Home Buying in Los Angeles>Question Details

bellpsalm91, Home Buyer in Nokomis, FL

Should I sign a document from my realtor stating that I will pay mediation expenses when my realtor is at fault?

Asked by bellpsalm91, Nokomis, FL Wed Aug 28, 2013

I entered a contract that was contingent on home inspection. After finding out the home needed a roof, I informed my agent that I wanted the seller to contribute.
I did not get a response from the seller. A week later I put a contract on a different home that my agent showed me.
I was then informed by my agent that my 1000. earnest money (on the house that needed a roof) was not being released.
My agent admitted he made a mistake by not canceling the contract. He said he would pay me the 1000. earnest money if I sign that it goes to him when and if it is released. He wants me to sign that I will pay mediation costs, if it comes to that. I do not feel that this is my responsibility since it was his mistake. Please advise...
Thank you!

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Answers

9
If it was me, I wouldn't sign something like that if he was at fault. Seek legal counsel.
1 vote Thank Flag Link Wed Aug 28, 2013
Glad to hear that your Realtor® made it right for you!
0 votes Thank Flag Link Sat Aug 31, 2013
Update:

My realtor paid the 1000.00. I gave him a receipt for the money but did not sign anything else.

I told him that I would be happy to go to mediation in hopes to get his money back, but, I am not paying anything towards it.

Thanks for all of your wonderful advise! It was very helpful...

I did not feel right about signing anything and your advise was confirmation that I shouldn't.
0 votes Thank Flag Link Fri Aug 30, 2013
Are you sure that's what it says. Usually mediation payment is determined by the mediator.

J.R. Thrasher
http://www.SanDiegoRealEstateVeterans.com
(619)929-0105
0 votes Thank Flag Link Fri Aug 30, 2013
As all the agents have advised, before me, contact a real estate attorney, ASAP, and the agents manager/broker is it is not the same.

Most C.A.R. offers have safeguards and contingencies for buyers, and sellers, regarding inspection periods. Unless you released in writting any of these contingencies, there is no legal reason for the buyer to not release your earnest money.

From any experienced realtor's view, it would seem as a no-brainer, but because we do not know the details of your specific contract, we can not give legal advice.
0 votes Thank Flag Link Wed Aug 28, 2013
Hi, thanks for your reply. Unfortunately I do not have time to seek legal advise. We are scheduled to settle on the 2nd home tomorrow. I need the 1000.00 earnest money that my agent said he would pay if I sign.
I did not sign any release from the inspection contingency.
My realtor said that he sent the request to the seller for them to contribute towards the new roof. We then did not hear back from them and were looking at other properties.
I feel as though my realtor should have known the correct way to present my requests...
Any suggestions?
Flag Thu Aug 29, 2013
This does not sound right to me either. You may want to speak with your agent's broker of record and also a real estate attorney. In California, All contingencies, ie: inspection contingency, should be responded to with a request for repairs, and contingencies should not be removed until repairs are negotiated and agreed upon. If the seller does not agree to any repairs or credits, then you have the right within your contingency period to cancel the contract.

Sounds like your agent does not know what they are doing. What state is this purchase occurring in? Every state handles real estate transactions differently.

Good luck!
0 votes Thank Flag Link Wed Aug 28, 2013
It is in Florida. My agents business card says that he is a broker. When the sellers agent would not release the earnest $ my agent called the legal hotline for realtors and was told that he should have cancelled the contract. That is when he said he would pay the $1000. I'm not sure why he thinks I should pay legal expenses. It's a very awkward situation to be in!
Flag Wed Aug 28, 2013
Doesn't sound right to me, and if your agent admitted culpability why would you pay expenses. Talk to an RE atty.
0 votes Thank Flag Link Wed Aug 28, 2013
It makes no sense. Ask for recommendations for attorneys from locals in your area.
Flag Thu Aug 29, 2013
That is what I am wondering. Why would he expect me to pay the expenses!
Thank you for your comments!!
Flag Wed Aug 28, 2013
Seek legal counsel. It doesn't sound right...if your agent is admitting he was at fault...you should not be signing anything.
0 votes Thank Flag Link Wed Aug 28, 2013
I understand him wanting me to sign that he would get the earnest money after it is released since he is giving me the 1000. to settle on the 2nd house.
Do you think that I should not sign this?
Flag Wed Aug 28, 2013
Legal Advice is something non of us Brokers/Agents are allowed to give. You need to seek out legal advice by a real estate attorney.
0 votes Thank Flag Link Wed Aug 28, 2013
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