Most listings have clause that says if they property is sold during the listing period and closes later, they listing agent is still due their payment.
Yes the old listing agent probably has a valid law suite against the sellers, your agent and maybe even you.
While your agent's efforts are probably well-intended, s/he has crossed an ethical line (not a legal line) by developing a relationship with the sellers and now trying to pull the sellers away from their original agent.
You may not like my advice but here it is: Consult a real estate attorney immediately to determine your rights and whether you should cancel this purchase contract and move on to another property. You will also need to decide whether you will still feel comfortable being represented by your current agent in light of the facts you have presented.
Broker Associate #01142186
Dual agency is legal....but is hard to do cleanly. It can only be utilized however if both parties agree...so consent of buyer and seller is needed for this to happen.
I normally do not have a problem with dual agency, however, I have a legal background, I was a paralegal for many years, and the rules of ethics were pounded into my head. I do believe it is possible to represent both buyer and seller and do a thorough and ethical job of both at the same time. However, in this case thee are other considerations and I would be talking to my OWN broker before even suggesting it here.
If you are worried about dual representation, you should not give your consent. And, before you DO give you consent you need to talk to both brokers, the owners of you agent and the listing agents' offices and ask them both about the issues I raised here.
I understand your agents' frustration. I am a short sale specialist myself and I have had more than one transaction where I had to do MY work as well as the other agents' work, but that is MY ethical duty to MY client. Sometimes, that's just how it goes.
While in the middle of a transaction, the listing agent retains his status as listing agent, even if the listing contract has expired. So I understand that the buyer's agent is helping in the background, but the listing agent remains at his post.
If you appreciate this information, please give me thumbs up , even if you dont like what is happening with the agents.
Muriel Levin, Broker - Realtor
HAFA certified,Certified Negotiator, Short Sale and Foreclosure Resources Specialist.
Votre agence immobiliere de confiance sur Los Angeles et toute la rÃ©gion de la Californie du Sud
Agent Immobilier Francophone a Los Angeles, Hollywood,Santa Monica and Beverly Hills .
Residence, income properties and commercial leases
Muriel Levin @ gmail.com