Home Buying in Philadelphia>Question Details

Lorena Leona…, Home Buyer in Philadelphia, PA

i signed an exclusive buyer agency contract for a 6 month term, there is nothing filled in as far a what the

Asked by Lorena Leonardo, Philadelphia, PA Sat Jun 28, 2008

i entered into an exclusive buyer agency contract, i found the house i am interested . the contract does not state any way to cancel the contract at all; i have found another agent who wil help me get the property i want but the realtor i am in the contract with does not seem able to get the property as he is new and has no real experience. he also cant get me the financial assitance i need and he stated i would be able to put the minimal amount down and has not come through on that. the financing he arranged was promised at 6% and has been uped to 7 %. the almost no money down has turned into 16,000 down which makes the property unatainable to me. the properties he did select for me where nothing like what i was looking for or in my price range. he only showed us 2 places he found and sent me 2 emails. i found another agent who can get me the financing i need to purchase this home and the new agent can reach the seller as my current agent cannot i dont want to lose the house. HELP!!!

Help the community by answering this question:

Answers

11
I should also add that if you haven't taken the time to communicate your issues and expectations with your first agent, you should do so before trying to fire them. There's nothing wrong with being a new agent. We've all been new at something before. How else does one gain experience without having their first clients place some trust in them. Your first agent has the same database, and access to all of the same properties as your new agent. So, there's nothing the new agent can show you that the first agent can't. As far as the loan in concerned, that could be a different story. I'd encourage you to shop your loan around. Try a local mortgage broker, or your bank. My point is, don't fire your first agent yet unless you've already tried unsuccessfully to communicate the concerns that you're having with him/her.
3 votes Thank Flag Link Sat Jun 28, 2008
Dear Home buyer,
Sounds like you are in quite a pickle of a situation.
Your question is just one more example of how important it is to carefully select an agent with whom you will work. All agents are NOT created equal, and they certainly do not all have equal amount of experience, financial savvy and negotiating ability, just to name a few of their needed skills.
MAy I offer a few salient points to be considered in your situation-- which may be helpful to others as well?

1) Your contract is just that --a CONTRACT!.. Breaking the contract is both morally and legally wrong. Therefore I take issue with the answers that say it's no big deal, just ask to get let out of the contract.
2) You may have grounds to be released from that CONTRACT--that is an issue you will need to take up with the broker whom your agent works under. Even if the agent is new, the broker is not, and he/she is responsible for the agents whose licenses hang in their office ! (In PA a broker must have at least 3 years, and considerable actual experience, among other qualifications, to get a REAL ESTATE BROKERS license) Talk to them-- they will probably be very willing to get involved and help you .
3) Did you inform the second agent you referred to that you are under CONTRACT with another real estate agent? If so, then offering to 'help me to get the property I want' is not an ethical behavior, and you may want to consider whether that is really the agent you want to work with --when and if the original Buyers agency CONTRACT is no longer in place.

The bottom line is that the time to find out what qualifications an agent has is BEFORE you sign any CONTRACT, not after. Do what is the right thing-- it always pays off in the long run.
Just a thought.

Mim Heisey
2 votes Thank Flag Link Mon Jun 30, 2008
My advice would be to tell your first agent that you're unsatisfied with the level of service that he has provided to you up to now, and that you no longer want his representation. If you tell an agent this, they are usually ok with it and able to draft something showing that the relationship has been dissolved. There's really no point in fighting it. If the agent balks, simply state that if need be you won't buy a house until after the 6 months has expired, but you'd prefer to just dissolve the relationship now so that you don't have to wait. If they still balk, tell them that you'll have your new agent pay them a 25% referral fee to compensate them for the time they've invested so far (make sure your new agent is ok with that first). If they still balk, just reiterate that this will be their only opportunity to earn any kind of compensation from assisting you. If they don't take it, you'll simply wait out the 6 months and they'll get nothing. The whole waiting out the 6 months is a bluff of course, but it should not come to that point. If it does, feel free to call their broker. Brokers aren't spiteful, and will want what's best for the brokerage.
Regards,
Bryce Greenfield
Re/Max In Motion
2 votes Thank Flag Link Sat Jun 28, 2008
The first thing you should do, and your best bet is to speak with the broker in charge of the agent you're currently working with.

Explain the situation to them and ask to be either 1) taken care of properly and to your satisfaction or 2) let out of your current buyer agency agreement.

If the broker declines to let you out of your Buyer Agency Agreement, your best bet will be to contact a local Real Estate Attorney for advise. Your situation is spelled out in your contract with the broker you're currently working with, but only a lawyer is qualified to interpret that contract for you. The couple hundred dollars you spend on the lawyer will be well worth it in the long-run - and will also serve to give you peace of mind that you are moving forward on the right path (invaluable when considering all the other stressors involved in purchasing a home!)

Based on what you wrote about your situation, it may very well get sticky - but the lawyer should clear everything up for you.

If there's anything else I can do to be of assistance, please don't hesitate to contact me at http://www.HernandoLuxuryHomes.com - I'm happy to help!

Thanks,

-Josh
2 votes Thank Flag Link Sat Jun 28, 2008
Your agreement is with the agency, not the individual agent. Contact the company he works for and ask to speak with the Broker of Record. That person is the one that should be able to help you. If not, you may be contact a residential real estate attorney to help you. Best of luck.
Web Reference: http://fredglick.com
1 vote Thank Flag Link Sat Jun 28, 2008
As a true exclusive buyer agent, I object to the misleading title of an agreement that renders the BUYER exclusively BOUND to that agent. You would do better to find an agent who is bound to represent ONLY buyers, to avoid conflicts of interest. That is called an exclusive buyer agent and that agreement will benefit YOU.
0 votes Thank Flag Link Thu Jan 19, 2012
You are legally locked into using your current agent unless you can get them to nullify the Exclusive Buyer Agency Agreement.

A word of wisdom to all - NEVER enter into an Exclusive Buyer Agency Agreement. If you enter into an agreement with a realtor, make sure that it is a Non-Exclusive Buyer Agency Agreement.
0 votes Thank Flag Link Wed Jul 23, 2008
It would seem that the agency that you've engaged has not fullfilled the requirements of their buyer agency provided in the contract. Approach it from that direction, and if you can't get cooperation, talk with a lawyer.
Buyer agency, in most areas, can be accomplished WITHOUT a contract.
Next time around, don't sign it. Let the real estate agent that completed a successful closing for you earn your business without these invisible "handcuffs", receiving compensation based on the closing, not the possibility of a closing. Just an opinion.
Web Reference: http://optionsrealty.com
0 votes Thank Flag Link Sun Jul 20, 2008
a written request to be released from the buyer agency contract would be the place to start. If that doesn't work, contact the broker. It doesn't have to be a big deal.
Web Reference: http://www.950mode.com
0 votes Thank Flag Link Sat Jul 19, 2008
i just came across your posting...I understand your situation. There are programs that can help you own a home with very little out of your pocket, they are not very well known but they are available. if you still need help please contact me, i am sure I can find a solution for your dilemma.

Dennis Strange
Keller Williams Real Estate
267 767 8558
0 votes Thank Flag Link Mon Jul 14, 2008
Just to clarify...according to the NAR Code fo Ethics, if the customer (i.e. Lorena) initiated the contact with the 2nd agent, the 2nd agent absolutely can continue to help the customer even after finding out that the customer is already under contract.

As a REALTOR, you should not SOLICIT the business of another agent, but if the customer comes to YOU it's a completely different story and you can (and probably should) help the customer in whatever way possible.

"3) Did you inform the second agent you referred to that you are under CONTRACT with another real estate agent? If so, then offering to 'help me to get the property I want' is not an ethical behavior, and you may want to consider whether that is really the agent you want to work with --when and if the original Buyers agency CONTRACT is no longer in place."
0 votes Thank Flag Link Mon Jun 30, 2008
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer