Home Buying in 80906>Question Details

southernlola, Home Buyer in Colorado Springs, CO

visited a condo withagent.seller showed us second condo. want to make private offer. No buyers contract and agent didnt set up appt for second condo.

Asked by southernlola, Colorado Springs, CO Wed Jan 23, 2013

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Brian L. A. Wess’ answer
Greetings

This is a complex question that relies on many different things.

First off it's important to note that Real Estate Licensees in Colorado (Brokers) are prohibited from providing legal advice unless they are also an Attorney and there is a difference between a Realtor, who is a member of the National Association of Realtors...bound by the Realtor Code of Ethics...and someone who is just a Real Estate License holder.

Since this question was asked in Colorado Springs, I'm assuming that this is a Colorado Real Estate Transaction which would fall under the auspices of the Colorado Real Estate Commission. If it is, all Colorado Real Estate License holders who are not also an attorney or a builder with attorney drafted contracts must use the standard state contract forms promulgated by the Colorado Real Estate Commission.

Some questions that determine how this can be answered include:
1. Is the Seller Represented by a Broker and if so do they have an Exclusive Agency Contract and if so are there any stipulations for actions the seller might take without the Broker being involved?

2. Is the Buyer Represented by a broker (Yes in this case) and if so do they have an Exclusive Agency Contract and if so are there any stipulations for actions the buyer might take without the Broker being involved?

If you as the Buyer have a Colorado Exclusive Right to Buy Contract (BC60-8-10) (Mandatory 1-11) with the broker assisting you who helped set up the first showing, you may want to read that agreement over closely and consult an attorney before attempting to go around your broker.

According to the Colorado Colorado Exclusive Right to Buy Contract (BC60-8-10) (Mandatory 1-11) Available at http://www.dora.state.co.us/real-estate/index.htm under Forms & Contracts:

Section 7. COMPENSATION TO BROKERAGE FIRM. In consideration of the services to be performed by Broker, Brokerage Firm shall be paid as set forth in this section, WITH NO DISCOUNT OR ALLOWANCE FOR ANY EFFORTS MADE BY THE BUYER OR ANY OTHER PERSON. (Emphasis Added)

Section 9. BUYER’S OBLIGATIONS TO BROKER. Buyer agrees to conduct all negotiations for the Property only through Broker, and to refer to Broker all communications received in any form from real estate brokers, PROSPECTIVE SELLERS, OR ANY OTHER SOURCE during the Term of this Buyer Listing Contract. Buyer represents that Buyer Is/Is Not currently a party to any agreement with any other broker to represent or assist Buyer in the location or purchase of property. (Emphasis Added)

While I feel this question is a sad statement of how far our society has fallen when people search for ways to not honor the time and expertise a professional has put into assisting them, I hope this information is of use.

Brian L. A. Wess
Realtor®, Broker Owner
CRS, CDPE, GRI, ABR, ASR, CSR, CNS, SFR, e-PRO
Military Relocation, Residential & Investment Specialist
Infinite Horizons Realty - Metro Brokers
Colorado Springs, CO
COLORADO REAL ESTATE...DONE RIGHT!â„¢
0 votes Thank Flag Link Wed Jan 23, 2013
WHY!? What does it cost you to have representation? Who is paying your agent? Do you like to work for free? Do you want to hire a attorney instead? What is the benefit for you? NONE!
0 votes Thank Flag Link Wed Jan 23, 2013
The easy answer is no you can not. If you do not have an agent working for you then you have to work with the listing agent. The seller is going to pay the agent no matter who is helping you. Are you planning on paying the agent for their time that showed you the condo if you buy it with someone else?
Valerie
0 votes Thank Flag Link Wed Jan 23, 2013
Hi there,

Buyers often have a misconception that they can reduce the price by the buyers side commission by not using a buyers agent, but the seller has already agreed to pay for both sides and the listing agent will get both regardless of whether or not you have your own agent. If a listing agent showed you the second unit, you will essentially be paying that agent both sides of the commission for only representing the seller. If that listing agent elects to change status to be a transaction broker (there is no dual agency status in Colorado), they will be doing the paperwork for both sides of the commission without representing anyone. Legally, they can't offer you any advice, but as they initially signed to represent the seller, they've already offered the seller plenty of advice before they switched from agent to transaction broker. You will be at a disadvantage!

If you are thinking of making a deal with a seller who also has no agent, you would both be well advised to hire attorneys to do the paperwork. Why not just use the realtor who has already spent time with you plus time preparing, researching, analyzing comparables, taking care of logistics to schedule showings, etc. Most agents are paid 100% by commission with NO base salary, no reimbursement of costs, no health insurance, no 401K, etc. Closing day is the only way an agent is compensated for their work.

If you feel that your agent has done his/her work - show them respect and don't cheat them out of a paycheck. If not, talk to that agent and see if you can resolve any issues you have before leaving him/her in the cold.
0 votes Thank Flag Link Wed Jan 23, 2013
Nola...This whole "private contract" thing you keep asking about is not a good idea, ESPECIALLY since you have an agent. If you want so badly to work without an agent, then WHY DID YOU GET ONE? If your agent is not serving you well, then let them know so they can do better. If you were just using them to simplify your search efforts, then keep them involved so they get compensated for that help. As I said in the other question you asked about this...you're not saving yourself any money, you're just cheating the agent by giving his share of the commission to the OTHER agent.
0 votes Thank Flag Link Wed Jan 23, 2013
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