First, my story has to do with an experience with NACA. The particular office I dealt with is NOT the DC office.
I have dealt with NACA one time, as a broker and in the sale of my private home. The buyers (husband and wife) came to me and viewed the home. We spoke at length, I advised them that I was a licensed broker, the homeowner and that there was a clear conflict of interest in my objectives and their objectives. I advised them to retain an independent broker to represent their interest. They declined, signing a dual agent waiver and another form that I wrote up that clearly identified the conflict. They signed a buyerâ€™s agency agreement. They made an offer at full price (a few years back when the market was good) on a standard Realtors Offer to purchase, with standard contingencies on home inspections, termite inspections, ability to obtain financing, etc. I told them of several local loan officers and mortgage brokers they might consider contacting.
About a week later a lawyer associated with a NACA office began calling to discuss the contract - he was supposed to be one of their "preferred closing attorneys". Another realtor contacted me claiming to represent the buyers, be entitled to the commission, and trying to renegotiate the generous commission rate that I had posted on the MLS. Through the better part of the week, the lawyer called daily and lodged his repeated objections to the language of a standard realtorâ€™s association agreement to purchase. I advised the other realtor that she was not entitled to any commission and that I had an agreement in place that predated her agreement, she was not party to the transaction. The buyers called me and tried to convince me to let the other Realtor represent them stating that it was a condition of the NACA program to use a â€œNACA approved realtorâ€. I reminded them that we had discussed this at length BEFORE they signed anything and suggested that if it were a condition of their financing that they probably wanted to find other financing because I was not letting the late coming outside realtor in. The lawyer sent over a modified contract, which I immediately rejected as a post acceptance alteration of a binding contract and voided all contracts.
The buyers came to me concerned and said that the lawyer said that I could not do what I had done (void the contract). I responded that my actions were well within the law and their lawyer was wrong. The actions of the closing attorney were IN MY OPINION well outside his fiduciary responsibilities/obligations, that he was clearly representing one party over the other when his obligations are to execute a real estate transaction in accordance with the law. That a first year law student, not to mention a â€œnew Realtorâ€ with only 40 hours training knows that once a contract is signed, you do not start negotiating changes.
We got on the phone with the attorney and I told him the same thing I told them, adding that I will be glad to sell the home, under identical terms agreed to + a mutually agreed upon closing attorney (and you will not be it). Once signed, terms are NOT subject to renegotiation.
The home sold to another individual, three weeks later, at full price, under more favorable terms and without incident. My opinion of NACAâ€¦I do not think I need to summarize