Agent2Agent in Holly Hill>Question Details

Jogi Juergen…, Real Estate Pro in ,

Multiple buyers for the same property - how to handle ?

Asked by Jogi Juergen Gerner, , Tue Mar 1, 2011

Agent A and his Client #1 submits 2 offers for less then the asking price. Before accepted, the Broker/Owner of the same company has another buyer, Client #2, for the same house. Since Broker knows about the details of the first offer from Client #1, he informs Agent #1 about this other offer. Agent B / the broker does not disclose the details about the first offer from Client #1 to his Client #2. Then Client #2 also submits an offer with the broker which was not accepted neither. Client #1 is upset and stops working with Agent #1 and his Broker, he goes straight to the listing agent and owner of the home. Listing agent decides on a deadline. Both buyers submit their highest offer and Client #1 win´s as he submits the best offer.
Q1: Can Client #1 just cut his agent and the broker out, just because the broker was competing with another buyer interested in the same home ?
Q2: Should Agent A and his broker be paid their part of the previous agreed commission ?
How to decide

Help the community by answering this question:

Answers

7
BEST ANSWER
Absolutely.. The agent "sold" the house and actually even has written proof of an offer written. In Florida we have a thing called "procuring cause" an clearly the original agent was directly linked to this buyer.

Regardless of the ethical/legal standpoint, the listing agent would be wrong if he tried to not compensate the realtor. Buyers come and go but agents will be working with each other for years to come, why taint your reputation?
0 votes Thank Flag Link Wed Mar 2, 2011
Why would Client #1 submit 2 offers? (Line 1)
If Client#1 wins based on the offer, WHO submitted the offer? Did they get another agent, or when they went to the L/A, did the L/A double-end it?

Bottom line - sounds like that agent could have some recourse, but will it be worth it?
1 vote Thank Flag Link Wed Mar 2, 2011
When no rules are in place we use common sense or adopt the ones established and approved from other countries!
0 votes Thank Flag Link Wed Mar 2, 2011
Jogi,

Since you mentioned the whole situation happened in Central America, neither what I wrote may apply. I am sure the country's real estate law or rules (if any) where this happened regulates this type of transaction.
I don't think that since the listing agent is from US he may apply the same rules in the Central America (unless the same rules needs to be followed) where he lists the property, but I can be wrong. Even within US we as agents must go with federal and state laws (state laws may and sometimes varies from state to state). Now you made me curious the outcome of the whole transaction. Seems very interesting.
0 votes Thank Flag Link Wed Mar 2, 2011
Kathy: Client #1 submitted the final offer himself without an agent. He approached listing agent who denied to represent him because of conflict of interest. Client #2 submitted his final offer through the broker.
Listing agent just stated the Client #1 got the house. He does not want to disclose any details of the accepted offer nor the final price.
0 votes Thank Flag Link Wed Mar 2, 2011
Thank you for the comments. Kathy: They initially submitted 2 offers because the first was not accepted, after the second offer was submitted the other buyer appeared.
Alma and Edyta, this happened in Central America where we have not so many laws and rules, so we are excited to see how you in the US would handle it, buyer, seller and listing agent are from the US. By the way, the asking price of the home is US$1.75 Mio. for a nice beach front home.
Yes, procuring cause is the word, thanks again,we really appreciate it, please feel free to comment or ask further.
Jogi
0 votes Thank Flag Link Wed Mar 2, 2011
Q1-I am afraid that the buyer has the right to do so. Once he realized the situation, he may chose to work with another agent/broker.
Q2-As Alma mentioned, the broker and his agent should be enititled to the commission since they were procuring cause (at least in FL) I don't know California law, so cannot advice if the same may apply in CA
0 votes Thank Flag Link Wed Mar 2, 2011
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer