Home Buying in Atlanta>Question Details

Brandy, Home Buyer in Atlanta, GA

Agent Terminated The Services

Asked by Brandy, Atlanta, GA Tue Mar 31, 2009

My agent has decided to terminate his services with me because I want to go with the subdivision lenders and not whom he wants to go with. Will I still have to pay for the services he provided even though he terminated the services? I have also requested from him a letter in writing terminating the services.

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The angel on my shoulder says that the agent may have noticed junk fees or some arrangement between lender/developer that cost you money. They might have been trying to get you to work with an independent lender that in the end would be less expensive and easier to deal with.

The devil on my shoulder says that maybe the agent was getting a kickback - whoops....incentive - from a lender he was pushing or maybe he was part of the lending company and selling/financing the deal. As skeevy as that is, it's still strange to walk away from a deal

I will say that most development lenders and developers have some agenda...nothing is as it seems.

Hank
0 votes Thank Flag Link Thu Apr 2, 2009
Because an agent can only give clients names of lenders they can "recommend" and it is up to the buyer to choose the lender they want to use, I can only guess that your agent has had or heard something negative about the subdivision lender, or and this would be bad he/she was trying to steer you to someone else.
I suggest you definatly contact the agents broker and get some explination because if your agent had really been working for you they should have been more upfront with you to the best of their ability to do so.
0 votes Thank Flag Link Wed Apr 1, 2009
Brandy - I am a broker and have had experience with these types of commission issues. The amount of the commission that may be owed will determine how you would be sued by the agent. If it's $15k or under it would be taken up in small claims court, this is where my experience comes into play. If you have signed and executed purchase and sale agreement a commission may be due to the agent. If you never got that far in the process I don't think you can be liable. Commission is due when an executed contract is binding and/or a closing has taken place. Since the agent terminated the agreement (depending on what the agreement said) I would think you would be released from liability.
0 votes Thank Flag Link Wed Apr 1, 2009
Brandy,

If the agent terminated your agreement over that then the agent sounds like an idiot and he/she probably did you a favor.

Get the termination in writing and I would be glad to assist you if needed.
0 votes Thank Flag Link Wed Apr 1, 2009
Brandy,
My old daddy used to say, there are 3 parts to a story, yours, theres and the real one. All those answers are correct, but this is really weird. I can not understand why this would make a difference to the agent, unless the agent has some prior knowledge of the lender and feels that iit is not in your best interest to use them. Or the agent is working for the lender that they wanted you to use. In Georgia, we can be loan officers as well as Realtors, as long as we disclose to the client and state so on the contract. Who knows, but would like to hear the whole story!!! If it were me I would be talking to your agents broker!!!!
Best of luck
Dave Caplin
Keller Williams Realty
0 votes Thank Flag Link Wed Apr 1, 2009
Brandy,

We get the picture there is much more to this story. Have you contacted his broker? He/she would be able to answer your questions.
0 votes Thank Flag Link Wed Apr 1, 2009
Without knowing more information, I would say that agent has earned there commission and you will still be obligated to pay there commission, It appears they helped you find a house and wrote a contract and you are deceding on the lender to use, all that is fine.
The old saying regarding an agent earns there commssion when they bring that buyer through the threshold of the house and they buy.
Im sure that agent and broker will want there commssion, you need to contact the broker and get the facts.
0 votes Thank Flag Link Wed Apr 1, 2009
I'll be your agent. That is very strange. I'm sure there is way more to this story than we are seeing because that just doesn't make sense. Agents get paid regardless of what lender you would use and a sale is a sale and in these times it seems very odd an agent would walk away from working with a buyer. And you did say you were buying in a new subdivision as well. Like Deryk said, since agents aren't lawyers, we can not give legal advice, and, since your agreement isn't yet terminated, we can't give advice about your broker relationship still in place. I would contact his/her broker which your agreement is ultimately with and I would bet the broker would not be happy to lose you as a client. If the relationship is terminated and you want someone to represent you and your interests in dealing with the subdivision you have every right to have an agent and be represented. We are all curious to how this one works out. Keep us informed.

Sincerely,
David Brower, Assistant Manager/Realtor
Crye-Leike Realtors
678-982-9600
david@davidwbrower.com
Web Reference: http://davidwbrower.com
0 votes Thank Flag Link Wed Apr 1, 2009
Wow that is crazy I know from an agent's perspective I like to have my clients working with someone I am familiar with so that we can be constantly informed on the status as over 90% of all escrows that fall out are from the lender failing to perform. It's an issue I am currently experiencing, everything should be in writing and hopefully the agent gets something to you soon, best of luck!
0 votes Thank Flag Link Tue Mar 31, 2009
Hi Brandy,
That is an unusual question. Did the agent give you any reason why he thought you should not use the subdivsion lender? It seems strange to me that he would want to terminate your agreement over something like that.
Lynn is right. You should check your Buyer's Agency Agreement that you signed and I would further recommend that you contact a Georgia real estate attorney with your questions, since they are the experts on contract law and we, as Realtors, cannot give you legal advice. Best of luck.
Regards,
Deryk
0 votes Thank Flag Link Tue Mar 31, 2009
No Real Estate Agent can determine who you can use to obtain a mortgage...PERIOD! I would fervently say that any court of law would throw any lawsuit that agent might bring right out the door.
Web Reference: http://donne1.hotretech.com
0 votes Thank Flag Link Tue Mar 31, 2009
Why would an agent care what lender you used? Agents dont get paid on lender or only real estate. Your buyers rep. agreement governs what client and agent obligations are .

Lynn911
~ National Featured Realtor and Consultant, Lecturer regarding Credit Repair, Mortgage Loan Officer
Web Reference: http://www.lynn911.com
0 votes Thank Flag Link Tue Mar 31, 2009
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