Home Buying in 60653>Question Details

Jessica John…, Home Buyer in Chicago, IL

Can I Change Realtors while under contract for a property?

Asked by Jessica Johnson, Chicago, IL Sun Dec 9, 2012

Originally I was working with a realtor who showed me "her property." As she was saying that it was her property, from outside looking in I thought that she must have been the listing agent, thats what she meant as her property. Fast forward it is her actual short sale property, she didn't disclose that she was a licensed realtor in the contract, and has her boss as my "realtor" on the sales contract.

Fast forward and she is not working in my favor (Obviously) with negotiations. I need the seller to tack on closing costs and she isn't working that deal out. She also stated that the shortsale price was set, and the bank is not up for negotiations.

My deal with Wells Fargo went down hill after I didn't approve of a lot of their costs, and started shopping elsewhere. She took that as I was cancelling my contract and started to proceed with her attorney with a cancellation. As I did not want to cancel, and my attorney has already halted this. Can I have another attorney?

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17
I recommend reaching out to her broker and have them let you out of the contract as what they have done is unethical. If that doesn't work then you can take it to the next level.



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2 votes Thank Flag Link Sun Dec 9, 2012
I would talk to the managing Broker of the Realtors in question. If you are not comfortable working with someone you are in a bad place. However this person could be the procuring cause for all or part of the deal. Speak up and talk to their manager and explain with this story. You want good support.
0 votes Thank Flag Link Sat Aug 15, 2015
No you cant ! if the property is under contract with that realtor , nothing you cant do
0 votes Thank Flag Link Tue Sep 24, 2013
Jessica, no matter what happens with this transaction, if you pursue short sales, you are not in the drivers seat. I'm not surprised that the negotiations aren't going in your favor. The bank will do what they want to do to get as much out of this sale as possible, and up until closing, you may not know what the final cost of the property will be. I also doubt that you would receive a closing cost credit. If you want to know exactly what's going on with your purchase, feel like you have some negoiation power, and have the seller honor your request to cover closing costs, then I would definitely find another property, and one that isn't a short sale.
0 votes Thank Flag Link Mon Dec 10, 2012
This sounds riddled with problems. Did you have a finance addendum that states if you can't get approved for financing that you can cancel? You haven't even mentioned a home inspection. Jessica, do yourself a favor and get out of this deal. You will always question it and most likely regret the purchase of this home.

Find an Exclusive Buyers Agency through http://www.naeba.org Stop looking for a home until you untangle this mess and the agent cannot claim she is the procurring cause of your home purchase, as she will always get the commission under those circumstances.I have buyers sign broker agreements all the time. They are only for 90 or 120 days. If you signed one just wait it out.

The local Board of Realtors might be helpful. This is an ethics issue the way you are explaining it. If the agent and her managing broker did not disclose to you that she was a licensed agent and the home was in your local MLS it should state that the seller is a licensed agent, but it sounds like you saw it in writing somewhere along the line? You don't need another attorney, your attorney did you a favor and stopped the contract, correct?


Why do you want this house so much?
0 votes Thank Flag Link Sun Dec 9, 2012
ask your attorney about Procuring cause
0 votes Thank Flag Link Sun Dec 9, 2012
Lots of opinions, lots of problems. You can change Realtors, but the one who has done all the work so far, whether you like how it has gone, or not, is the one who will get paid if this sale closes. You may have an issue even if your deal falls and you get another agent to write on this again.
As several others have said, consider walking away, or if you want the property, accept the fact the road to this as your home is through the agent you have now and work out the issues.
You can sort out the alleged brokerage issues after the closing, the outcome will not change the facts of what the agent did in terms of her responsibilities.
0 votes Thank Flag Link Sun Dec 9, 2012
Jessica
I forgot to mention this deal has an issue with it being an "arms length transaction" and again still recommend that you just walk away . You are going to have nothing but trouble with this deal closing as I have done many shirt sales and this sounds very shady.
0 votes Thank Flag Link Sun Dec 9, 2012
Hello Jessica,

Did you sign a buyer broker agreement with the broker that is representing you? If so you may be bound to continue to work with your broker. If not you are free to do whatever. That said, since you are already under contract and if you want to continue with this transaction then you are pretty much stuck for this transaction only.

Secondly, why not ask your attorney to seek a way to get you out of this mess, provided that is what you want to do? It sounds like the deal is being cancelled. Again, check with you attorney to determine the status of the transaction. He/she should be advocating in your best interest.

Good luck!
0 votes Thank Flag Link Sun Dec 9, 2012
Hi All and thanks for your quick responses!

Phillip- Can I have another attorney was a typo, I explained that immediately after in another post.

All others, I do realize my mistake with not immediately finding another realtor, as I am a first time homebuyer and got caught up in her terminology when she stated it was "her" property, I thought she meant she was the listing agent.

She still had paperwork to turn in to the lender before the negotiations even started. We agreed at 140, 500 with seller paying 3% towards closing costs. I just feel a disconnection with her and realized I made a mistake, obviously, that's why I am seeking advice to rectify it! Appreciate all advice!

FYI I did contact my attorney and he stated that she was in violation of her brokers license.
0 votes Thank Flag Link Sun Dec 9, 2012
Jessica,
Your issues with this process are concerning. I would question why you did not have a broker representing your interests in the purchase of this short sale and chose to use her managing broker in representing you in this transaction. I specialize in short sales and these are complicated transactions depending on the banks that are being dealt with, how many loans are on the property, if there is a contribution being asked of the seller by the banks, etc.... The list goes on so to speak.

I would be happy to help if you have terminated your agreement with the broker/agent representing you in this transaction. As agents we must be careful in soliciting another brokers client.

I am sure you have learned thru experience that these types of transactions require a true specialist.

My best to you and hope it has not deterred you from purchasing, it truly is a great time to buy!

Laura Meier
Broker, Short Sale Specialist
@properties
212 E. Ohio Street
Chicago IL 60611
email: lmeier@atproperties.com
cell: 312-282-2122
see my short sale listings and more about me at http://www.atproperties.com/laurameier
0 votes Thank Flag Link Sun Dec 9, 2012
It sounds like a bad deal all around and it does not sound very professional nor does it look like it will ever close. I would walk away from this deal
0 votes Thank Flag Link Sun Dec 9, 2012
Why do you want another attorney? I thought the problem is the agent? She seems to have a problem, but without knowing how the contract is worded and what, if any, Riders and Addendums were included in the contract, not sure if she is in legal/ethical trouble.
Short sales can be very difficult to understand for many 1st time buyers. If the list price has been 'approved' by the lien holder then, depending on how long it is been at that approved price, it might not be negotiable...................but you should have dealt with that price a long time ago.
Once the contract is agreed to on price and terms and signed off by both you and the seller it goes to the lien holder for approval which can take 2-4 months. During that time you cannot ask to add credits or make other changes. However, the lien holder might not approve the price and ask for more $$ and/or ask for other things. The you can agree or not agree or make counter offers. Your agent can explain it or have your attorney explain it since it is unclear if, or who, your agent is. If you refuse to accept the changes Wells wants then the deal 'usually' is over and from what you have said in this and other questions, perhaps that is a good thing. Get your maney back and start over.................but you need to speak with your attorney as these are legal issues. I would not try to switch attorneys in the middle of this seemingly complicated transaction. Your attorney is your best/only hope of getting out of it in one piece.
0 votes Thank Flag Link Sun Dec 9, 2012
Jessica,

With short sales, misunderstandings are common. Especially with individuals that are not familiar with the complexity of the short sale process.

If the "asking price" is a bank approved price, the lender will likely not receive offers below their asking price very well. Thus, negotiations may not be a realistic option.

As a short sale the owner/agent cannot be involved in the selling process and must remain at "arm's length" making certain to steer clear of involvement. This is a commonly accepted regulation that governs these sales.

Now let's be realistic....a short sale can only exist when an owner demonstrated a financial hardship to their lender. To request and expect seller contributions to closing expenses, etc. may not be something the seller can financially handle.

With short sales you actually have two entities that are experiencing a herdship...the seller and their lender. For buyers seeking to expand their opportunity beyond what is reasonable may be an effort that meets resistance. Knowing the facts, understanding the process, and being reasonable and fair could make the difference between success and failure.

Good luck,

Bill
0 votes Thank Flag Link Sun Dec 9, 2012
Yes, Suzanne is correct. You should consult with your attorney. You may be too far in the transaction to find a new Agent to represent you now.

I hope this answered your question! If you have any further questions, please feel free to contact me by the ways below.


Wishing you all the best,

De Vonte Williamson , LSA
Proudly Serving Long Island
Coldwell Banker Residential
(631)384-3695
http://cbmoves.com/DeVonte.Williamson
http://devontesellsny.wordpress.com/
DeVonte.Williamson@cbmoves.com
"I Stand Behind Getting You Results!
0 votes Thank Flag Link Sun Dec 9, 2012
This is an excellent question to ask your attorney. You are so far into the transaction I am really not sure since I am pretty certain the offer you placed will list her boss as your agent. However, if your 'agent' is not acting in YOUR best interests you may have a good case for changing that. I would also ask if a realtor can list their own property as a short sale. I thought that was forbidden.
0 votes Thank Flag Link Sun Dec 9, 2012
Can I have another Realtor** Sorry Typo
0 votes Thank Flag Link Sun Dec 9, 2012
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