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DID THIS AGENT GO OVER THE LINE?

By
Real Estate Agent with Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate 303829;0225082372

IF YOU FOUND OUT THAT ONE OF YOUR BUYERS HAD CONTACTED ANOTHER AGENT TO SEE A PROPERTY, WOULD YOU SPEAK WITH THE BUYER, OR THE AGENT?? 

A couple of days ago, I received an e-mail inquiry from my web site.  It was about 6:00 a.m. when I read the consumer's e-mail so I answered her thanking her for contacting us and that _______, would be contacting her that day to arrange a showing.  Her mail included her name, phone number, e-mail address, listing number of the property she wished to see and a message that she would appreciate a tour of that property.  Looked like a good lead in the $700K price range.  I sent it to a very experienced broker who knows properties in the area of interest. 

I didn't think any more about it until the next morning when the message below was on my voice mail.   

"Ms. Harley, my name is ______, I'm an agent with ______________ in _____________.  We have a customer by the name of _______.  I understand that she contacted your office about seeing a listing in _____________".  We have a Buyer's Agency Agreement with her.  This is to advise you that __________ of our office will be writing a contract for the buyer.  Please do not contact her again.  * * * *.

"Not a problem", said I, to myself.  I have no interest in even communicating with a prospective buyer who has  a relationship with another REALTOR.  But, something was disquieting about the call. 

  • Why would an agent call another agent to discuss a consumer?
  • Why would a consumer with a signed Buyers Agency Agreement contact another agent to tour a property?
  • How do I know that there IS a BA Agreement?
  • How do I know that the "agreement" doesn't end shortly and the buyer is looking for another agent?
  • How do I know that the buyer is not dissatisfied with her present agent and is shopping for another broker?

So many questions.  I have discussed this matter with a several experienced brokers and their opinion is the same.  The agent was out of order contacting me.  If the consumer wanted to see the property with another agent, they are free to do so, assuming an agent would do so.  Once I know that there is a relationship with another agent, I do not (1) show property, (2) refer buyers and drop them from my IDX listing update database. 

However, I want to hear from the buyer that there is a relationship.  As it turned out, the broker to whom I referred the buyer spoke with her and determined that she had been working with another agent.  He advised her to contact her agent to view the property.  That would have been the end of it had I not received the phone message from the agent.   

Seems to me that if there were a current Buyers Agency Agreement in place, the agent would have counselled the buyer to

  • Contact him, her agent, if she found a property she wished to tour.
  • Don't go to Open Houses without her agent or letting the agent make the arrangements with the listing agent.
  • Don't contact other agents or brokers about properties, contact your own agent.

Seems also that the agent would enter their buyer in their own IDX system so the buyer wouldn't be getting daily updates from another agent or broker.  I've deleted the buyer from my IDX update system so she won't be tempted to contact me again. 

IF YOU FOUND OUT THAT ONE OF YOUR BUYER/CLIENTS HAD CONTACTED ANOTHER AGENT TO SEE A PROPERTY, WOULD YOU SPEAK WITH THE BUYER, OR THE AGENT??

 

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Comments(129)

Find a Notary Public needAnotary
QEC Internet Services - Long Beach, CA
In order the buyer to contact another agent in the first place, there must have been a one of the 3 below conditions:  1) breakdown in communications, 2) the relationship was fractured or 30 the agent had not instructed the buyer on proper protocol.
Oct 12, 2007 01:08 AM
Tricia Jumonville
Bradfield Properties - Georgetown, TX
Texas REALTOR , Agent With Horse Sense

Ntsike, there's another condition:  4) the buyer was properly instructed in proper protocol but acted against it anyway.  Trust me, buyers (and sellers) do this kind of thing all the time, no matter how carefully you go over each line of the buyers rep or listing agreement or contract with them.  Which is what I do - I have a background as a legal assistant and it's second nature for me to make sure that someone actually reads and understands as much as possible what they're signing, so I DO go paragraph by paragraph, and then suggest that if they are confused at all that they have it looked over by an attorney (as it also says in the documents, in big letters). 

 

Oct 12, 2007 01:17 AM
Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time

Lenn, I think you misread my comment. I am in complete agreement that you could continue communications with this buyer is if you chose to. Even so far as to have another BBA that does not conflict with there existing agreement(if there really is one).

Oops! I see what you are referring to. Me stating the other agent didn't do anything wrong by contacting you. Let me clarify that the WAY and the TONE of her contact were wrong. The act of contacting you in my opinion is not wrong. It just wasn't handled properly. If I would have contacted you on the same situation but with a smile in my voice and a big thank you for helping my buyer while I wasn't available this post would not have been written.

Oct 12, 2007 01:46 AM
Andy Werner, Jr.
RE/MAX Realty Group - Gaithersburg, MD
Real Estate, Gaithersburg, MD,

I would contact the buyer first (my client) and if they wanted to write an offer, then the agent. It happened to me this week. An old client called to say they visited open houses over the weekend and found one they liked and wanted me to write the contract. I had no idea they were looking, as I said, old client that bought 9 years ago.

I told them it didn't matter that they "didn't sign into the open house" and that the agent on duty wasn't the listing agent. I immediately called the listing agent and informed her of the situation. She had no problem honoring me as the agent and a contract was written and ratified. I know there is no "over the threshold" rule anymore, but I thought it to be the professional thing to do. I've done the same thing many times. Many Realtors "forget" that their fiduciary duty is to their client, not themselves.

In your case, the agent was out of line. No need to be confrontational, obviously an agent that "needs" the business.

Good post as always Lenn.

Andy

andywerner.com

Oct 12, 2007 02:53 AM
Christopher Walker
Mission Grove Realty Inc. - Hemet, CA
Local Broker and Realtor - Hemet & San Jacinto, CA

We, as Realtors, have a responsibility during a written or verbal  conversation to ask a potential client if they are working with another agent. In order to earn a commission that remains your commission, it is imperative that you ask this simple question; "Are you working with another Realtor?" if the answer is yes, I would also ask if the are under contract with that Realtor. If t potential client has only spoken with another agent and is not under contract, then I would proceed with the client and, at the very least, execute a agency disclosure at the first opportunity. If a Realtor fails to ask a potential client this simple question and then fails to execute an agency disclosure....they are setting themselves up for problems and, are breaching their responsibility as a Realtor.

There are many reasons why someone would contact another Realtor. It is not our responsibility or obligation to find out what those reasons are. It is our obligation and responsibility to ascertain whether or not they are represented contractually by another Realtor. Why they are contacting another agent is irrelevant. The only relevant question, as it relates to this, is whether you have determined, or failed to determine,  if the client has professional representation.

One thing that you CAN do is ask when their contract expires and execute a contract with the client that begins after expiration of their current contract. The agent with the contract has an obligation, when asked, to provide the information to you (Believe it or not). If they do not provide the information to you, you have the right to contact the client to determine the expiration date of their current agency agreement. (Applies to listings too).

Oct 12, 2007 04:11 AM
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Christopher.  We understand all of that.  I would suggest, however, that asking a buyer if they are "represented" is not always going to get an accurate answer because the consumer does not understand the term, "represented".  They do know "are you working with" or "who is your agent?", my favorite.

As far as inquiring about when their representation ends, I have no interest in that information. 

Oct 12, 2007 05:31 AM
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Andy.  Thanks.  The matter of Open Houses is an interesting one.  You're right, of course, that our duty is to our client, always.

Bryant.  You are absolutely correct, if the buyer's agent had never contacted me or had spoken with me in a friendly manner, it would never have been written.  After all WE DID SEND THE BUYER BACK TO HIM.  You'd think that would have satisfied him.  But, for some reason, he felt the need to "leave his scent".

Is it permitted to say things like that on ActiveRain

Oct 12, 2007 05:36 AM
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Tricia.  Good advice.  Then there are situations where agents sign buyers up and then send them out to find their home.  Then there are situations where agents sign buyers up and are rarely available to show properties.  I know this because folks call me often with these complaints.

Ntsike.  Right you are.  We'll never know.

Sorry George.  I am aflicted with the use of "the Royal WE".  That said, what would be the situation if the broker to whom I referred the buyer had determined that she did, in fact, have a BA Agreement with another broker and she still wanted us to show her the house?   He would clearly give her an Agency Disclosure and offer to help her buy the house as a sub-agent (legal in MD), or he could have signed an agreement with her as a buyer's agent, collected the co-op offered the BA and let the other broker collect their fee from the buyer. 

Not knowing the terms and conditions of the BA Agreement the agent that called me has, if he does, in fact have one, what is to stop the buyer from buying using the services of another broker, one whom she contacts directly and requests services even though she says she "has an agent"? 

 

Oct 12, 2007 05:48 AM
Fran Gaspari
Patriot Land Transfer, Inc. - Limerick, PA
"The Title Man" - Title Insurance - PA & NJ

Lenn,

Your posts are getting 'thicker' than the New York Times!!! Have a great weekend! Thanks,   Fran

Oct 12, 2007 06:06 AM
Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time
Lenn, Now you're cracking me up!!! I firmly believe we can "leave our scent" anywhere we want!!
Oct 12, 2007 11:02 AM
Tricia Jumonville
Bradfield Properties - Georgetown, TX
Texas REALTOR , Agent With Horse Sense

"My comments aren't being posted, and I wonder why."

George, I'm getting them via email, though I see they're not here.  I thought you made some interesting points, very professionally, though they don't agree with Lenn's point of view.  Especially the point about interference with a contract, which can be a real issue here, at least; other states may vary.  The appropriate thing to do, if the Buyer says they have signed with another agent but want out, is to tell them that when they have terminated that contract, you'll be willing to talk with them about representation but that the legalities preclude you from doing so as long as they are in a contractual relationship with another agent.  Most buyers and sellers, when it's put to them that way, respond positively.  You may or may not get their business, but I've never had one fail to understand, when explained properly, that you can't have an exclusive contract with more than one broker. 

 

 

Oct 13, 2007 06:02 AM
THE buyernulls Agent Buyer Broker Real Est
THE BUYER'S AGENT, Buyer Broker Real Estate - Dayton, Ohio - Dayton, OH
Dayton, Ohio
POOF! My comments disappeared again!
Oct 13, 2007 07:09 AM
Gary McNinch
Better Properties Real Estate - Renton, WA
Broker, Renton WA Real Estate
Good Lord,  Do you think Lenn got such a heated post going, that some of the comments vaporized?  Maybe she overheated the system? Great post Lenn.  Thanks to all.
Oct 13, 2007 04:50 PM
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Thanks Gary.  And thanks to all who expressed opinions about the question posed.  The consensus is that the agent did, indeed, go over the line by contacting me directly.  Other views are greatly appreciated and I've read some very thoughtful comments. 

This has been a very interesting discourse, indeed. 

While I appreciate and invite different views or views in opposition to mine, I have no intention of having my blog hijacked.  When comments stray off topic or the writer tries to use my blog to promote a special interest or business model that wasn't even the subject of my post, they will be uncerimoniously dumped. 

It's an action that most of us seldome take and I've used my "bleep" button to delete only 3-4 comments out of 6633 comments received.  Reposting a comment 8-10 times isn't going to change my mind

My blog is a friendly place and I intend to keep it that way.  Anyone who wishes to promote a special interest, business model or particular view has the freedom to do so on thier own blog

 

Oct 14, 2007 12:35 AM
Armando Rodriguez
QUEST REALTY SERVICES - Orlando, FL
Orlando Homes 4 Sale, Real Estate Broker-GRI

I always ask a customer if they're working with another agent with or without a BA. If a BA exists, I'll tell them to work with that agent.

Take care & good luck to you!

Oct 14, 2007 04:37 AM
Robert Huntsinger
Empire Realty - Upland, CA
Empire Realty Upland, CA - Full Service at a Discount

Client first and then if the other agent is overly agressive I would have a tlk with them.

Take care!

RJH

Oct 14, 2007 05:15 AM
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Orlando.  Thanks.  Me too.  I'm not that obsessed with "written BA Agreement" in MD because we have "presumed buyer's agency".  Few, very few agents get BA Agreements until they are ready to write an offer becasue the law says we can't write a contract without one. 

That's why we seldom as "do you have a written anything?".  We merely ask if they are working with another agent becasue if they are, we pass unless they, the consumer, specifically says they want out help and no longer wish to work with the other agent. 

We are very respectfull of other agents in these matters and we fully understand that the consumer hasn't the foggiest idea what we're talking about. 

Robert.  We are agressive with buyers until they say they "have an agent". 

Oct 14, 2007 07:24 AM
Vicky Poe
Good Ole Rocky Top - Crossville, TN
Realtor/ Auctioneer
It sounds like there is a problem with the agent/buyer relationship or the buyer would not be contacting you.  The problem could be the agent's behavior.  That agent sounded extremely rude.  You are right there is a lot of variables that you do not know.
Oct 14, 2007 12:37 PM
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Vicky.  Thanks.  You have good insight.  I get a number of contacts from prospective buyers who already have a relationship with an agent.  We're not even interested in the details.  We just send them to their agent.  Which is what made that buyer's contact with me so strange. 

I suppose if we hadn't asked about her agency status, showed her the house, wrote a contract, and collected a fee, he'd really have been apoplectic. 

OUr clients do not contact other agents.  We have a network of agents who back each other up if a buyer has a question about a property and their agent isn't available.  We don't send folks out to find homes nor do we expect others to do the showing and then we swoop in to write a contract.  In fact, I don't know how an agent can write a contract without seeing a home, but I know that they do it every day. 

 

 

Oct 15, 2007 12:04 AM
Lori DeLoera
Century 21 Sundance - Port Orange, FL
The agent to whom you referred the buyer did his job by asking whether the buyers were working with another Realtor.  But what if he hadn't, or what if they buyer wasn't honest.  I'd rather hear from their agent, however, maybe this particular agent needs a lesson in tact.
Oct 17, 2007 11:31 AM