Home Buying in 77380>Question Details

Lisa Herald, Real Estate Pro in 77380

In Texas when a realtor has an enforceable Buyer's Rep Agreement and the buyer purchases without the realtor,

Asked by Lisa Herald, 77380 Sat Dec 8, 2007

what would the best advise be? I have already sought the help of an attorney, but they are reluctant to do anything aggressive.

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12
I am sorry that you are experiencing this Lisa. It is never fun to be used and abused by a buyer.

There are unanswered questions...Did the buyer buy a home you showed them? Was this a listed property? Did they go directly to the seller or listing agent? Or did they hire another buyers agent?

The bottom line is that only your broker can choose to sue or not sue for commissions or damages. I would talk with your broker so that your broker can make the decision to fight for your commission or not fight. Your broker also have to agree with you placing a mechanics lien on the property. Most brokers do not like to sue consumers; however, some brokers will if there is blatant disrespect for the contract. I will tell you that it is time consuming to sue a client that even when you win in the end you do not win because of the time and energy it stole.

You may be able to simply send a letter of intent to sue which can open up communications for a possible settlement.

Best of Luck!
2 votes Thank Flag Link Sat Dec 8, 2007
You have a legal right to the commission that paid out on the transaction. If you did sue, you will win. Your reputation would be tarnished. Also, you broker is the one who has to sue. Not you unless you are the broker.

Did you asked them why they didn't use you? Make this a learning experience for you.

I wish you the best!
2 votes Thank Flag Link Sat Dec 8, 2007
do not show properties to buyers without a buyer rep signed and a advance fee ( non refundable retainer) WHAT EVER THAT MAY BE AND A SHEET THAT SPELLS OUT VERY CLEAR THAT MONEY IS NONREFUNDABLE AS (CLIENT SHALL PAY A NONREFUNDABLE RETAINER OF !@# AND RETAINER SHALL ONLY BE REFUNDED AT TIME OF CLOSING AFTER ALL BROKERS FEES HAVE BEEN PAID AND IF I/CLIENT CHOOSE NOT TO PURCHASE A PROPERTY THE RETAINER SHALL PAY FOR MY AGENTS (YOUR NAME) TIME AND EFFORTS I FULLY UNDERSTAND THIS AGREEMENT AND HAVE THEM SIGN. ) IF THEY DON'T SIGN DON'T WORK. STAND YOUR GROUND AND STOP BEING A TAXI TOUR GUIDE BUT THATS UP TO YOU ON HOW YOU WORK YOUR BUSINESS THIS IS JUST A SUGGESTION IF THIS AIN'T FOR YOU STOP COMPLAINING.
THIS WILL STOP AGENT ROTATION WITH YOUR CLIENT.
1 vote Thank Flag Link Wed Nov 5, 2008
Oh boy. I have to say my heart goes out to you.

I am still a "rookie" -- hence the title of my book -- and I have never had an unpaid sale.

I had an unpaid rental once that I pursued -- and the client who stiffed me never believed that he should have had to pay me. I never got paid.

Pursuing the payment wrecked my relationship with the person who had referred that client, who had previously been a good referrer.

That said, I was so angry about not getting paid that it didn't occur to me that I had any other choice BUT to pursue it -- this client had stolen my time, which is worth money, and I didn't want to be a doormat, you know?

So I would, as other posters advise, sit down with your sponsoring broker. Outline the situation, and try to figure out what the consequences are of pursuing this (it will take a lot of time and energy to collect a judgment) vs. the consequences of not pursuing this (you don't want your firm to have a rep of a firm that can be stiffed on payment).

I might also possibly consult with the local real estate board, because you pay your dues to get some advice and counsel in situations like this.

However it works out, try to compartmentalize and remember that this is one transaction out of many -- the fact that you have run into an unethical client who is treating you badly is one of the worst hassles of business, but it doesn't reflect on you.

Good luck!

Alison Rogers
author, "Diary of a Real Estate Rookie"
http://tinyurl.com/2ag28z
Web Reference: http://tinyurl.com/2ag28z
1 vote Thank Flag Link Mon Dec 10, 2007
LIsa, sometimes you have to learn to let things go. What happened was not right, but move on. With the energy and effort it would require to pursue this, you could make several more sales.
1 vote Thank Flag Link Mon Dec 10, 2007
It really depends on where you are in the process. If they have closed, write a congratulations card to the buyer and ask them for a referral or better yet several referrals. Take them a small closing gift. Keep in contact with them. I think most of the time they just didn't understand the process. If they did understand the process and have had a less than stellar experience without you, they will now understand your value and ensure they and their friends use you in the future. Even though it is difficult to do they may become a great customer in the future. Nearly every day in these forums we see the results of buyers who bought without representation and now are in a bad situation that would have likely been avoided by using even the worst of realtors, much less the best. If they haven't closed, your speak with your broker. You may be able to split the commission with the selling broker if you were the procuring cause of the sale and had not abandoned the buyer.
Web Reference: http://www.teamlynn.com
1 vote Thank Flag Link Sat Dec 8, 2007
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
Contact
Unfortunately this has happened to most of us that have been in the business any length of time..One of the "downfalls" of the trade!

I understand from some other agents(in the past) you can take them to small claims court; however I believe if your license is hung w/an office or broker, you will have to follow what they tell you..
0 votes Thank Flag Link Thu May 7, 2009
You have only one option when a buyer choses to purchase a home without an agent and you have an executed buyer rep agreement. It is clearly spelled out within the verbiage of the agreement itself.

Bottom line: the Buyer is obligated to pay you the commission you outlined in your written agreement.

However, it is not likely that you will ever be able to enforce that legality.

Your only defense for your commission is to impress on the buyers the value you bring to the transaction and be very selective about what buyers deserve your time. You might still get burned (it has happened to me once in 3 decades) - but getting a buyer's clarity about your value is the only thing you can do. Beyond that, you suffer the consequences with buyers that do not honor your value.
0 votes Thank Flag Link Wed Oct 22, 2008
Buyers Reprentation Agreements are to keep the agents from doing a lot of work for nothing and having another agent step in. Any complaints shoud be Broker/ agent to Broker/agent not to the Buyer.

We can not force buyers to do business with us. We can compel our fellow Realtors to not take advantage of us. If there is a commission dispute and if your Broker thinks the two of you deserve it go to the Board.
Since this question I certainly hope every one is dealing with a Realtor and not just an agent.

We are not Attorneys as We all keep saying.
But as far as I am concerned one reason I still live in Texas is that I can not sign away my rights.
No one can force me as a the consumer.

The Attorneys are reluctant because enforceable is the question.
0 votes Thank Flag Link Tue May 13, 2008
So sorry that it happened to you and I truly hope that somehow things will work out.
I am in Massachusettsa and not familiar with Texas laws, I could not give you much of a advice.But hang in there, do what you feel is right, if you spent hours dragging them arround to see every property in their price range, and it will be worth your time and effort, than fight for your compensation. Nothing is for free.
0 votes Thank Flag Link Mon Dec 10, 2007
p.s. of course, your broker would have to do this... not you
0 votes Thank Flag Link Sat Dec 8, 2007
If it hasn't closed or funded yet... get a CDA with a copy of the buyer's rep agreement to the title company that is closing the deal. They cannot close as long as there is a claim on it.

If it already closed... file a mechanic's lien.
0 votes Thank Flag Link Sat Dec 8, 2007
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