Home Buying in 02145>Question Details

medialindsay…, Both Buyer and Seller in Cambridge, MA

On a second viewing.... Who gets the deal? The agent who showed it to me first? or do I ask the realtor i have been working with most currently?

Asked by medialindsay@gmail.com, Cambridge, MA Wed Mar 13, 2013

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12
Nobody unless you get an accepted offer and go to closing.

As to which agent will get compensated it could be both and you could be liable.

As Scott asked did you have a buyer agent agreement with the first agent? Do you have a buyer agency agreement with the second agent?

If the answer is yes I had one with the 1st agent and they did not break the chain of events then they will be considered the procurring cause and if you made the offer and had a buyer agency agreement with the second agent depending on the language in the agreement you could be liable to pay their fee as well.

If you did not have a buyer agency agreement with the 1st agent and they did not break the chain of events they still could be considered the procurring cause, but they would have to go thru arbitration with the other agent and depending on your contract with your new agent you could still be liable.

If you had or did not have a buyer agency contract with the 1st agent and they broke the chain of events, ie: did not stay in touch with you, did not inform you of a price drop etc, then the second agent would be the procurring cause.

Best to read your contracts with either agent and see what if any your exposure could be, if any, and if your still unsure hopefully your agent can answer it for you.

Good luck

Louis
1 vote Thank Flag Link Wed Mar 13, 2013
Well, why did you switch??? how long ago did you did you switch??? did you go back for second look already?? Why?? because the current agent presented to property to you??? does the current agent know another agent showed you the property previously???? did you .......?

any many other questions.

let the current agent know the situation.
0 votes Thank Flag Link Sat Jun 15, 2013
the best answer in this situation to me would be to tell the agent that you are working with now and they will assist you from there since I do not know all the particulars.
0 votes Thank Flag Link Sat Jun 15, 2013
Not fully understanding the entire chain of events, that becomes a very complicated issue.

James spelled out procuring cause very nicely. Its complicated and can be quite grey.....

With that said, I am sometimes in that awkward position both on the selling and buying side.

The best possible scenario, is for the brokers to work it out ahead of time. As a selling agent my job is to sell the home for my seller, so I typically will not prevent a sale over paying a commission. As I buyers agent I usually call the selling agent and work out the details with them so there will be no question after the fact.
0 votes Thank Flag Link Sat Jun 15, 2013
Hi, that's a great question though it is not easy to answer since I don't know the whole story, but I will try. First I have a couple of questions for you: Has the agent that you are currently working with at all? If not, is the plan to ask that agent to show it to you? Are you asking because you have a preference as to which one gets the commission? I am asking because the outcome involves something known as Procurring Cause which is a complicated issue and the outcome is not always predictable.

What is a Procuring Cause? (From Black's Law Dictionary)

The effort that brings about the desired result or the licensee who clearly originated a chain of events that resulted in a sale or lease within a timely manner. When more than one real estate broker or salesperson from different firms work with the same potential buyer, regarding the same property, the Seller, Landlord and Listing Broker expect to pay a single commission. Regardless of the efforts expended, only one of the brokers or salespersons whose efforts brought about the transaction may claim the commission.

"Procuring Cause. The proximate cause; the cause originating a series of events, which, without break in their continuity, result in the accomplishment of the prime object. The inducing cause; the direct or proximate cause. Substantially synonymous with "efficient cause."

A broker will be regarded as the "procuring cause" of a sale, so as to be entitled to commission, if his or her efforts are the foundation on which the negotiations resulting from the sale are begun. A cause originating a series of events which without break in their continuity result in accomplishment of prime objective of the employment of the procure who is producing a purchaser ready, willing and able to buy real estate on the owner's terms.

Bottom line: If the agents cannot agree on who gets the commission it could lead to Mediation or Arbitration. In the fture you should just stick with one agent, provided you are happy with them of course. For more info check the link below to Mass.gov.

Best,
James
0 votes Thank Flag Link Thu Mar 28, 2013
As you can see this is a complicated issue. Along the same lines as which came first the chicken or the egg. You didn't really give alot of specific details to make a judgement and those details will be the determining factor.

1. Did you have a written contract with the 1st agent, what capacity were they working with you.

2. Do you have anything in writing or had sufficient time elapsed to terminate the relationship with the first agent

3. What if any negotiating, planning etc. were discussed or arraigned between you and the first agent specifically in regards to the property.

4. The same questions would apply for the 2nd agent you've been working with.

This is why it's best to work with a contract with your buyers agent. You know a length of term, conditions, rights and responsibilities laid out and agreed upon.

For a legal opinion you'll need to consul an attorney, real estate professionals are not qualified to give legal advice. You might want to bring this to the attention of the agent you're currently working with also to see how they handle these types of situations. They're not uncommon and do spring up from time to time. Sometimes offering a consolation payment will cover you if and/or when it comes up.

Hope that helps,
0 votes Thank Flag Link Wed Mar 13, 2013
In Florida, if you sign a showing agreement with an agent, you must use that agent to draft an offer on the property. I don't understand why you went to a second agent to see the property again and now concerned about who will you use to show you the property for a third time, Lord have mercy!!!
0 votes Thank Flag Link Wed Mar 13, 2013
Unless you have signed an exclusive agreement, you can work with any and as many agents as you like. I'm sure the agent you first saw the property with would appreciate knowing what they did wrong....

One could only guess why you saw the same property twice with two different agents. There is likely a very good reason.
0 votes Thank Flag Link Wed Mar 13, 2013
Did you stop working with the first one or any particular reason? did you speak to that agent and let him/her know that you were going to be working with another agent?. This is one of the reasons why Realtors and buyers should have a clear understanding as to the relationship. I think most agents would not work with a customer/client unless that was an exclusive relationship. This helps avoid future issues with customers/clients and other Realtors. Your answer may also be different if you signed a buyer agency agreement with any of them.
Web Reference: http://wenrealty.com
0 votes Thank Flag Link Wed Mar 13, 2013
Likely the second agent. If you broke the chain of events with the 1st agent you should be fine. Was the 1st agent the listing broker? Did you sign anything with that agent? If there is a dispute it will be between the brokers so just move forward with the agent you want to work with and let the brokers figure it out when the time comes.

I hope the second agent you choose is a buyer broker :)

Territory.com
Massachusetts #1 Broker for Buyer's
617 848 5407 x701
Web Reference: http://territory.com/
0 votes Thank Flag Link Wed Mar 13, 2013
The agent who showed you the home, assuming you weren't at an open house, would be considered "procuring cause" if you do buy the home and he or she could argue they are due a commission. The agent you are working with may, in fact, be obligated to pay the other a referral fee. I think all realtors would agree we don't like to step on each others toes as it creates issues. It is good practice for a Realtor to explain "buyer agency" to a buyer as well as to discuss why it is important to work with one agent with whom you have developed rapport and trust.
0 votes Thank Flag Link Wed Mar 13, 2013
Realtors have a high honor system; they will work it out between themselves.
Just give the name and phone # to your Agent, and he will take care of it.
0 votes Thank Flag Link Wed Mar 13, 2013
If you have an affinity with the person you are currently working with and would like to continue working with them, I would have them set up the showing and then have them call the other agent to what happened. I agree with Ron that most good agents will understand and work it out between themselves.
Flag Wed Mar 13, 2013
Yes, but which agent do I contact first to see the place again?
Flag Wed Mar 13, 2013
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