Selling agent refuses to submit offer unless I pay them 3% buyer fee

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Selling agent refuses to submit offer unless I pay them 3% buyer fee

Chris Dee
Member since 2021 · 28 posts · 12 votes

Hi All,

I contacted the seller agent for a property I found on Zillow. The selling broker sent a buyer agent to show the property. I assumed this was the way they handle dual agency.  I made an offer and they verbally got it accepted by seller. When it was time to send me the buy sell agreement they tried to sneak in an Exclusive Buyer Agent agreement that commits us to pay them 3% buyer fee for any house in the state  that we buy for 6 months. I was shocked because I repeatedly told them we don't want them as our buyer agents. I said it was fine to be buyer agent on this specific property because we were dealing with a dual agency situation. When I told them we won't pay buyer fee they ignored our emails and never sent docs to sign for the offer that the seller already verbally confirmed.  I was emailing directly with the broker and I know this behavior is broker approved and mandated. So, I know what they did is unethical and they are required to submit all offers.  However, did they break the law? Also, what should I do from this point forward? I know who the sellers are and can contact them directly?

Thank you much,

Christina 

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Russell BrazilBusiness Member
Moderator
Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
3y
Quote from @Chris Dee:

Hi All,

I contacted the seller agent for a property I found on Zillow. The selling broker sent a buyer agent to show the property. I assumed this was the way they handle dual agency.  I made an offer and they verbally got it accepted by seller. When it was time to send me the buy sell agreement they tried to sneak in an Exclusive Buyer Agent agreement that commits us to pay them 3% buyer fee for any house in the state  that we buy for 6 months. I was shocked because I repeatedly told them we don't want them as our buyer agents. I said it was fine to be buyer agent on this specific property because we were dealing with a dual agency situation. When I told them we won't pay buyer fee they ignored our emails and never sent docs to sign for the offer that the seller already verbally confirmed.  I was emailing directly with the broker and I know this behavior is broker approved and mandated. So, I know what they did is unethical and they are required to submit all offers.  However, did they break the law? Also, what should I do from this point forward? I know who the sellers are and can contact them directly?

Thank you much,

Christina 


 They are not obligated to represent you. It isnt slavery. You're free to hire or not hire any agent you want, and any agent is free to work with you, or not work with you of you dont pay their fees. They dont work for free. 

So you can hire an agent that costs less of you want, has different representation terms....or you dont have to hire anyone and can represent yourself.

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  • Abel CurielBusiness Member
    Real Estate Agent · Queens, NY · Member since 2016 · 2k+ posts · 1k+ votes
    3y

    Hello @Chris Dee,

    I would contact the local MLS board and make a complaint.

    Since it was listed on zillow, you should be able to see which MLS they are part of.

    Not sure how far this can go without there being an executed contract but the MLS' compliance/rules enforcement dept. should be able to look further into this.

    If you have anything in writing from the seller's agent or seller agreeing to accept the offer or something similar, that will be helpful. Your logs and paper trail of unanswered emails/messages/calls will help as well.

    Hope it all works out in your favor!!

    Abel

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  • Chris Dee
    OP
    Member since 2021 · 28 posts · 12 votes
    3y

    Thank you Abel, I have everything in writing. Will look up the MLS they are under. What about the State Real Estate regulatory body? Do they care?

    0Reply
  • Abel CurielBusiness Member
    Real Estate Agent · Queens, NY · Member since 2016 · 2k+ posts · 1k+ votes
    3y
    Quote from @Chris Dee:

    Thank you Abel, I have everything in writing. Will look up the MLS they are under. What about the State Real Estate regulatory body? Do they care?


    They might recommend going to the MLS board first but it doesn't hurt to try!

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  • Chris Dee
    OP
    Member since 2021 · 28 posts · 12 votes
    3y

    Thank you, Abel!

    0Reply
  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    3y
    Quote from @Chris Dee:

    Hi All,

    I contacted the seller agent for a property I found on Zillow. The selling broker sent a buyer agent to show the property. I assumed this was the way they handle dual agency.  I made an offer and they verbally got it accepted by seller. When it was time to send me the buy sell agreement they tried to sneak in an Exclusive Buyer Agent agreement that commits us to pay them 3% buyer fee for any house in the state  that we buy for 6 months. I was shocked because I repeatedly told them we don't want them as our buyer agents. I said it was fine to be buyer agent on this specific property because we were dealing with a dual agency situation. When I told them we won't pay buyer fee they ignored our emails and never sent docs to sign for the offer that the seller already verbally confirmed.  I was emailing directly with the broker and I know this behavior is broker approved and mandated. So, I know what they did is unethical and they are required to submit all offers.  However, did they break the law? Also, what should I do from this point forward? I know who the sellers are and can contact them directly?

    Thank you much,

    Christina 


     They are not obligated to represent you. It isnt slavery. You're free to hire or not hire any agent you want, and any agent is free to work with you, or not work with you of you dont pay their fees. They dont work for free. 

    So you can hire an agent that costs less of you want, has different representation terms....or you dont have to hire anyone and can represent yourself.

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  • Edward Dean
    Real Estate Agent · San Diego · Member since 2019 · 91 posts · 52 votes
    3y

    Have you checked that the 'broker' you were speaking with was the highest person up the chain? If it is a big brokerage they may have a manager (single office or team level), then general manager (franchise/regional/several office level), and a broker of record (person with the most responsibility). If it is a major brokerage, you can usually find a directory online of higher-ups to push the problem up to. If not, then yes, start reaching out to whoever runs their MLS. Also, like Russell said, you can hire your own buyer's agent. They may be able to get a quicker response from this seller's agent.

    Best of luck with it!

    1Reply
  • Nathan Brown
    Property Manager · Phoenix, AZ · Member since 2023 · 101 posts · 77 votes
    3y

    If you're not a licensed agent--I get the sense you're not based on your questions--then you aren't bound by the same code of ethics which prohibit realtors from going around each other directly to the seller. By all means, if you don't want to be represented, then there's a form they can have you sign acknowledging as much. As for ethics, we don't know what the broker's listing agreement says about any requirements to present offers. Sometimes, they don't actually have to present them. In any event, the local MLS board (or whatever it's called in your jurisdiction) will definitely be able to apply appropriate pressure to act swiftly.
    Make sure you request in writing the seller's acceptance or denial of said offer. Verbal isn't enough.

    0Reply
  • Account Closed
    Real Estate Agent · Los Angeles, CA · Member since 2020 · 39 posts · 10 votes
    3y
    Quote from @Chris Dee:

    Hi All,

    I contacted the seller agent for a property I found on Zillow. The selling broker sent a buyer agent to show the property. I assumed this was the way they handle dual agency.  I made an offer and they verbally got it accepted by seller. When it was time to send me the buy sell agreement they tried to sneak in an Exclusive Buyer Agent agreement that commits us to pay them 3% buyer fee for any house in the state  that we buy for 6 months. I was shocked because I repeatedly told them we don't want them as our buyer agents. I said it was fine to be buyer agent on this specific property because we were dealing with a dual agency situation. When I told them we won't pay buyer fee they ignored our emails and never sent docs to sign for the offer that the seller already verbally confirmed.  I was emailing directly with the broker and I know this behavior is broker approved and mandated. So, I know what they did is unethical and they are required to submit all offers.  However, did they break the law? Also, what should I do from this point forward? I know who the sellers are and can contact them directly?

    Thank you much,

    Christina 


     Hey Christina, I'm an Agent here in Los Angeles

    I know a TON of listing agents that refuse to work with buyers period. Which is fair because buyers oftentimes don't like to sign exclusive agreements so agents end up working for free when showing buyers homes etc. This agent is more than likely just making sure that they get paid if they do any work representing a buyer (in this case you). It may feel unfair, but they are well within their right to structure their business that way. 

    Truth be told, a verbal offer holds no value. You can't open escrow on a verbal offer alone. And even though the Agent may be "required" to tell the seller about your offer, they are not "required" to represent you and assist you in preparing the required documentation. 

    Reporting this to the MLS/Board will be a waste of time. My advice is to literally call any agent that is local to your area and tell them you would like to submit an offer on a property. I'm sure there will be a long line of agents willing to help you get this across the finish line.

    If you were local to California, i'd type up your offer for you in seconds lol 

    Best of luck! 

    3Reply
  • Wayne Brooks
    Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    3y

    @Chris Dee I’m guessing the document the agent wanted you to sign didn’t say you would pay them 3%…it likely said that they will work for 3% and if the listing offers Less than 3% to the buyer agent, you would pay the Difference.

    As@Russell Brazil mentioned, while all offers received by a listing must be presented, no agent is required to Write that offer for you, if you don’t agree to their compensation terms.

    You are free to, and it is advised, to find a buyer agent of your Own choosing, and have them write the offer.

    4Reply
  • Nathan FaseltBusiness Member
    Rental Property Investor · Iowa City, IA · Member since 2019 · 94 posts · 35 votes
    3y

    As many here have mentioned 

    Defiantly talk to the seller, highest up manager at the brokerage and or franchise, local Realtors association if that are apart of that, if not report to state sales association. 

    thats very frustrating. 

    0Reply
  • Carlos Ptriawan
    Member since 2019 · 7k+ posts · 4k+ votes
    3y
    Quote from @Wayne Brooks:

    @Chris Dee I’m guessing the document the agent wanted you to sign didn’t say you would pay them 3%…it likely said that they will work for 3% and if the listing offers Less than 3% to the buyer agent, you would pay the Difference.

    As@Russell Brazil mentioned, while all offers received by a listing must be presented, no agent is required to Write that offer for you, if you don’t agree to their compensation terms.

    You are free to, and it is advised, to find a buyer agent of your Own choosing, and have them write the offer.


     I guess so too in this scenario.

    0Reply
  • Jonathan R McLaughlin
    Rental Property Investor · Boston, Massachusetts (MA) · Member since 2016 · 2k+ posts · 2k+ votes
    3y

    X out the offending line, replace with “agreement for this property only” initial and send back. Pretty sure You got a boilerplate document. Done this a fair amount and no one blinked. They ensure they get paid, you get the offer submitted

    4Reply
  • Jessie Dillon
    Investor · Hopedale, MA · Member since 2021 · 321 posts · 212 votes
    3y

    complain to the broker so they know what's going on & just never work with those people again. maybe post in local investor groups so that others are warned, then move on. 

    0Reply
  • Steve K.
    Realtor · Boulder, CO · Member since 2016 · 3k+ posts · 5k+ votes
    3y

    Sounds like they sent you a standard buyer's agency agreement, required for you to work with the buyer's agent who showed you the property and had their standard language in there. A lot of listing agents, if not most, don't want to work with unrepresented buyers or act as a dual agent which is actually illegal in some states, and high risk in terms of being sued in others (it's hard to avoid having a conflict of interest when already working with the seller). There's already a 3% buyer's agent fee baked into the listing, you can either have the agent who showed you the property represent you, which is probably what you should do at this point since they showed you the property and they could claim "procuring cause" (although they may not have actually established procuring cause technically, but that's a different topic, and they probably think they did). If you only want to work with them on this transaction, ask them to change the language in the BAA to reflect that. Or you can write the offer yourself and send it to the listing agent and ask to be unrepresented. This is how going direct to the listing agent can make things messy. Sometimes it works, other times not so much.   

    2Reply
  • Dan DiFilippoBusiness Member
    Real Estate Broker · Fayetteville, NC · Member since 2020 · 251 posts · 244 votes
    3y

    @Chris Dee

    So presuming your state works the way mine does, and I expect it would. I understand this element of agency law is pretty typical.

    You can't force him to write an offer for you. He's not obligated. In fact, he *can't* submit an offer for you because you won't sign his agreement.

    He showed you the house already. Agents *can* show houses without a signed agreement. But the reason they might not is that it gives them less protection in terms of being able to guarantee themselves any compensation for the work they're doing showing homes. But this agent did show you the home without a written agreement.

    Unfortunately for you, an agreement beforehand would have done more to protect *you*. Because now the agent is your procuring cause in the purchase, should you go on to buy that particular house. They'd have a strong claim for compensation.

    Something else you should consider here is that it's possible you read the contract incorrectly. Most contracts state something to the effe t of "compensation due to agent shall be_____________" and then they have filled in "3% of final sales price" or whatever their number is. And you read that part of the contract and think that it means you owe that money. If you read through the remainder of the compensation section, however,it says that the agent will first seek that amount from the listing agent or seller. In this case, a number like 3% is what the contract states, you *are* ultimately responsible for it, but won't have to worry about paying it so long as the listing offers a sufficient commission to cover it.

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  • Chris Dee
    OP
    Member since 2021 · 28 posts · 12 votes
    3y
    Quote from @Russell Brazil:
    Quote from @Chris Dee:

    Hi All,

    I contacted the seller agent for a property I found on Zillow. The selling broker sent a buyer agent to show the property. I assumed this was the way they handle dual agency.  I made an offer and they verbally got it accepted by seller. When it was time to send me the buy sell agreement they tried to sneak in an Exclusive Buyer Agent agreement that commits us to pay them 3% buyer fee for any house in the state  that we buy for 6 months. I was shocked because I repeatedly told them we don't want them as our buyer agents. I said it was fine to be buyer agent on this specific property because we were dealing with a dual agency situation. When I told them we won't pay buyer fee they ignored our emails and never sent docs to sign for the offer that the seller already verbally confirmed.  I was emailing directly with the broker and I know this behavior is broker approved and mandated. So, I know what they did is unethical and they are required to submit all offers.  However, did they break the law? Also, what should I do from this point forward? I know who the sellers are and can contact them directly?

    Thank you much,

    Christina 


     They are not obligated to represent you. It isnt slavery. You're free to hire or not hire any agent you want, and any agent is free to work with you, or not work with you of you dont pay their fees. They dont work for free. 

    So you can hire an agent that costs less of you want, has different representation terms....or you dont have to hire anyone and can represent yourself.


     I didn't want any representation that is why I called the selling agent directly.  In my area seller agents are elated to work with buyers directly because they don't do commission split. He sent one of his teammates who then tried to establish herself as my buyer agent. After repeatedly telling her I wasn't interested (through email), she slipped in an exclusive buyer agreement into my offer, for 6 months for the all real estate in my state on and off MLS. That is not Ok on so many levels. BTW, as a seller agent they are required to give all offers to seller, unless specified in their agreement. I sent my offer through email with all of the terms and the seller agreed through email.  Since they aren't splitting the seller commission the least they can do is fill out docs (even though I can do that).  However, what has happened is that they want the the seller commission of 7% plus trying to scam an additional 3% and and exclusive buyer deal in order to be able to purchase this property.  Remember, my offer was accepted by the seller through email. So, the seller agent purposely destroyed the deal (by refusing the send buy sell agreement) because I won't commit to 6 months of exclusive buyer agreement (for the the entire state for 6 months). If I were the seller and knew about this, I would sue and win.

    0Reply
  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    3y
    Quote from @Chris Dee:
    Quote from @Russell Brazil:
    Quote from @Chris Dee:

    Hi All,

    I contacted the seller agent for a property I found on Zillow. The selling broker sent a buyer agent to show the property. I assumed this was the way they handle dual agency.  I made an offer and they verbally got it accepted by seller. When it was time to send me the buy sell agreement they tried to sneak in an Exclusive Buyer Agent agreement that commits us to pay them 3% buyer fee for any house in the state  that we buy for 6 months. I was shocked because I repeatedly told them we don't want them as our buyer agents. I said it was fine to be buyer agent on this specific property because we were dealing with a dual agency situation. When I told them we won't pay buyer fee they ignored our emails and never sent docs to sign for the offer that the seller already verbally confirmed.  I was emailing directly with the broker and I know this behavior is broker approved and mandated. So, I know what they did is unethical and they are required to submit all offers.  However, did they break the law? Also, what should I do from this point forward? I know who the sellers are and can contact them directly?

    Thank you much,

    Christina 


     They are not obligated to represent you. It isnt slavery. You're free to hire or not hire any agent you want, and any agent is free to work with you, or not work with you of you dont pay their fees. They dont work for free. 

    So you can hire an agent that costs less of you want, has different representation terms....or you dont have to hire anyone and can represent yourself.


     I didn't want any representation that is why I called the selling agent directly.  In my area seller agents are elated to work with buyers directly because they don't do commission split. He sent one of his teammates who then tried to establish herself as my buyer agent. After repeatedly telling her I wasn't interested (through email), she slipped in an exclusive buyer agreement into my offer, for 6 months for the all real estate in my state on and off MLS. That is not Ok on so many levels. BTW, as a seller agent they are required to give all offers to seller, unless specified in their agreement. I sent my offer through email with all of the terms and the seller agreed through email.  Since they aren't splitting the seller commission the least they can do is fill out docs (even though I can do that).  However, what has happened is that they want the the seller commission of 7% plus trying to scam an additional 3% and and exclusive buyer deal in order to be able to purchase this property.  Remember, my offer was accepted by the seller through email. So, the seller agent purposely destroyed the deal (by refusing the send buy sell agreement) because I won't commit to 6 months of exclusive buyer agreement (for the the entire state for 6 months). If I were the seller and knew about this, I would sue and win.

    Again no one is obligated to represent just because you want them to. No one is obligated to write up an offer for you. The agent doesnt have to engage in dual agency just because you demand that they do. I never engage in dual agency under any circumstances.

    50% of E&O claims Are from dual agency situations and the other 50% are from situations where the agent is a principal.

    You are free to write up your own offer, or hire someone to write up your offer. No one is required to be your slave just because you want to enter a dual agent situation. You have 2 very easy paths forward to get your deal done, and it sounds like you're choosing not to pursue either of those easily attainable paths.

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  • Marcus Auerbach
    Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
    3y
    Quote from @Chris Dee:
    Quote from @Russell Brazil:
    Quote from @Chris Dee:

    Hi All,

    I contacted the seller agent for a property I found on Zillow. The selling broker sent a buyer agent to show the property. I assumed this was the way they handle dual agency.  I made an offer and they verbally got it accepted by seller. When it was time to send me the buy sell agreement they tried to sneak in an Exclusive Buyer Agent agreement that commits us to pay them 3% buyer fee for any house in the state  that we buy for 6 months. I was shocked because I repeatedly told them we don't want them as our buyer agents. I said it was fine to be buyer agent on this specific property because we were dealing with a dual agency situation. When I told them we won't pay buyer fee they ignored our emails and never sent docs to sign for the offer that the seller already verbally confirmed.  I was emailing directly with the broker and I know this behavior is broker approved and mandated. So, I know what they did is unethical and they are required to submit all offers.  However, did they break the law? Also, what should I do from this point forward? I know who the sellers are and can contact them directly?

    Thank you much,

    Christina 


     They are not obligated to represent you. It isnt slavery. You're free to hire or not hire any agent you want, and any agent is free to work with you, or not work with you of you dont pay their fees. They dont work for free. 

    So you can hire an agent that costs less of you want, has different representation terms....or you dont have to hire anyone and can represent yourself.


     I didn't want any representation that is why I called the selling agent directly.  In my area seller agents are elated to work with buyers directly because they don't do commission split. He sent one of his teammates who then tried to establish herself as my buyer agent. After repeatedly telling her I wasn't interested (through email), she slipped in an exclusive buyer agreement into my offer, for 6 months for the all real estate in my state on and off MLS. That is not Ok on so many levels. BTW, as a seller agent they are required to give all offers to seller, unless specified in their agreement. I sent my offer through email with all of the terms and the seller agreed through email.  Since they aren't splitting the seller commission the least they can do is fill out docs (even though I can do that).  However, what has happened is that they want the the seller commission of 7% plus trying to scam an additional 3% and and exclusive buyer deal in order to be able to purchase this property.  Remember, my offer was accepted by the seller through email. So, the seller agent purposely destroyed the deal (by refusing the send buy sell agreement) because I won't commit to 6 months of exclusive buyer agreement (for the the entire state for 6 months). If I were the seller and knew about this, I would sue and win.

    They don't want to work with you, and frankly based on what I read here, good for them! You sound like you just want to make this confrontational any way you can.

    Even if the listing agreement stated 7%, that is not public information, so you would not know. What makes you think there is no comission split? Also, I don't think you understand the buyer agency agreement correctly: it will state 3%, but MLS regulates (based on the listing contract) how much the seller is paying and that is usually 3%.

    You may be dealing with an unprofessional agent, but don't waste your time complaining to MLS and brokers (that is really unproductive advice here..), just find an agent to your likings (hopefully they like you) and submit your offer. It's really that simple.

    0Reply
  • Kevin Sobilo
    Realtor · Hanover Twp, PA · Member since 2018 · 3k+ posts · 3k+ votes
    3y

    @Chris Dee, I think this is much ado about nothing tbh.

    I suspect this is a misunderstanding. It sounds like you are ok if they represent you for this property but not on any future properties. MANY buyers agents are used to using an "Exclusive" Buyer Agency agreement that locks you in for a period of time to that agent. That may be all this agent is familiar with and could even be their office's default policy to use.

    However, in my state, we have another contract available a "NON-Exclusive" Buyer Agency contract which basically says if I am the procuring cause of the sale for example I show you the house etc then you are obligated to work through me as your agent. The agent may just not be familiar with using this type of agreement, but this sounds like what you want.

    So, speak to them and/or their broker or even the listing agent. I suspect this is just a lack of communication.

    Also, ask about the 3%. I suspect that is covered by the seller's commission UNLESS the seller is offering less for example if the seller is only offering 2.5% to the buyer's agent then you would be obligated for the difference of 0.5%. I suspect that is what that's about. 

    Talk to them and ask these sorts of questions and I hope it gets sorted out. 

    1Reply
  • Chris Dee
    OP
    Member since 2021 · 28 posts · 12 votes
    3y
    Quote from @Edward Dean:

    Have you checked that the 'broker' you were speaking with was the highest person up the chain? If it is a big brokerage they may have a manager (single office or team level), then general manager (franchise/regional/several office level), and a broker of record (person with the most responsibility). If it is a major brokerage, you can usually find a directory online of higher-ups to push the problem up to. If not, then yes, start reaching out to whoever runs their MLS. Also, like Russell said, you can hire your own buyer's agent. They may be able to get a quicker response from this seller's agent.

    Best of luck with it!

    Thank you Edward. Indeed I just contacted the team lead. They are under REMAX so I will look higher up!

    0Reply
  • Chris Dee
    OP
    Member since 2021 · 28 posts · 12 votes
    3y
    Quote from @Nathan Brown:

    If you're not a licensed agent--I get the sense you're not based on your questions--then you aren't bound by the same code of ethics which prohibit realtors from going around each other directly to the seller. By all means, if you don't want to be represented, then there's a form they can have you sign acknowledging as much. As for ethics, we don't know what the broker's listing agreement says about any requirements to present offers. Sometimes, they don't actually have to present them. In any event, the local MLS board (or whatever it's called in your jurisdiction) will definitely be able to apply appropriate pressure to act swiftly.
    Make sure you request in writing the seller's acceptance or denial of said offer. Verbal isn't enough.


     Thank you Nathan! You are correct they clearly structure their agreements to benefit them and there might be clause in the seller agreement that says they won't present all offers. I saw other reviews for the firm that says they try to show properties to "preferred" agents and withhold offers from sellers. So, there is definitely something going on.  Do you know the name of the form that says I don't want to be represented?  BTW, I have all the offer acceptance communication in email. 

    0Reply
  • Chris Dee
    OP
    Member since 2021 · 28 posts · 12 votes
    3y
    Quote from @Kevin Sobilo:

    @Chris Dee, I think this is much ado about nothing tbh.

    I suspect this is a misunderstanding. It sounds like you are ok if they represent you for this property but not on any future properties. MANY buyers agents are used to using an "Exclusive" Buyer Agency agreement that locks you in for a period of time to that agent. That may be all this agent is familiar with and could even be their office's default policy to use.

    However, in my state, we have another contract available a "NON-Exclusive" Buyer Agency contract which basically says if I am the procuring cause of the sale for example I show you the house etc then you are obligated to work through me as your agent. The agent may just not be familiar with using this type of agreement, but this sounds like what you want.

    So, speak to them and/or their broker or even the listing agent. I suspect this is just a lack of communication.

    Also, ask about the 3%. I suspect that is covered by the seller's commission UNLESS the seller is offering less for example if the seller is only offering 2.5% to the buyer's agent then you would be obligated for the difference of 0.5%. I suspect that is what that's about. 

    Talk to them and ask these sorts of questions and I hope it gets sorted out. 


     Thank you Kevin. Ah, you would think this would be a miss-understanding. However, I know it's not. I have worked with a few buyer agents in the area and they always write the exclusive buyer agreement for the specific property in question. Some, I have agreed to work with for a few months and signed an exclusive for that period. So, everyone knows what's up here. I was very clear in multiple emails that I wasn't interested in ongoing relationship, I asked them to replace "All real estate in state XX" with "123 Main st. etc." That is when they started ignoring my emails. They are waiting for a sucker to sign the exclusive without realizing it. 

    About the 3%, yes it says that it will be offset by the commission share. However, I don't trust this broker to tell me at closing that "Surprise, there is no commission share for where is our 3%." I need things to be clean and clear.

    1Reply
  • Chris Dee
    OP
    Member since 2021 · 28 posts · 12 votes
    3y
    Quote from @Dan DiFilippo:

    @Chris Dee

    So presuming your state works the way mine does, and I expect it would. I understand this element of agency law is pretty typical.

    You can't force him to write an offer for you. He's not obligated. In fact, he *can't* submit an offer for you because you won't sign his agreement.

    He showed you the house already. Agents *can* show houses without a signed agreement. But the reason they might not is that it gives them less protection in terms of being able to guarantee themselves any compensation for the work they're doing showing homes. But this agent did show you the home without a written agreement.

    Unfortunately for you, an agreement beforehand would have done more to protect *you*. Because now the agent is your procuring cause in the purchase, should you go on to buy that particular house. They'd have a strong claim for compensation.

    Something else you should consider here is that it's possible you read the contract incorrectly. Most contracts state something to the effe t of "compensation due to agent shall be_____________" and then they have filled in "3% of final sales price" or whatever their number is. And you read that part of the contract and think that it means you owe that money. If you read through the remainder of the compensation section, however,it says that the agent will first seek that amount from the listing agent or seller. In this case, a number like 3% is what the contract states, you *are* ultimately responsible for it, but won't have to worry about paying it so long as the listing offers a sufficient commission to cover it.


     I never asked for a buyer agent and called the seller agent directly. They sent a teammate and created a procuring cause. I am fine signing an exclusive buyer agreement for that specific house. Even signing this agreement will never protect me as is stated in the "Dual-Agency" doc. The "buyer agent" will not provide any negotiation advice etc etc because they are under the same broker. I get zero value with this buyer agent. Nevertheless, I am fine to sign the agreement for that specific house. When I asked to do that, they started ignoring my emails.  I do understand the 3%, but I don't trust them not to change the commission split come closing time, sticking me with the 3 %. BTW, I wrote my offer and the offer got accepted by the buyer. The broker is refusing to let me sign the buy sell agreement.

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  • Chris Dee
    OP
    Member since 2021 · 28 posts · 12 votes
    3y
    Quote from @Steve K.:

    Sounds like they sent you a standard buyer's agency agreement, required for you to work with the buyer's agent who showed you the property and had their standard language in there. A lot of listing agents, if not most, don't want to work with unrepresented buyers or act as a dual agent which is actually illegal in some states, and high risk in terms of being sued in others (it's hard to avoid having a conflict of interest when already working with the seller). There's already a 3% buyer's agent fee baked into the listing, you can either have the agent who showed you the property represent you, which is probably what you should do at this point since they showed you the property and they could claim "procuring cause" (although they may not have actually established procuring cause technically, but that's a different topic, and they probably think they did). If you only want to work with them on this transaction, ask them to change the language in the BAA to reflect that. Or you can write the offer yourself and send it to the listing agent and ask to be unrepresented. This is how going direct to the listing agent can make things messy. Sometimes it works, other times not so much.   

    Thank you Steve! In my state dual agency is legal. I did ask them to change the agreement to just cover this property and they ignored my emails. I did write the offer myself and got it accepted through email by the seller. The problem is that the broker won't let me sign the buy sell agreement without committing to them for 6 months for all properties in my state.
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  • Chris Dee
    OP
    Member since 2021 · 28 posts · 12 votes
    3y
    Quote from @Account Closed:
    Quote from @Chris Dee:

    Hi All,

    I contacted the seller agent for a property I found on Zillow. The selling broker sent a buyer agent to show the property. I assumed this was the way they handle dual agency.  I made an offer and they verbally got it accepted by seller. When it was time to send me the buy sell agreement they tried to sneak in an Exclusive Buyer Agent agreement that commits us to pay them 3% buyer fee for any house in the state  that we buy for 6 months. I was shocked because I repeatedly told them we don't want them as our buyer agents. I said it was fine to be buyer agent on this specific property because we were dealing with a dual agency situation. When I told them we won't pay buyer fee they ignored our emails and never sent docs to sign for the offer that the seller already verbally confirmed.  I was emailing directly with the broker and I know this behavior is broker approved and mandated. So, I know what they did is unethical and they are required to submit all offers.  However, did they break the law? Also, what should I do from this point forward? I know who the sellers are and can contact them directly?

    Thank you much,

    Christina 


     Hey Christina, I'm an Agent here in Los Angeles

    I know a TON of listing agents that refuse to work with buyers period. Which is fair because buyers oftentimes don't like to sign exclusive agreements so agents end up working for free when showing buyers homes etc. This agent is more than likely just making sure that they get paid if they do any work representing a buyer (in this case you). It may feel unfair, but they are well within their right to structure their business that way. 

    Truth be told, a verbal offer holds no value. You can't open escrow on a verbal offer alone. And even though the Agent may be "required" to tell the seller about your offer, they are not "required" to represent you and assist you in preparing the required documentation. 

    Reporting this to the MLS/Board will be a waste of time. My advice is to literally call any agent that is local to your area and tell them you would like to submit an offer on a property. I'm sure there will be a long line of agents willing to help you get this across the finish line.

    If you were local to California, i'd type up your offer for you in seconds lol 

    Best of luck! 


    Thank you Segun! Hi to LA :) I was local to Cali and will be again in the future. So, will definitely think of you if we will buy anything in the LA area! So, in my area going to listing agent is just fine and they will all work with buyers directly. I am fine to sign an exclusive for this one property and the broker wants 6 months exclusive for the entire state. I sent the offer and got an acceptance from seller through email (not verbal). I don't think I can go to another agent for this specific property because the first buyer agent created a procuring cause. Thank you again for your thoughts!

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