Home Buying in 80206>Question Details

Jj, Home Buyer in 80206

signed a transaction broker contract in October for a specific property. Subsequently signed with a buyer broker for different properties. Problem??

Asked by Jj, 80206 Tue Jan 17, 2012

Now I want to go back to the original property..... Who gets the commission......Am I responsible to both?

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My only problem here is that, in Colorado, there is no such thing as a "Transaction Broker" contract. That being said, the agent you first saw the first home with could have a claim for the commission on the sale, as the "Procuring Cause" for the sale.

If you signed a specific "Buyer Agency Agreement" with a different agent for specific properties, you need to review what the specifics of this agreement entail. Again, we don't know what this contract states, so it would be tough to help advise you here.

If I were in your shoes, I would talk to both agents and be honest with them both. I would ask them both to see if there's a way to work things out so that you can achieve your goals of buying your next home. If one is willing to waive his/her claim on the commission, or if they're both willing to work out the commission between themselves, I would make sure you get the information in writing. Who knows, the agents might be best of friends, and might be happy to work it out.

Remember, Realtors have an ethical obligation to work in their clients' best interest. I wish you the best of luck with this!

Sean
1 vote Thank Flag Link Tue Jan 17, 2012
The short of it is if you are under a property specific agency agreement with one agent and you buy the property with a different agent both agents are due a commission.
1 vote Thank Flag Link Tue Jan 17, 2012
If the first agency relationship has expired and you are not purchasing a property that the previous agent showed you, you are fine. If you go back to the first property with a new agent and it is within your holdover period (see your buyer agency agreement with the first agent), you could owe the first agent commission.
1 vote Thank Flag Link Tue Jan 17, 2012
You only have three safe choices if you want to return to the original property: (1) Assuming that the buyer agency contract you signed is really limited only to other properties, you could probably go back to the first agent who you signed a transaction broker agreement (which as you know DO exist in Colorado) with and saw the property with. If you continue to work with this agent as a TB however, they are prohibited from representing your interests...which is a pretty stupid position to put yourself in. (2) If you'd rather work with the second agent...or a third...under a buyer agency agreement...you could negotiate with both as to how the commission might be split...but you need to get everyone to sign off in writing on that. (3) Pay an attorney for several hours of help to work your way through this. Honestly, that probably the only truly safe route for you. And if you take it, make sure they specialize in residential real estate...or you'll end up paying for them to learn the ropes.
0 votes Thank Flag Link Wed Jan 18, 2012
Jj,

Since you signed a 'Transaction Broker' contract for a specific property it would normally be no problem depending on the precise language and provisions of the contract. There may be a problem with you going back to the original property now with a different agent. This may be addressed in the contract. The other issue is the expiration date of the contract and what additional provisions may have been made for this particular property if you did go back to it. I would suggest you have a sit down with a real estate attorney to make sure that you are clear on what to expect. This is another good example of many good reasons why a buyer needs a to have a solid Buyer Broker Agreement with one agent teamed up with you and looking out for your best interests. I hope it all works out.

Robert McGuire ASR
Realtor/Consultant
Your Castle Real Estate
1776 S. Jackson St. #412
Denver CO 80210
Direct – 303-669-1246
0 votes Thank Flag Link Tue Jan 17, 2012
You need to read and understand both contracts you signed. There may be language specific and without having that knowledge none of us her can advise you correctly.

You have an agency formed, use that agency and broker to assist you with the documents you signed.

All the best to you.
Web Reference: http://www.terrivellios.com
0 votes Thank Flag Link Tue Jan 17, 2012
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