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12-04-2012 09:54 AM
I had a realtor whom i was working with. I have not signed Buyer's agent agreement. Our relationship was very limited to an extent of me searching the house on redfin or zipreality and send it to him and he used to work with the seller agent and make an arrangement for us to look at the house based on my likeing he use to submit the offer. I came across one property which I liked and wanted to see. I went and saw the property as the owner of the house was very co-operative. Later i came to know that he did not work with the seller agent or the house owner to show the house neither he was present to show the house which i accidently went and looked at. I liked the property and told him to put an offer on the house. The offer was rejected. I happened to talk to another realtor and asked him if he can help me in getting the property and he worked with me on this and we closed the deal. My 1st realtor knew about this and he is threating to sue me for the commission. What is that I need to do? Am I really entitled to pay him the commission.
12-04-2012 11:03 AM - edited 12-04-2012 11:04 AM
You owe him nothing. If he wants to, he can sue the realtor that got you the house but I don't see how he could prevail. The commission comes from the sale, not from the buyer. No one should ever sign a buyer's agent agreement. There is just no reason to do it. I worked with 4 or 5 different agents last year when i bought my home. Are they all entitled to a commission?
12-06-2012 11:53 AM
It could have something to do with the timing.
I assumed that OP submitted another offer with 2nd realtor after 1st offer was rejected. How was this 'reject' communicated to buyer from agent (typically by words of a phone call)?
If offer dates and expiration dates of agency representation are clearly shown in contracts, then I don't see a lawsuit possibility here.
I am not sure and realtors in the forum may tell me if agency representation/ relationship is confined to be just one offer for one property.
Unless a court package is delivered to you by certified passenger, you have no case. Guys threaten others all the time, get use to it.
12-08-2012 12:01 PM
Your old agent may have a prevailing cause argument against your new agent, but that is between the two of them. Its a shame he is bringing you into a commission dispute - its not your responsibility to pay any agents, period. The sellers pays his agent out of your proceeds, and the sellers agent splits the commission with your agent as they agree to by participating in the MLS. Your ex-agent does not have a claim against you and any lawsuit would be thrown out by a judge. If anything, he could try to work out a referral fee agreement with your new agent, or take him to court as a last resort. But really, he would be wise to just drop it.
12-14-2012 10:28 AM
There are two issues here.
1) The absence of a Buyer Broker Agreement
2) An agents disupute over procuring cause and the commission that was paid.
Realtor 1 has to prove that he was the procuring cause for your finding the home. I'm no real estate lawyer but I understand that to mean that without him/her you would not have found/seen/bought that particular house. It doesn't sound like that was the case. Procuring cause is a very difficult issue between agents and one that you as the buyer should not be involved in. Agents have their own internal process for deliberating this situation.
Without a Buyer Broker Agmt it would be difficult for Realtor 1 to sue you for a commission.
Hope that helps,
Julie Stadel, Broker