Home Buying in Glendale>Question Details

Meshylle Anne…, Home Buyer in Glendale, CA

I changed my realtor due to some reasons. My new realtor and I went to see this one property that my previous realtor and I saw. Is that a problem?

Asked by Meshylle Anne Martin, Glendale, CA Wed Mar 14, 2012

We made an offer but then the seller's realtor said that there's gonna be a problem. Need help! I like this property a lot.

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Jeero Habeshian’s answer
Hello Moimoi:

You ask a good question which can have several correct answers. However, the way I practice real estate, and teach our agents is very simple: If there is a question of what we call in the industry and legally Procuring Cause, the bottom line is who is the buyer/client wanting to represent them.

Unless you have an exclusive buyer/agent agreement with the previous agent, it would be difficult for that agent to claim compensation. You should also consider how much work the previous agent did for you, and why you chose to make a change. If you end up writing an offer on a property the previous agent showed you and you buy it, one solution is to give them a referral fee.

Your experience of buying a home should be a joyous and fun time. So iron out possible kinks in advance and you should be good to go. Good luck to you!
1 vote Thank Flag Link Wed Mar 14, 2012
It may not be a problem for YOU, but your previous agent could SUE your new agent for their commission even after closing, based on 'procuring cause'. There are a lot of gray areas pertaining to procuring cause, if a suit is brought the emphasis will be placed on HOW LONG it was, how much time had passed since your previous agent INTRODUCED you to this property vs. when your new agent brought you back to the same property you saw with with prior agent.

Procuring Cause is most accurately defined as : An order or series of events that without break in continuity lead to a sale.

In your case the "break" could be considered your switching agents.

If I were in the shoes of your current agent, I'd be consulting with my broker or a real estate attorney right now to see if I would win a case against me based on procuring cause, if it doesn't look good for me, I would probably offer to your prior agent a referral commission.

I don't look back on this same Trulia thread for answers posted after mine.

562-430-3053 c
Realtor Since 1996
Main Street Realtor
0 votes Thank Flag Link Wed Mar 14, 2012
Only if you have a buyer's representative form signed. Otherwise, you are free to change realtors with no problem
0 votes Thank Flag Link Wed Mar 14, 2012
Good question, the original agent would have to contest it, but each case is evaluated individually and the details would have to be reviewed to see if the original agent is entitled to all, some or none of the commission.

If you did sign an exclusive buyer/broker agreement with the original agent that would also be taken into consideration. There are professional standards and a code of ethics that have to be followed in this scenario by all parties.
Web Reference: http://www.anaconnell.com
0 votes Thank Flag Link Wed Mar 14, 2012
The question of the Agent's compensation is really not your concern:
It should have been; you should have thought about it before now; but now, it is between them.
The Listing Agent and your Agent should be working hard to close your deal and they should not be involving you in the commission problem.
0 votes Thank Flag Link Wed Mar 14, 2012
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