If the first agent can demonstrate that he is "procuring cause," then, it is certainly possible that he will prevail.
When I questioned the bad buyer what cause he had to fire me, he could say only that he wanted to sieze most of the commission that I had earned. He could think of no other reason, nor could I.
Heather and her uncle gave plausible reasons for wanting to fire their agent. Still, my experience has me wondering.
Good luck with this situation!
Most agency disputes center around "procuring cause". The issue here is that the first agent brought you to see the house that you made the offer on, and so will likely be considered the agent who is paid.
There's not much that can be done on your end now, as the brokerages will dispute this from here on. Hopefully they will come to an agreement that satisfies both professionals.
Your uncle had every right to choose another broker and without a Exclusive Buyer Broker Agreement in place the 1st agent has no claim. In my opinion the procuring cause is fulfilled when the contract is written and accepted, and that was accomplished by the 2nd agent. Before the 1st agent sued anyone I think the Brokers would figure it out and if not, would go to the Board of Realtors for arbitration if they couldn't agree.
Best of luck,
The first agent could take it to the board to try to get the commission from the second agent, but I think it is unlikely that they would have much standing against a purchaser.
Unfortunately, people can and do sue for lots of unwarranted reasons. I can't imagine the agent suing your uncle, but you never know.
Once of the homes had been reduced $15K by seller and only been in market for 10days, I told buyer of the actual new sales price although it was still showing higher, he than said he wanted to offer $12K less from new price plus $3500 in Closing cost. I explained to buyer that if he wanted to go this route he was risking the fact that another buyer could come and snatch house while we made low offer and most likely got a counter back, he insisted, I wrote the offer and sent it to him to never hear back from him again after leaving a Voice message, text & emails.
Then I found out that house is under contract with this buyer as he contacted not 1 but 2 other Realtors to show him house and made offer! Because I had already contacted Listing agent with this buyer's name she was able to let me know he was under contract.
I have filed in Small claims court a law suit against him and as soon as house closes will file with the Board of Realtor a claim against the agent that helped him as this buyer had agency agreement that doesn't terminate for another 4 months! People need to learn to be honest in this world
My point was that Heather, the person who posed the question, never stated anything about a commission reduction/rebate. The agents that have answered have shared their own experiences and one mentioned something about a commission rebate when something similar happened to him. These threads on Trulia are not chronological and we have to look at who said what and when before we answer in order to get a complete picture of what happened.
I certainly don't want to work for free. We all work hard. I use buyer's agency contracts and listing agreements so that everyone I chose to work with is clear up front on how I expect to be paid. Works for me and I don't have issues down the line.
I am not clear where you got the information that the second agent offered his commission to "sway the buyer." I must have missed that in the information that Heather supplied when she asked this question nearly a year ago. I don't see here that Heather has made any comments about this since May 2010.
Patrick A. Hale, CDPE, RSD
Real Estate Broker & Investor
REO & SHORT SALE EXPERTS WITH A MISSION TO:
"Help Over 360 Distressed Home Owners Avoid Foreclosure"
If You or Someone You Know is in Financial Distress Visit: http://www.SDRealEstate360.com
I am sorry. I missed the explanation that you gave afterwards regarding an offer written by the first agent on behalf of your uncle. Was that offer presented to the Seller? You also said that the first agent made a mistake in the offered price. Did you uncle signed the offer? Was there a response from the Seller on the offer? All these could make a difference in the "procuring cause" situation but again, it is my opinion that the first agent might have a case against the second agent if an offer was presented to the Seller but without a Buyer's Broker Agreement I don't believe he has a case against your uncle. This is only an opinion. I am not a Real Estate Attorney.
the transaction and can be deemed incompetent, something you should press a complaint to his or her employer.
Real estate law is pretty specific as to what the duties of a licensee (broker / agent) are, and under what conditions they are to be paid. None of which has very much to do with "being happy with the agent's service," or having emails sent of the type you quoted.
"Procuring cause" is looked at differently from state to state, but I think that, unless your uncle can demonstrate that the first agent behaved in an illegal or unethical way, he is going to have to resolve this "procuring cause" issue in a way that doesn't obligate him to pay a commission to one of these agents.
All the best,
" If you buy any condo that we showed you, we are entitled to a commission.
We have a right to pursue you, your new agent or the listing agent of any property we showed you for
a commission on any property that was shown to you or introduced to you by us. I wish you good luck and all the best. but we cannot let people cheat us out of commissions."
"I understand you are not happy with my service, but I would like for you to reconsider that. There is no honest, legal or ethical way to cut me out of any properties that I have shown you. If you are 100 percent sure to dump me for another agent. Please let me know so I can know how to proceed."
I don't know...is it right for an agent to talk to customer like that? I know he is upset because he may lose the commission but he lost the commission because my uncle can't trust his service and advise!
First, he didn't explain/give "customer information statement" to my uncle (we know that's important from his 2nd agent) Second, after my uncle tell him he is going to make the first offer and have signed all the documents, he has to call/email the 1st agent several time to confirm if his offer has been submitted. Third, the 1st agent actually made a mistake in the offered price submitting to the seller, my uncle asked him why did that happen, and the 1st agent didn't reply him until my uncle send him notice and tell him that he decided to move on with another agent. Forth, until asking other agents, my uncle realize actually there are many things about the property that the 1st agent didn't tell him. Apparently the 1st agent wasn't very familiar with the property.
I don't know..this is USA. Anyone can sue anyone if he has time and money. But if my uncle was really unhappy with the 1st agent's service and after receiving those very unfriendly email sent by the 1st agent, there is no way he can work with him anymore.......and the 1st agent still claims he has the title of the commission? that really doesn't make sense to me....
Tricky business, and always unfortunate when it gets in the way of a happy ending.
It's unlikely that the agent will sue your uncle, but they may approach the 2nd agent's agency, asking for a portion of the commission. Does the 2nd agent know the full details of how this worked... if not, he should be filled in so that he and his broker can respond accordingly. He may have to give up a portion of his commission, but that shouldn't really involve your uncle.
Where the first agent was procurring cause they may have some claim of the commission but dont think they can sue teh buyer as they had no agreement. the best thing to do is at least use teh first free meeting with an attormey to get some direction.
We saw a house in Open House and asked our Buyer Agent (no contract only representation) to write an offer. Offer was not accepted. We made offer for another house (again we saw in OH). This was a Owner Sale and Owner offered 1% commission. Our Agent insisted for 2% and the deal fell off ( we learnt about all these from the Owner after the deal fell off).
This made us upset. I think she should have told us that seller is offering 1% and she would not work for that. We told her we will not be buying anything.
Few days later, we went back to the first house directly through the Sellers Agent, negotiated further and offer is accepted. The Selling Agent has now added the following in the P&S -- "Buyer represents and warrants there are no other broker with whom Buyer has dealt in connection with purchase of the premises ". I am suspecting this will be a lie and our earlier Agent might come after us for commission . Please advise
Remember, our agent did not show us any of the property , just wrote offer.