One of my agents had a recent referral experience that really makes her question how some agents can have such a blatant lack of competency and ethics.
My agent (the referring agent) was contacted by a friend who lives in the Midwest and knew of a seller who was not happy with his current agent and was looking for a new listing agent once his current listing agreement expired. The first mistake the referring agent made was not to list the opportunity on ActiveRain. She wanted to locate an agent who serviced this particular township and followed a Google path to track down several experienced listing agents for that township.
An agreement was reached for a 20% referral arrangement with a letter signed by the receiving agent’s broker. The receiving agent then went on to get the listing, sold the property in less than 60 days, went to closing and pocketed the entire commission.
The referring agent found out from her friend the deal had closed. She contacted the receiving agent to confirm that closing had occurred and asked when she should expect her referral commission. She was then informed that, in compliance with their state laws, the seller must sign an agreement that allows a third party to be compensated from the proceeds of the sale. At closing, the seller was advised of the requirement and declined to sign it, stating that he was not aware of and had no relationship with this referral agent and, finally, would not authorize payment.
The listing broker and agent refused to accept any responsibility; would not discuss why this matter waited until the closing table and, of course, was not in a position to violate state law and compensate the referring agent.
It’s not possible for any of us to be aware of all state laws that impact the ability to compensate parties involved in a real estate transaction. Our disappointment and one of our lessons learned is to ask one more question in the referral process.
Dave Rosenmarkle
Broker/Owner
Highland Realty
Arlington, VA
Office (703)538-2566
davidrose@mris.com
www.Highland Agents.com
It's a great day to be of service to others!
Comments (2)Subscribe to CommentsComment