URGENT: Can a buyer real estate agent be changed before closing?
Investor · Virginia Beach, VA · Member since 2014 · 66 posts · 10 votes
Hi guys,
I need some urgent advise.
I am experiencing something that I didn't think could be the case.
I am about to close on a condominium in Virginia Beach and am completely out of sync with my buyer side agent. I don't know if I will be able to close unless I change my representative.
As much as I am not feeling good about doing it, I cannot see the alternative. And I know for sure, I am not going to work with her on further transactions.
So, the question is, how can it be done with least pain?
I still want her to get at least a portion of commission and would hope that a new agent will share it with her as practically all the leg work is done.
We just need to submit closing extension (today) because there is no way I can close on Monday, logistically.
Now, I don't know how the seller could view the agent change at the same time as I am requesting a closing extension. He might grant it, he might not.
My offer was cash, no inspection, 10 days closing. I don't believe it should be as hard as it's been so far with this deal.
I really need help with this.
I wanted to do it at the pace that makes since for me.
A 10 day closing isn't the time to do things at your pace, a 10 day closing is peddle to the metal while you engage the afterburner.
You mention some HOA stuff, but later go on to say that ultimately you are ok with the HOA stuff, except you don't like the manner in which it was presented, and instead the real problem is that your agent is pushing you to close when you aren't ready to close due to funding. Why would you try to fire your agent for pushing for you to get your finances in order like you said you would when you put an offer on a 10 day closing.
If you're making quick close, cash offers, you need to have your finances already lined up, the fact that you aren't ready isn't your agents fault.
The investment account should have been liquidated the day your offer was accepted, that way the funds could transfer and settle and be ready to go on closing date. Trying to leave the funds in the account for an extra few days trying to squeak out a few extra cents in interest while you 'qualify' the house seems silly. If I was the agent and my clients money wasn't ready to go after we had offered quick cash close then I would be losing my mind right about now.
A 10 day no inspection, quick close, with cash offer should only be used when you know you want the house no matter what. It's not the time to be picky about subsections of an HOA agreement nor is it the time to slowly start getting your finances in order.
I'm genuinely not trying to be mean here, we've all made mistakes in our investing careers, myself included. Making mistakes is how we learn and improve ourselves. However I think it's important that we first acknowledge that a mistake was made, as we can't learn from our mistakes until we recognize that we have made a mistake in the first place. Not having funds available on the date of closing on a cash deal is a pretty big mistake.
"I requested my buyer agent in writing to file extension yesterday (when the settlement day was), and it doesn't seem she did." Olga
Your ATTORNEY, NOT your Realtor, handles that. You should have directed that request to your Attorney.
Hm, @Judy Parker, thank you. That's not what I was told by my realtor. She was verbally discussing extension with the seller agent and then trying to talk me out of it referring to them as "they seem scared but I verbally got you one more day". Well, I don't need 1 days, I requested for 4, and I don't need verbally, I need in writing.. Maybe Virginia law is different than in NJ? I am not sure.
I will email to my attorney though, I still have 1 day to handle that. The problem, of course - it's weekend, so I don't have my hopes up.
Whatever will happen, that's what meant to, I will hold it...
@Olga Kostrova
Look up their broker. Call the broker and ask them to assign another agent to help through closing.
@Olga Kostrova
You can file a complaint with state board. I'd try to make every effort to be civil but if this is a bad apple and she/he is doing this to you and all I'd report the offense and make it known.
How to File a Complaint Against a Real Estate Agent:
https://www.google.com/amp/s/www.wikihow.com/File-a-Complaint-Against-a-Real-Estate-Agent%3famp=1
I hope this helps. I hope you find your answer and I hope everything works out.
@Olga Kostrova
As a Realtor myself I am sorry to hear you are experiencing these issues. We are here to help make deals smooth and easy for all parties. I would absolutely call the broker directly to make sure they know of your bad experience and see what can be done on their side. Everyone here is right, it is the brokers deal, and you are the brokers customer not the agents. You have ever right to get the service you deserve.
To your question it is unlikely you can fire at this point. Call the broker or terminate the deal.
In hindsight, what I hear is when you signed the initial offer you didn't want a 10 day close. That was your first miscommunication and it has gone downhill from there. If you knew you would not have money by closing then your closing should be set when you would have the money or whatever other terms you needed. An agent can advise you on terms, a lawyer can advise you on terms but you should only sign terms you feel you can meet and feel comfortable with. Decide if you want this deal or want to walk away. It sounds to me like you want to walk away and find another agent and another deal. If you want the deal call the broker and access your money to be able to close. The broker is responsible for transactions in their shop they can facilitate.
Lastly all states are different on real estate sales. Disclosures, who handles closing, what is required by state law, when you gain possession, etc. Get familiar if you are buying somewhere. Differences in process can mean anything from a minor inconvenience to a deal breaker.
@Olga Kostrova to me it sounds like this is a case of the agent not doing what they are required to do and putting you the buyer at risk. If you needed an extension and this was not done on time, I would think the agent/broker did not perform. Hopefully you had written down instruction for your agent to request an extension.
It is true, Virginia is a "Buyer Beware" state.
@Olga Kostrova not helpful for this but next time it might be helpful to write in "buyer has X days from seller's delivery of the complete set of all due diligence documents to...." instead of the vaguer language about inspection/contingency periods I often see. That will protect you and keep the seller on their toes
Guys, thank you so much. All advices are very helpful. Very grateful.
@Olga Kostrova I’m sorry to hear you're going through this. If following through is not an option, I would recommend you simply ask for her broker to represent you. She can get a commission but you’ll have a different representative
Ben Zimmerman, seems you were not reading my posts. (Bold font again, not sure why).
So, there is no such thing "you should have done this, and you should be ready with money that". It is and it should be what 2 people are agreed on. Period.
I am reading your posts, and I am disagreeing with you on several points.
You make it sound as if this situation is one sided, that you are right, and the agent is wrong. However it's entirely possible for both people to be right, or for both people to be wrong. I understand you're upset, and when people are upset it's human nature to only see fault in others, and not yourself. But being a neutral third party allows for viewing the scenario through a different lens.
Agents should always request an extension if their client asks, it doesn't matter if the client has a valid reason to request an extension or not, the agent should still at least ask for the extension. However, at the same time clients should do the things within their power to not require an extension in the first place and close on time as they had originally agreed to with the seller. After all per your quote the only thing that matters is 2 people doing what they agreed to, and you agreed to close in 10 days. You say you never initiated the funds transfer from your investment account because you were waiting for the HOA docs, but that is ultimately just an excuse because having those documents is not a prerequisite for you to start arranging your finances. You willingly chose to delay the transfer because you thought it would be more advantageous for you to wait.
Now it's your money, you can transfer it whenever you want. You can transfer it immediately or you can wait. You can buy a house, or you can not buy a house. You can sit or you can stand. We all make decisions every day, and those decisions have consequences both good and bad. You chose to wait to transfer your money, which has led to the current situation we are talking about.
Had you made a different decision and started the funds transfer when your offer was first accepted, you could have reviewed the documents Thursday evening, and closed on Friday as originally scheduled. Or you could have had questions about the documents and contacted the HOA for clarification Friday morning prior to closing.
Would it have been nice to receive the documents well in advance? -Of course! But fast closings are chaos, even when things go perfectly they are still inherently messy. If you are wanting to be able to do things at your own pace and not feel rushed, then you shouldn't agree to a fast 10 day closing in the first place. It would have been nice to have the HOA docs well in advance, but the only thing that technically stopped you from closing is the fact that you don't have the money ready. Everything else is just background noise.
But regardless, you are allowing a personal grudge with your agent from stopping you from moving forward. Who cares about your agent, screw them!! The only person you really need to be concerned with is yourself. You said the deal was good, so close on it! Make some money, and then never speak to your agent again. Leave them some bad reviews if that makes you feel any better, but don't walk away from deals because you have a personal thing against your agent whom you have likely never met and will certainly never meet again.
I'm still not trying to be mean, and this will be my last reply to this thread as I wish you nothing but the best of luck in your investing journey. Did the agent do some things wrong that are worth complaining about? -Probably. But you can't control what other people do, you can only control yourself. Learn from any mistakes and always be better at the next deal then the last deal. Deals will always be messy, the only thing you can do is be properly prepared so you can take decisive action when the opportunity presents itself. It sounds like this deal is going to fall apart, but I think it's important to realize that no matter what the background noise was, ultimately the only thing that stopped the purchase of the home was a lack of funds on closing date. In a perfect world you would have had the HOA docs earlier, but getting the documents the night prior didn't need to be a show stopper. Had the funds been transferred on time you could still be frustrated with your agent, while you sit at home and pop a Champaign bottle to celebrate your new purchase with family/loved ones. But because of decisions that were made, there is no celebration to be had, only the being frustrated part. -Good luck in your endeavors.
The agent that is the procuring cause of the closing is entitled to be paid a commission.
Speaking as a principal broker in Virginia Beach, you would have created agency with your buyer agent on your first substantial real estate conversation and as such, they have the procuring cause of the sale. Did you sign a buyer/broker agreement with them? If so, there should be a time limit on its effectiveness, so to speak (3 months, 6 months, etc.). Personally, I would recommend that you gut it out and close with the agent that you are dissatisfied with, as it would be too much trouble to change course, especially if you are almost there. Even though you feel you were given sub par service, there are substantial consequences to be had if you were to back out at this point. You always have the option of calling the agents broker and informing them of your grievances. Good luck, hope it works out for you...we’re all friends at the closing table!
Hi guys, just wanted to thank all of you again for all the suggestions.
With blood and sweat :-) I got an extension approved (verbally only) and risked to go with the discussed dates, releasing HOA contingency before I actually got all needed answers... and got it it signed and sent to me literally at the very end of the next day after the settlement day (the seller was away and couldn't sign?), while sitting with a pack of documents in the notary office - 20 minutes before their office closes for the week - on Friday. Phew...
That was a stressful transaction, but I closed my first deal, and I am now relaxed and satisfied with the risks I took.
There is still some unfinished repair that was coming with the original offer - the seller didn't complete, so I closed the property anyways and gave them 4 weeks for the repair (I am not in a hurry, still in California). I withheld $5K in escrow to make sure that it';s completed before the property gets into my possession, after one more, final, walk through.
So, now I am ready to hunt for the next 2 properties. This time - detached 3+. One with regular mortgage financing, one by refinancing the condo.
It's time to find my dream team, I guess... Especially when it comes to renovation.
Thank you again...
Congrats!! Glad it all worked out, as best it could given the circumstance.
Thank you, @Douglas Mcqueen.. :-)