Canadian Real Estate/Dishonest Buyers Agent
We have signed a buyers agreement with a realtor, he has also just sold our home. We are now looking at properties and he was dishonest regarding a property we wanted to view, saying that it had an offer on it and the seller would not let us see it. We were skeptical so I called the seller to confirm - she said she had not spoken to my realtor and that her home was a 'For Sale by Owner' and she was not offering any buyer commission - she said it did not have an offer on it. I am assuming this is why he was dishonest. What do I do about this? Does it void our agreement if we want to purchase the FSBO home as he is not acting in our best interest? Or what would you advise? We would have been willing to work out a deal and I do not expect him to work for free but I am now wondering what else he has not be upfront about.
Are you signed under a BRA? Buyers Representation Agreement? If so, it should not matter to him because there is most likely a guarantee that he will get paid by a pre-determined amount. An amount that you as buyers would be responsible for regardless of if the FSBO is offering a co-operating commission or not. The reason for this is so that he should be showing you everything that is on the market and knowing that he will get a commission for his work.
If there is no BRA then he is not really legally bound to show you everything. In practice I usually work under a BRA and if I do not and I come across a FSBO then I contact them and ask them to sign something guaranteeing the commission. I find that 90% of people are ok with doing that.
You say you have an agreement so I am assuming you did sign a BRA and are in Ontario. If you want out then you need to call the Broker of Record or manager at his office. The deal you signed is with the brokerage not him and only they can release you from it. Generally most of them have no problem doing this or assigning another agent to help you.
Good luck and I am sorry you have had a bad experience with a Realtor.