The market is busier than it has been in many places throughout the country and open house signs dot the landscape on weekends more often than they have in the past.
While there is always more than one opinion...legal or not...(or as we say...or there would be one lawyer)....from the pen/keyboard/mouth of our highest and best source....a lawyer who teaches CE for Realtors, staffs the hotline for the state board of Realtors, and owns a title company... has some cautions to offer agents who "assume" that the Buyer is their buyer and also that they will be paid at closing.Uh oh....not necessarily so.....
Ahhhh...you say Ms/Mr. Agent you have a buyer agency contract...the buyer has agreed to work with you so there is no problem ....you write the offer and of course, you will be paid...not necessarily so.......Buyers and agents believe that the contract is a protection for representation and commission...it may or may/not be in every case.
POPULAR SCENARIO - Buyer has a buyer agency agreement with an agent and is driving and comes upon an open house sign....the agent he is working with has not told him about the house....not found it through listings sent ...just a "happened to be in the neighborhood" kind of situation. Buyer goes to the open house..explains he is working with an agent...has a buyer agency and tours the home on his own. Later he tells his agent he would like to see the house again and the agent with whom he has a contract, goes with him and an offer is written. Offer is accepted, inspection done...financing concluded. Closing date set.
The offer to purchase was written with the Selling agent indicating he is working as a Buyer's agent...the Listing agent behaves as though that is an accepted fact....UNTIL....sometimes minutes before the closing when the closing statement appears from the Seller's side of the table with NO COMMISSION paid to the Buyer's agent.WHAT ?
The listing agent will claim "Procuring Cause" ....the sign caused the Buyer to come into the house...never mind who the Buyer worked with, never mind who did all the work, never mind that the listing agent behaved as though the represenation was an accepted fact...the agent....can claim procuring cause....and according to this lawyer...can win.
How can a Buyer and the Buyer's Agent be sure that the representation is recognized and the Selling agent is paid...? Stay tuned for tomorrow's blog.....Amen and Women.
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