Agent scammed us at the auction

Atlanta, Georgia
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Agent scammed us at the auction

Basu G.
Marietta, GA · Member since 2017 · 23 posts · 2 votes

We have had many people laugh at us when we told about this. 

We had an agent who would send us some properties he thought were good buys from listings on FMLS. He accompanied us to the auction on 11/07. At the auction he said he has registered as a sellers agent and would charge us 5% commission.  This should tell us we are novice folks and trust people easy. Any how we didn't buy anything from the list of properties that were from auction.com. We ended up purchasing a property from one of the other callers and I called the numbers and we got ahead in the bid. We gave this dude 5K (2K cash + 3K check) as he said he worked all these days and hasn't made any money and he could really use it and we could treat this as commission.  We learnt yesterday evening that the property we got was reinstated and it is an invalid sale.  I told him to return the money back and we blocked the check.  He isn't ready to give the 2K back. What should be the recourse? We want to file a suit against the agent..

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Patrick Miller
Investor · Smyrna, GA · Member since 2017 · 62 posts · 38 votes
8y

I was at the Cobb auction yesterday. He took you for a ride. 

Call his broker/real estate board. He is using what you gave him as a free commission. 

First off, it is illegal for him to take cash from you. It has to go through his broker. He can lose his license for that. 

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  • John Thedford
    Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
    8y

    I hope you consider taking actions. As I previously stated, he is not only a danger to the public but also to his broker. IMO he should not be a licensee. Desperate people do illegal things and taking cash instead of running through his broker is a big NO NO. Don't give this idiot a pass. This doesn't take into consideration the implied threats! This is EXACTLY the reason for state oversight. Unlicensed brokers LOVE the fact there is nobody to discipline or fine them.

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  • Basu G.
    OP
    Marietta, GA · Member since 2017 · 23 posts · 2 votes
    8y

    @John Thedford , @Cara Lonsdale - thanks for your inputs . Will keep you all posted.

    Will write an email to the broker whose forms he used to use when we signed contracts. This was the first time I ever saw an agent using some one else's forms - but who knows, I thought he was part of a team. May be he never was

    You know he even offered us to give his login to do the search ourselves. We didn't get there, but he did offer

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  • Basu G.
    OP
    Marietta, GA · Member since 2017 · 23 posts · 2 votes
    8y

    @Cara Lonsdale - until now I thought they are all the same. I just looked at his profile on Atlanta Communities and he is an agent and not a Realtor. The forms that we have signed for other contracts have had the name of a different person. Just looked her up - she is an Agent and not a Realtor as well. 

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  • Charlie MacPherson
    China, ME · Member since 2014 · 3k+ posts · 4k+ votes
    8y

    @Basu G. The only distinction between and "agent" and a "Realtor®" is that the latter is a member of the trade group known as the National Association of Realtors (NAR), while the former is not. Both are licensed to sell real estate in their respective states.

    NAR likes to make a big deal out of their code of ethics and promotes the notion that Realtors are better for the public because they subscribe to a code of ethics.

    In fact - at least here in MA - virtually everything that's covered in the NAR code of ethics is replicated in either state law, MLS rules or both.

    There are only two exceptions I know of.

    NAR requires agents to arbitrate disputes, where I as a former NAR member and now not, have the option of suing another agent if it becomes necessary.

    The only other thing I can think of is that NAR requires you to tell a buyer's agent whether you have other offers, if asked. Since I think that weakens my seller's position, I'm happier stating that I'm not at liberty to discuss other offers.

    NAR membership doesn't really do anything to prevent a dirtbag from practicing real estate as a dirtbag. Sure he can be kicked out of NAR, but so what?

    I used to be a member, but I felt that the $500-ish in annual dues was better invested in marketing.

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  • Cara Lonsdale
    Realtor and Investor · Scottsdale, AZ · Member since 2017 · 1k+ posts · 1k+ votes
    8y
    Originally posted by @Basu G.:

    @Cara Lonsdale - until now I thought they are all the same. I just looked at his profile on Atlanta Communities and he is an agent and not a Realtor. The forms that we have signed for other contracts have had the name of a different person. Just looked her up - she is an Agent and not a Realtor as well. 

     Okay, so as we peel back the layers on the onion of this transaction, it is becoming more of a stinker!  So sorry to hear that.  

    All Realtors are real estate agents, but NOT all real estate agents are Realtors.  Realtors subscribe to a higher ethical standard of practice, and agree to not only abide by that higher standard, but be measured and disciplined by it as well.  Realtors are required to take continued ethics training, and be a responsible agent within their community.

    Real Estate agents who are NOT Realtors do not do any of the above.  Now, that's NOT to say that all real estate agents are unethical.  Just that Realtors agree to, and are held to, a higher standard.

    I guess, before doing business with any real estate agent, I would ask them if they are a Realtor.  If they aren't, I would want to know why.  Why wouldn't they want to abide and be held to that higher standard for their real estate business?  

    Let us know how it goes when you contact the broker.  

    1Reply
  • Terry Burger
    Investor · Atlanta GA | Marietta GA | Greenville SC | Spartanburg SC · Member since 2014 · 202 posts · 60 votes
    8y

    @Basu G., 

    I've got to say, nothing makes me more angry than crooked real estate agents. Atlanta Communities has a good reputation in the community, so the advice given earlier to call the broker should get you the results you desire. If you wanted to pursue this with the Georgia Real Estate Commission my guess is that this agent could lose his license for pulling such a stunt. Which wouldn't be a bad thing to protect others in the future. He did break the law by taking money directly from you under the guise of representing your interests. 

    I've been in real estate for 16 years and sold over 1,000 before becoming a full time investor. You ran into the 1% of 1% of bad eggs in the broker business. I'm sorry. Please let us know how it turns out. 

    As an aside, finding deals at auction is tough. I like going there to find buyers who I can network with and provide them with properties we find that are off market. Let me know if you want to grab coffee sometime. I'll message you my number. 

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  • Charlie MacPherson
    China, ME · Member since 2014 · 3k+ posts · 4k+ votes
    8y

    @Basu G.  Now that we're a week past the original post, can you let us know how this worked out?

    1Reply
  • Basu G.
    OP
    Marietta, GA · Member since 2017 · 23 posts · 2 votes
    8y
    Charlie MacPherson - we tried to work with the realtor , but he seems to agree one day and not agree the other . He said today that he doesn’t care and we can go complain to the real estate commission I will get the form notarized and file the complaint next week
    0Reply
  • John Thedford
    Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
    8y

    Pick up the phone and call his broker IMMEDIATELY.  Brokers are responsible for the actions of their agents. I would ABSOLUTELY file a complaint but I would also hope to recover the funds through the broker if possible. The agent that took funds, misappropriated them, etc SHOULD lose his license. There is no forgiveness due to a crook. 

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