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Feng Shui This | Covering your Butt can Backfire

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Services for Real Estate Pros with Feng Shui This 71258

Well, here I go...sticking my neck out again and telling it like it is.  No names will be used...yet.  

Once upon a time, long ago, I met an "experienced" Real Estate Agent.   Of course, naive as I was at the time, I just considered him a bit "crusty".   I also took the word of other agents who knew him better and said he was "alright...a good guy".  Ever notice how some people think it's necessary to always say something good about a person?  Trust your intuition.  If you have to ask about someone's integrity, there's a reason.  So, "Green Agent" (me) is told not to worry about "Crusty Agent".   And, Green Agent falls for it.

Then my clients bought property he had listed.

A little background...the property was in this agent's "neighborhood", in fact, he owns property next door.  He spoke of driving a 4 wheeler on every bit of it, since at one time his relatives owned it.   

The property closed in winter.  The sellers promptly moved out of state.  It's hilly, on a ridge and would be difficult for my client, who is disabled, to walk the boundaries.   The ground was frozen, the people who lived there were crabby and didn't want anyone in the fields with their horses.  So, there you go.  I'm sure more experienced agents might think they know what's coming.

I bet you don't... ;-)

In February of that year we had a bit of a late winter thaw.  On the way back from the barn, my client smelled sewage.  Following the smell, he found a pipe coming out the back of his  yard, draining raw sewage into the ravine behind their house.  Of course, they called me.  (It all comes back to the agent, right?)  After going through several "possibilities", the health department was notified and it was discovered that this place did not have a septic tank.  Apparently it never did.  It was advertised with one!  And, after looking up the history, we found that it had been advertised with a septic system three times, by the same agent...who was a dual agent twice on this place.  He's made 5 commissions on this property.  

Since the odor was overwhelming when the ground was not frozen, I can only assume that the man has no sense of smell,  nor could he see bits of toilet paper scattered over the hill while he rode his 4 wheeler over "every inch of it".   I also must assume that neither of his previous clients complained to him about it.  

So, my clients had to have a septic system installed.  $7500.00  And, they thought someone else should pay for it.  I wholeheartedly agreed.  

I felt and still feel terribly responsible for allowing my clients to be duped like this.  I owned up to missing the fact that the people had lied on the disclosure statement, checking off contradictory boxes on the form about "the imaginary septic system".  And, I owned up to the fact that I did not suggest a Health Department inspection of the  septic system.  The sellers and their agent said there were "no problems with the septic system" when asked by my clients, with me present.  It simply never occurred to me that anyone would not have a septic system.

So, I notified my E & O insurance in writing and gave all my details.  Bottom line, I did this within days of the Health Department assessment.  Now, the thing for the selling agent to do then would have been to own up to his "mistake" and see that my clients got a new septic system.  But, no...this didn't happen.  

Complaints were filed with the Commission, and lawyers were hired.  My E & O paid a small part of the cost of the new septic system and the other agent's E & O paid a little larger part.  My clients are still out a few thousand for the septic system.  (more for a lawyer)  To be clear, in the beginning, all they wanted was a septic system, paid for by those who screwed up this deal and those who lied about the property.  

So, now I'm done.   Doing the right thing and owning up to my mistakes has shown my clients that I really am on their side.  They still like me.  And, the other folks...well lets just say that their pile of crap has just begun to stink.  And, all because they tried to cover their butts, instead of trying to make things right.   

Posted by

www.monicahess.com

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Copyright: Monica Hess, Kentucky's Feng Shui Master    859-492-0582

 

 

 

Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

I'm a big believer in trusting your first instincts about people... anytime I haven't I've regretted it. Fortunately, my regrets didn't extend to the kind of horrible situation you found yourself in. But you handled it just right... honesty always pays off in the end. Those who didn't act responsibly in the end--karma will get them! Always does!

May 02, 2013 12:57 AM
Rachell Lara & A List Properties
eXp Realty / 619.316.7445 - San Diego, CA
A List Properties - San Diego Neighborhood Experts

WOW! I'm amazed at the resolution. A college had something similar, the listing agent said it was sewer when it was septic. Everyone paid out.

I personally always have the septic inspected, or at least get the last record of when it was done.

Crazy that people were living like that.

May 02, 2013 01:01 AM
Monica Hess
Feng Shui This - Murray, KY
Kentucky's Feng Shui Master

Richie, I'm beginning to think Real Estate isn't so much ruthless as it is littered with crooks who  have gotten by so long because honest people wouldn't stand up and rat them out.  

May 02, 2013 01:31 AM
Monica Hess
Feng Shui This - Murray, KY
Kentucky's Feng Shui Master

Nina, Karma does have a way of coming back and biting people in the butt...no matter how hard they worked to cover it.

 

Rachell, These people had lived there for YEARS!  Disgusting!  

 

May 02, 2013 01:34 AM
Dan Tabit
Keller Williams Bellevue - Sammamish, WA

Hi Monica,

Interesting to see how things work in different states.  We are required to have our septic systems pumped and inspected with each transaction, or provide evidence that it's been done within 6 months of a sale.  I guess that may be difficult if the ground is frozen.

May 02, 2013 01:50 AM
Marc McMaster
RE/MAX Centre Realty - State College, PA
Putting my clients before myself

I still don't see what you did wrong, even as an inexperienced agent.  In my market we recommend a septic inspection of every property with a septic system where they have to pump out the tank.  I don't know how it works in your market though.

May 02, 2013 02:32 AM
Pat & Steve Pribisko
Keller Williams Greater Cleveland West - Westlake, OH

Hi Monica: 

Thanks for writing this blog.  You were in such a difficult situation as a new agent.  But, what you learned from this ordeal may help other new agents.  I was very interested in your blog, because, in Northeast OH (the Greater Cleveland Area), we still have rural areas with well water and septic systems.  And, as you now know, both are critical for inspection.

May 02, 2013 03:01 AM
Joanna Cohlan
Fresh Eyes For Your Home - Chappaqua, NY
Designing, Decorating & Staging Westchester Homes

Not sure why you posted this in Feng Shui but, this does seem like a lack of experience on your part and a failure by your manager to make sure you dotted all the i's and crossed the t's.  That being said, not sure what the rules are in Kentucky but wouldn't there have been a septic inspection? We have them in New York as a routine.  

May 02, 2013 04:02 AM
Stan Chernecki
Devstar Realty - Anthem, AZ

What a story.  Thanks for the heads up.  I guess this is why Arizona requires septic inspections.  There are Arizona legends, likely true, of people using old VW vans as septic tanks in rural areas!  Cool.

May 02, 2013 04:38 AM
Carla Muss-Jacobs, RETIRED
RETIRED / State License is Inactive - Portland, OR

There's so much sub-text to this post.  Of course, I'm not here to wonder about a buyer's agent not recommending to their client to have the sepctic tank inspected.  Because had that occured, and buyers declined, then that's on them.  An inspection would have found the obvious . . . there was no spectic.  

This is a case of the grass, and the agent, is always greener over the spectic tank.

May 02, 2013 04:41 AM
Christopher Campa
LONG & FOSTER REAL ESTATE - Gainesville, VA
Northern VA Realtor

Monica, Yes I agree that it is much better to learn a lesson from others instead of going through it yourself.

May 02, 2013 06:30 AM
Monica Hess
Feng Shui This - Murray, KY
Kentucky's Feng Shui Master

Dan, It's not a requirement here, but it should be!

Marc, I believed the sellers agent when he said there was a septic system and I believed the owners when they said they had never had any problems with it.  I expect it will be manditory soon to have an inspection.  It just never occurred to me that someone would put their license on the line like that.

Pat and Steve, Yes...it has been a nightmare for my clients.  I'll never believe another agent, so this won't happen again.

Joanna, Feng Shui isn't just about the interior decoration of a home.  It's about the whole picture...especially the outside forms.  Without good outside forms, good Feng Shui does not exist.  This was a Feng Shui disaster!

Stan, I've never heard of vans being used as septic tanks, but I have heard of septic tanks being used for storm shelters!  ha

Carla, That is why I turned this into my E & O insurance as soon as I knew what had happened.  This was an omission more than an error.  I didn't recommend a septic tank inspection, but here I am not required to.   The home inspector recommended one.  My fault was in not assuming that the sellers and their agent were hiding something.  I felt I was partially responsible for my clients getting screwed.  My clients do not blame me, neither did the Commission.  But, I should have listened to that little voice that said, "Something about this agent and his clients is not right."

Christopher, We live and learn.  I'd much rather learn from the mistakes of other people!

May 02, 2013 08:30 AM
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

Oh $hit, literally.  Yeah, that situation was really bad.  I just can't believe the neighbor agent didn't know.

May 02, 2013 11:01 AM
Monica Hess
Feng Shui This - Murray, KY
Kentucky's Feng Shui Master

Tammy...I had them get a second opinion about the septic system.  I honestly could not believe it myself  until the second guy came in and did his tank search...finding NOTHING.  Amazing.  

May 02, 2013 11:10 AM
Tni LeBlanc, Realtor®, J.D.
Mint Properties, Lic. #01871795 - Santa Maria, CA
Tenacious Tni (805) 878-9879

Wow, how can you think that you have a septic tank when you clearly smell that you don't?  Unbelievable.

If I had made such an error as a listing agent I would not be trying to dodge the issue.  The lack of accountability is the most frusraing part...

May 02, 2013 03:07 PM
Monica Hess
Feng Shui This - Murray, KY
Kentucky's Feng Shui Master

Tni, Sometimes a septic tank will overflow...maybe because of extra rain or just a badly placed tank.  Something was obviously very wrong...and it had been passed from client to client for years...by the same agent.  Now, how many people were covering and backing up from that situation over the years?  I bet there's a book in this one.  I can't wait to see how it turns out.

May 02, 2013 09:11 PM
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate Services

Monica, I’d like to think the listing agent is in deep do-do over this crappy deal. I hope my E&O provides me better coverage, God Forbid I ever need it.  I would definitely go after the agent and seller for failure to disclose. No reasonable person would think there was no septic tank … so relying upon the sellers and listing agent does not mean you were necessarily negligent. 

May 03, 2013 03:06 AM
Monica Hess
Feng Shui This - Murray, KY
Kentucky's Feng Shui Master

Kathleen,

I'm with you!  The buyers and I actually had a nice little conversation about the merits of tar and feathers.  ;-)  

May 03, 2013 05:00 AM
Pam Miller
Realty Associates - Conroe, TX
Broker Associate - Water Crest on Lake Conroe

Monica - Integrity.  You either have it or you don't - and, you have it!

May 03, 2013 11:07 AM
Monica Hess
Feng Shui This - Murray, KY
Kentucky's Feng Shui Master

Thank you, Pam.  I appreciate that.  

May 03, 2013 11:54 PM