Real Estate Laws vary from state to state but it sounds like Agent #2 will owe Agent #1 a part of the commission of maybe all of the commission. Involve both brokers from the agent's real estate companies and let them hash it out. But remember when signing a buyers representation agreement or any document its always a good idea to understand all the terms of the agreement. But don't beat yourself up about it because this stuff happens all the time.

We have a similair situation, we stopped by an open house and found that the home was beautiful and within our price range, the agent told us we needed to sign a buyer's agent paper so he could disclose all the pertinant information on the home to us instead of complete loyalty to the seller. We signed the form and later that day I pulled up as much information on the home as possible and found out the property taxes were extrememly high and way out of our price range. I emailed the agent and thanked him for his time but that we would not be able to move forward on the house.

A month later we put our house on the market with an agent we chose, we also found a home builder to use for our new home, we had just turned in the contract giving our selling realtor information as our agent as she assisted us in the contracts and THEN we get a phone call from agent #1 from the old house who stated he has exclusive rights to any home we purchase for 6 months and we can not use our realtor we chose for buying the new home?

I am now very stressed out, what can we do?

K

I was in a similar situation a while back. i showed the house,but buyers decided to have family friend write up the offer. Second agent(family friend) was upfront with me and offered a very fair referral fee. I was fine with this. later on another agent turned up who had also been working with these people & felt she was entitled to something because she had referred them to the lender they were using. This is why you DO NOT agent shop! i have also had the experience of someone requesting that I show a house--they had already seen the house with 2 other agents--their method of selecting an agent was to have each agent show them the same property!

if you buy one of those three homes that you saw with agent #1, your father in law may owe a portion of his commission to that agent.

Partly due to procuring cause (the agent was the first agent to show you the property), but more so because of professional courtesy. Agent #1 didn't do anything wrong... but at the same time, all he did was show you the property. He's not going to help you write up the offer, negotiate the offer, negotiate the inspection.. and on, and on... so he's not really entitled to FULL commission...

but common sense says your f-i-l should send him at least a "showing fee" or a small "referral fee" for his time. And if your father in law is a decent realtor... he'll agree that agent #1 is due something.

'procuring cause' is more than just 'showing the house'... it's an unbroken chain of events that leads to the sale of the house. His chain is about to be broken, through no fault of his own.

Nurse,

Andy is here again. Let me say something related to Steven's point.

First, I am not a attorney so I do not have right to discuss the posibility that whether the first agent will sue you or not. If he will not, then we donot need to talk here. Let us talk about it based on he would.

Intention, intention, intention, did you have any intention to cheat him? Did you mislead him that you will not use the agent you had before. Did you get any benefit from the first agent and ask your second agent to give you a discount because he donot need to do it again?

Real estate transaction must be in writing but real estate service may not be in writing.

What I say here is based on CA and may apply in CA only. And I am a real state person only I am not an attorney.

Andy

Nurse,
One thing that you and every agent should consider is "Procuring Cause"!
A broker is 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 negotiations resulting in a sale begin.
"Procuring cause" may be defined as a series of events, unbroken in their continuity, that result in the desired objective
Then we have Arbitration:
Every arbitration hearing is considered in light of all of the relevant facts and
circumstances as presented by the parties and their witnesses. "Rules of thumb,"
prior decisions by other panels in other matters, and other predeterminants are to be disregarded.
Procuring cause shall be the primary determining factor in entitlement to
compensation. Agency relationships, in and of themselves, do not determine
entitlement to compensation. The agency relationship with the client and entitlement to compensation are separate issues. A relationship with the client, or lack of one, should only be considered in accordance with the guidelines established to assist panel members in determining procuring cause.
Bottom line: Using another agent to achieve your goal or even beginning the process can cause major problems for everyone!

Thanks 4 such an overwhelming response! The story is my father-in-law was temporarily out of real estate when the 1st person showed us the house. He didnt cart us around to a bunch of houses...3 actually, with in close walking distance of each other. He was a nice guy, but now my father-in-law is back in real estate & thats my daughter's grandfather, so obviously I want to help him out for family reasons... they spend a ton on my dgtr! Thanks 4 your answers...we may just get a completely different house all together =)

If you did not sign a buyer's agency agreement with that agent, then you don't owe that agent anything.

If you saw one house with that agent, and they just weren't a perfect fit for you and your family (personality didn't mesh, etc), and you found another agent you liked in the meantime and wanted to see that same house again, it's understandable. I've had buyers hire me as their buyer's agent after seeing other homes with other agents simply because they felt that I understood their needs, was going to work hard for them, communicate well with them, etc.

The problem I have is buyers that see 5, 10, 20 houses with one agent, and the agent spends hours upon hours with them showing them houses, driving them around, doing all the research, and then the buyer disappears. Now if you have seen a ton of houses with that agent, but still haven't signed anything, then legally that agent isn't entitled to anything for their work. Is it ethical...no. But, it's done all the time.

Feel free to ask any more questions. Thanks and have a great day!

Adelina Rotar
Realty Executives Associates
865-693-3232
865-603-8483
Adelina@AdelinaRotar.com

You really need to consult with an agent in TN. This varies from state to state. What i told you applies in louisiana--what Andy told you aplies in CA--Neither of us is in TN!

Hi everyone,

Second agent does not owe commission to the first one. Selling agent has to complete two duties to claim commission. First is presenting the property and dealing behalf the buyer. Second is complete the contract. If selling agent has only done the first part, he/she has no right to claim the commission. If he/she has only done the second part, he/she may have part of the commission. The commission is paid by seller with the condition that all the parties involved the transaction such as buyer, lender and agents should acknowledge and accepte.

The first agent has no right to claim any compansision but if he/she has showed the property and let the seller or the listing agent know that then he/she is a selling agent too. Remember, agent means presenting someone to the third party no matter whether he/she has agency relationship disclosure, any kind of buyer’s agency agreements or receiving money.

If anything happened after COE, the first agent may be liable too. That is why I always tell my agents to send a cancelation notice to the shopping buyers.

What I say here is based on CA and may apply in CA only.

Andy

Dear Nurse,
Is there some reason why you do not want to go with the first agent you worked with? Even though you might not have a legal obligation, I believe there is a moral one. At least let the first agent know the reason you are not satisfied with their services before you start to work with someone else. I think that's only fair.

I think that since the first agent showed them the same house she may have grounds for procuring cause. not sure how it works in TN but it is definitely an issue in Louisiana. It is possible that the first agent is entitled to a share of the commission. of course you are free to change agents but you need to inform the second agent that another agent has shown you the house--second agent may not want to get involved under these cricumstances.

While it typically is a good idea to stick with one agent, unless you are commited to the first agent via a signed buyer's agent agreement, you are free to use any agent you like. The first agent is not entitled to anything if there was no contract between you and them at any time.

Tina Evans, Broker

The second agent iwill probably owe commission to the agent who showed you the house first,but this does not really affect you. The commission is paid by the seller. you need to be up front with the second agent & dsiclose that another agent showed you the house first .