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Are You Next? Atlanta GA Agents fined for lousy lawn maintenance!

By
Real Estate Broker/Owner with Success Realty

Property with foreclosure sign by respres (Jeff Turner) at flickr.comAs foreclosures increase, it is becoming more and more typical to see homes with overgrown lawns or "excess, undesirable vegetation growth" as our local code and ordinance officers call it around here.

The Atlanta Journal Constitution published an article today about real estate agents being ticketed for eyesore properties.  "Agents say...the city's picking on them because they are easy targets. The city, they say, should be applauding their efforts to get foreclosed properties into the hands of new owners who will properly care for them. City officials say they just want some of the blight cleaned up."

One agent plead no contest and paid $3,311 in fines last month. The city's ability to levy the fine against the agent appears to depend upon the specific listing contract and the duties that the  court interprets the agent as being authorized to perform on behalf of the owner.  I'm sure that was for more than overgrown grass, but we need to be aware of this growing issue.

All REO agents and foreclosure specialist need to very carefully review the listing agreements that the banks and asset managers utilize when listing properties.

I recently had a warning posted on one of my listings.  I called the code officer and explained that I was not authorized to directly manage the maintenance of the property, that the asset management company sub contracted all work through a field service company, and I provided him with both their phone number - but this scares the heck out of me anyway!

Are code officers in you area beginning to target real estate agents, yet?

Michelle DeRepentigny, Broker of Success Realty, Athens, GA                           photo credit: respres (Jeff Turner at Flickr.com)

Jeff Payne
The Payne Group at Keller Williams Success Realty - Panama City, FL
Panama City Real Estate

Any first year law student could get this laughed out of court.   There is now way they can hold someone who does not own the home responsible.

Jul 09, 2008 01:50 PM
Gene Allen
Fathom Realty - Cary, NC
Realty Consultant for Cary Real Estate

Our city so far as I know hits the owner of the property up.  I had a vacant house and the notice went to them.  They called me to see if I could get anything done to the property.

Jul 09, 2008 01:52 PM
Lynn911.com ~ Dallas Real Estate Agent Top Team
Dallas Houses for Rent Dallas Apartment Rentals Lynn911.com - Dallas, TX

Dallas homes for sale, Call 972-699-9111 Lynn 911 Dallas Top Real Estate Agent, Dallas homes for sale, Dallas home foreclosures for sale, Dallas homes for sale, Dallas foreclosures, Dallas apartments for rent, Dallas apartment rentals, http://www.lynn911.com , http:// dallasapartmentforrent.blogspot.comIt is amazing how the entire world is the realtor fault, I had a listing the HOA was screaming at me that I had to mow the lawn from an owner occupied home,,, the HOA was going to report me to the board I stated that if I touch a blade of grass I could be sue if they wanted it mowed GO AHEAD... the owner contractor did not show up "when spring had sprung" the owner had to get a new contractor... THE ENTIRE AREA WAS MY FAULT....

Jul 09, 2008 01:53 PM
Kim Tavares
Legend Residential Sales LLC - Dix Hills, NY
e-PRO - Long Island, NY

so now they're saying we're suppose to mow lawns too....

Jul 09, 2008 01:53 PM
Michelle DeRepentigny
Success Realty - Athens, GA
Broker Athens, GA

Jeff, that's what i would have thought also, UNTIL I talked to an attorney friend a few moments ago.  The problem is that many of the REO listing agreements specifies that the agent  is to schedule and pay for lawn maintenance, repairs, etc. and then is to be reimbursed by the asset management company.

At that point the agent is the authorized party acting on behalf of the seller and is contractually the repsonsible party.  Obviously not a problem with most state association listing agreements, but a significant issue with common REO listing contracts.

Jul 09, 2008 01:59 PM
Michelle DeRepentigny
Success Realty - Athens, GA
Broker Athens, GA

Gene, thats the standard operating procedure, but it appears that somebody in Atlanta has found an interesting curve ball to through at us.  I just hate the thought that this sets a standard and that the agent didn't fight it the first time. 

Jul 09, 2008 02:01 PM
Michelle DeRepentigny
Success Realty - Athens, GA
Broker Athens, GA

Lynn, do you think we could justify raising our commission for the increased liability?  :)

Jul 09, 2008 02:02 PM
Jeff Payne
The Payne Group at Keller Williams Success Realty - Panama City, FL
Panama City Real Estate

I list REO properties but they do not make me responsible as I would never sign the listing agreement that says I pay the expenses and then get reimubursed.   All of the work that happens on my REO properties gets paid directly from the REO company.

Looks like agents need to read their listing agreements to make sure they are not caught holding the bag or in this case the fine.

Jul 09, 2008 02:04 PM
Michelle DeRepentigny
Success Realty - Athens, GA
Broker Athens, GA

Kim, it looks that way :)

Jul 09, 2008 02:04 PM
Michelle DeRepentigny
Success Realty - Athens, GA
Broker Athens, GA

Jeff, you are fortunate.  Many of the asset company who control this area reimburse the agents who pay for utilities, lawn care and repairs up to a certain amount out of pocket and then wait around for 45 to 60 days to get reimbursed. 

Jul 09, 2008 02:36 PM
Gary L. Waters Broker Associate, Bucci Realty
Bucci Realty, Inc. - Melbourne, FL
Eighteen Years Experience in Brevard County

I guess I am cheap...no out of pocket maintenance of any listing for me....  A potential for being fined is a big issue I am sure.

Jul 09, 2008 03:59 PM
Michelle DeRepentigny
Success Realty - Athens, GA
Broker Athens, GA

Gary, Lol, thanks for stopping by.

Jul 10, 2008 12:49 AM
Michael Carter
Keller Williams Realty - Simpsonville, SC

Wow, thanks for the insight and warning. not sure if we might have that same problem here or not, but I'm going to ask around.

Michael Carter Realtor Greenville, SC www.beachboyrealestate.com

Jul 10, 2008 02:39 AM
Michelle DeRepentigny
Success Realty - Athens, GA
Broker Athens, GA

Michael - better to be aware and make sure you are covered than caught by surprise.  In reality, the agents whose listing contract state they are responsible don't appear to have a leg to stand on.  I've heard from some that they don't  have the money and cannot afford to pay out of pocket and then get reimbursed.  Ultimately it is a business model decision, but if a contract says you are to pay you had better do so, at least in some areas!

Jul 10, 2008 04:24 PM