Home Buying in Cicero>Question Details

Ana, Home Buyer in Chicago, IL

i was showed a home by a realtor, my intesntion was only to see the house. however, i no longer want to be

Asked by Ana, Chicago, IL Sat Nov 24, 2007

with this realtor. i have requested help from another realtor to buy the home i was showed before. who gets the comission.?( i never signed anything)

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A buyers right to representation by the agent of their choice is of top priority. However, buyers also have a responsibility to be honest, forthcoming and ethical in their dealings w/ Realtors. Buyers and sellers have every right to expect honesty and integrity from Realtors, and reciprocity is a reasonable expectation.

If you as a buyer went to see a property with an agent, and determined you were not comfortable having this agent represent you, by all means, change agents. Be honest with both agents and allow them to work out details regarding any sharing of commissions, referral, or showing fees. As a buyer, you are entitled to choose the agent who will represent you.

If, on the other hand, you knew at the time you requested that this agent showed you the property that you had no intention of having that Realtor represent you, and had a different agent in mind, why did you not have your Realtor of choice take you to see the property? It is Buyer Agent’s responsibility to show properties to their Buyer clients.

The guiding factors in procuring cause can become quite complicated and are frequently oversimplified in discussions, particularly as I have seen on Trulia.

Tell both Realtors who you want to represent you and let them work out the details. If you do know who you want to represent you, schedule your appts with and through that Realtor. Feel free to attend any open house with or without your Realtor. The open house representative is there to promote the property on behalf of the seller and has allocated his/her time on that day for that purpose. Visiting an open house does not alter your relationship w/ your Buyer Agent.
2 votes Thank Flag Link Sun Nov 25, 2007
Deborah Madey, Real Estate Pro in Red Bank, NJ
MVP'08
Contact
So....you wasted a Realtor's time that you had no intention of using...and you want to buy the home and make sure your Realtor gets paid? Where was your Realtor when you wanted to see the home? Does this situation even FEEL god to you? It doesn't to me. Good luck.
Web Reference: http://www.cindihagley.com
1 vote Thank Flag Link Sat Nov 24, 2007
Cindi Hagley,…, Real Estate Pro in San Ramon, CA
MVP'08
Contact
Ana,
You have the right to be represented by whoever you want until you sign a contract. Who gets paid should not be your concern. Just let the agent that is representing you know what's going on so they can make a business decision as to whether or not they want to be involved when they might not be entitled to the commission.
Michael
1 vote Thank Flag Link Sat Nov 24, 2007
The concensus appears to be that you viewed a home with the listing agent and were already using a buyers agent to look at other properties. This happens often with open houses since you may see something unexpectedly on your own.

It's a good idea to tell the agent working the open house you are working with another agent right away. They are usually happier with your honesty. Many agents ask whether you are woking with someone almost right away. Best to answer honestly which shows you respect their time.
0 votes Thank Flag Link Tue Nov 27, 2007
The concensus appears to be that you viewed a home with the listing agent and were already using a buyers agent to look at other properties. This happens often with open houses since you may see something unexpectedly on your own.

It's a good idea to tell the agent working the open house you are working with another agent right away. They are usually happier with your honesty. Many agents ask whether you are woking with someone almost right away. Best to answer honestly which shows you respect their time.
0 votes Thank Flag Link Tue Nov 27, 2007
Ana, it sounds like you either read an ad or saw a for sale sign and called the listing agent to show you the property, is this correct? Or do you entertain the services of a buyers agent to show you a property then discovered they were not the right agent for you? The first option can have very different outcome than the second option. Reality is the fight for the commission will be between the agents and not with you if did not sign a representation agreement stating that you would pay a commission. Which cautions you on signing an agreement with the new agent in the picture that you would now like to represent you because you could personally owe her a commission if she is not paid the commission or loses the commission in a procurring cause argument.

In the first option the listing agent wants to get the property sold and will most likely be understanding that you have chosen to use representation. Your new agent would need to confirm that the agent will honor her with a commission and not accuse her of parachuting to claim all the commission because she was the procurring cause meaning she is the reason you knew of the property and the person that showed you the property.

In the second option, you had a buyers agent show you a listed property and now you are wanting to purchase this property with another agent. Why the change? Are you not comfortable with the agent that showed you the property? How did it come about that this agent showed you this home. In this option, the agent that showed you the property is likely to be a little more upset than the agent in the first option because she stands to lose a commission all together when she is responsible for you knowing about the property and showing you the property. From your question, it sounds like that the first agent has stayed in constant contact with you and is expecting to represent you in your purchase.

Perhaps a win-win might be the way to go. Communicate with the agent that you want to represent you and ask her if she would be willing to offer a referral fee to the first agent. This might keep everyone happy and allow the first agent to move on to her next client.

A buyers brokerage agreement is between the buyer and the brokerage firm. Procurring cause is between agents. If you signed nothing then you owe nothing to the agent.
0 votes Thank Flag Link Sat Nov 24, 2007
Ana,

There are multiple factors involved in who should get the commission including (1) who showed it first (2) whether u signed anything (3) who wrote the factor and (4) continuity in the relationship.

I am currently involved in two separate transactions from 2 different angles.

First, I am in contract with a property that someone else showed first. However, the buyer was in constant communication with me while the other realtor continued to make contact but the buyer was not responsive. I have listed the buyers property for sale, received a contract and now have them in contract on another property that was shown by the listing realtor. She is not making any claim to the sale because although she showed the property first, I have clearly had an ongoing relationship with this buyer.

The other instance is a buyer who I schleped around to 20 - 30 condos, one of which we wrote an unsuccessful contract. Another realtor showed them 1 property, wrote a contract and closed the deal. The delay in our relationship was due to their wedding and subsequent honeymoon. The buyers claim "they didn't ask her to do this, she did it on her own (it was a family friend). Although I do not have any "signed" documents (as I too am a family friend), I am pursing this to the max.

So I guess what I am saying here is that continuity here is key along with the other factors.
0 votes Thank Flag Link Sat Nov 24, 2007
Hi Ana,
Why would you have "used" a Realtor you had no intention of working with? Do you realize that we are not
paid a salary, and, therefore, our time is precious? If you use one Realtor to do the legwork, and write the offer with another Realtor, I'm sure you can see how this is patently unfair. Now, to answer your question, if you do not want to work with a particular Realtor, you are not required to. I, for one, would not want to work with a client who didn't have faith in me! However, the first Realtor may have claim for "procuring cause", and the second Realtor may have to pay part or all of the commission to the first if an arbitrator determines that to be the case.
Please, buyers and sellers, be honest with agents! I expect Realtors to be honest with clients, and would request the same courtesy. If you want to work with the second Realtor, please tell him or her this situation, so that they will know the whole story and can make an informed decision on how to proceed.
0 votes Thank Flag Link Sat Nov 24, 2007
If you have never signed anything, you would be free to choose any agent you feel comfortable with to represent you. However, his does not prevent the other egent from making claims to the contrary. It is very common for agents making claims of procuring cause to have little knowlege of the true meaning of procuring cause and simply showing a property to a potential buyer is not enough to make this claim. Sometimes, much more has transpired behind the scenes and you may not be aware of and could effect the outcome of your question.
0 votes Thank Flag Link Sat Nov 24, 2007
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