestions on things that should be included in any offer you make to protect yourself.

Good luck to you in your home search, and don’t hesitate to write again if you have additional questions.

Regards,
Elizabeth Narr


thank you so much i am just so upset we live in milwaukee wisconsin. can you tell me what to do when we write an offer. and the other thing know agents are wanting to help us till we are out of the buyer's agent thing. i am going to make some more calls and write out that letter today and mail it out.today thank you so much again.julie


Answer -
Hi Julie,

This will be a somewhat lengthy reply, but you have an important decision to make; and you should feel comfortable with the choice you make and should do your homework up front.

One way to help you select a good Realtor is to ask friends, family, etc., what Realtor they have USED previously and had good results with.  Ask pointed questions of their experience with a Realtor such as, “What did you like best or least about the Realtor; and what would you change if you had the experience to do over again; and lastly, would they use that particular Realtor again.”  

If you are new to an area, you can always ask the Realtor for references.  Keep in mind, however, that NO ONE gives names and numbers of persons who would give them a bad reference.

A good agent will readily volunteer their credentials to you.  If they don’t volunteer, ask:  How long in the real estate business; how many transactions did they average in the last year; what designations do they have (which indicates additional schooling after licensing); what Realtor associations are they are a member of; how extensive is their knowledge of the areas or neighborhoods you are interested in looking; negotiating skills; and how often and how quickly they will keep you abreast of new listings as they become available.

First and foremost, I would suggest that you work only with a Realtor who will be representing YOU, and not a Seller.  Agency (the law under which all Realtors work) should be explained thoroughly to you so that you will know your rights.  Ask what the agent’s company policy is on Dual Agency (representing both Seller AND Buyer); and find out if your state recognizes the facilitator concept where an agent represents neither Buyer nor Seller, but rather merely serves as a “facilitator” or go-between for two parties (this is not the best option for you).

Don’t forget to get pre-qualified with a reputable lender of your choice BEFORE making an offer on a home.  When making an offer, a pre-qualification letter that accompanies an offer can go a long way with a Seller.

When making an offer, a good Realtor will do all the following for you:

(1)    Give you guidance on what price you might offer on a purchase by providing you with sales on comparable homes in the area and who paid closing costs.

Provide you with a Purchaser’s Net Sheet, detailing all expenses you should expect to pay at closing.

(2)   Request a Seller’s Property Disclosure Form on any intended purchase so that you will have some history on your intended purchase and any problems the current Seller has experienced or is aware of.

(3)   Ask for restrictions of record for any intended purchase, average utility bills, and any surveys of record on the property.

Ideally, a new survey should be completed for you prior to closing.  However, if you do not have a new survey completed prior to closing, make sure your agent AND the Seller walk the property with you and identify ALL property corners and that you have the dimensions of the property you are purchasing – then make sure that the legal description at closing for your Deed coincides with measurements you were given and have previously verified.

(4)    When making your offer, make sure any Contract you enter into specifically spells out remedies for you in the event your home inspection reveals defects which you would ask a Seller to either correct or give you an allowance for correcting yourself.  Should a Seller refuse to correct major deficiencies, you need to have an “out” clause in the contract and be able to get your earnest money back.

(5)   Request a Seller to give you a clear heating and air conditioning letter and clear wood infestation report (for termites, powder post beetles, and any water damage or moisture problems) at closing.  You as a Purchaser should have the right to choose the inspecting companies.

(6)   If you have ANY unresolved issues, do NOT close until all issues have been addressed to your satisfaction IN WRITING.  After a closing, any unresolved issues could likely end up being pursued through the Court system and could be very costly and very time-consuming for you.

If there are agreed-upon repairs to be made AFTER closing, make sure that funds have been set aside to pay for the repairs.

As for choosing a good home inspector, first of all find out if the state you are in requires home inspectors to be licensed.  If so, make sure you choose one who IS licensed and carries insurance.  This may sound elementary, but can be very important.

Ask some of the same questions of a home inspector which I suggested above for a Realtor.  What you should look for in the home inspection itself are major problems that the untrained eye would not detect such as structural problems, water and/or drainage problems, electrical problems, Code violations, and plumbing problems.  Ask what type of report you will receive after the inspection, how quickly AFTER the inspection it will be received, and how detailed it will be.

I highly recommend that you accompany the inspector when he performs the inspection so that you can ask questions along the way and ask about possible remedies and costs for any defects he finds.

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

Regards,

Elizabeth Narr


Answer
Hi Julie,

Did you make a formal complaint yet to the Real Estate Commission?  This will not cost you anything except a little time.

This BIC and his agent sound as though they left their brains at the station.  I’m telling you, you are NOT stuck with this agent until July, 2007.  If you never received a copy of “whatever” you signed, you are simply not in any legally binding contract – especially if you signed a blank document.  And not to mention the fact that the agent did not comply with your legal instructions.  Any Buyer Agency agreement you “MIGHT” have had, if any ever existed, has been breached.  

You can file a complaint with the Board of Realtors, but there is a charge somewhere in the neighborhood of $200+ for doing this.

What you must do is find another agent.  If another agent asks you if you have signed a Buyer Agency agreement with anyone else, show them a copy of your Certified letter to the BIC and the agent.

My email address is liznarr@sc.rr.com    If you will email me your telephone number and give me a time frame that I can reach you, I will call you and try to set you up with an agent who can help you.

Thanks,
Elizabeth Narr