Ron Mangas Sr

This buyer must consult with their agent/broker as to how best to proceed with this builder and future walk ins. There are too many unknown variables in the question as to jurisdiction, written agreements, sign in sheets, builder status, etc. to offer comprehensive suggestions. My comment on agency law was intended to demonstrate how the process “should” work between buyers, sellers, and their agents and to provide a basis for discussion with the buyer’s agent. It is true that when buying a home from a builder, a salesperson who is a direct employee of a developer firm which is not also operating a real estate brokerage firm may skirt some of the regulations including agency disclosure, the point when discussion of representation and commission obligations begins. I also worked for a young developer years ago as an unlicensed direct employee before the firm became an established brokerage, at which time I was required to become licensed to show company property. The practice of licensed salespersons placing active real estate licenses on inactive status to work as direct employees for builders may be because the builder does not operate a licensed brokerage in the state and/or does not want the agent selling competing homes with another brokerage. Let’s hope anyway. - Thu Dec 17 2009, 07:55