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Buyer Deceived Because Realtor Needed Commission!

Yesterday I got a call from a Broker in another office and company, not an unusual thing, but the conversation was unusual. This broker has had her license longer than I, she has lived in our community for almost as long as I have, and her lack of knowledge down right scares me.

She has a buyer that has an accepted offer on a lot, in a subdivision that is fairly popular. This broker has done a few transactions over the last couple years in this area and should know the zoning and area well.

We all know what a RR10, FP, WA and LM are (in order they are Rural Residential, Flood Plain, Wildlife Area, Landscape Management). She has not added a due diligence contingency to the accepted offer, and each of the above are listed for zoning on the County Records for this property.

Closing is a week away and her buyer has gone to the County to start the permit process which because it is LM will require additional permits and issues. Her buyer had no clue; of what this would entail when the County pulls the property information (which is available on line to the public) they inform him that the building area of the lot is very small.

He is amazed that he can not just build anywhere on this soon to be his lot. However, when you look at the Flood Plain Map you can clearly see that there is only a small corner of the property not in the Flood Plain. The ground is generally very "spongy" in the area in Spring.

He does what any responsible buyer does and calls his Realtor. She is clueless, she has not given him any of this information prior to his writing the offer, neither of them have looked at any of the zoning prior to writing the offer. They ASSUMED that because the sewer hookup was paid you could build on the property.

Her question is, what can she do? How can she get the County to allow her client to build on the land? When I explain the hard facts to her that even if she could get this changed the land would not be suitable, insurance would be sky high and they would have to have flood insurance, something that is not common here, her response was but I need the commission. How can I keep this together?

At this point I did something I do not think I have ever done before. I asked her to kindly remove my phone number from her phone, to not associate with me with anything that had to do with business.

I am amazed still that she would ask me to help her deceive her client so that she could have the commission. We all get hungry but when you put your own needs before your clients you are asking for more than Karma issues, you are asking for a law suit. Just as she was hanging up she asked again, "What would you do?" My response was simple - "Who do you represent?"

So remember who you represent, and be sure you take as much care with their money as you would your own. Know your area, know everything you can, and remember if needed write in a due diligence period in your contract.

Read the Update Here

________________________________________________________________________________________________________
Thesa Chambers • Broker • RE/MAX Sunset Realty
541-771-7064 Cell • 541-536-0117 Office • 888-868-2050 Toll Free
Mailing Address • PO Box 3510, La Pine, OR 97739

Posted by Central Oregon Real Estate | Broker Thesa Chambers, Licensed in Oregon on 03/22/2007 01:56 AM

Comments (76)

central oregon real estate, bend oregon real estate, la pine real estate

Originally posted at: Central Oregon Real Estate Info: Buyer Deceived Because Realtor Needed Commission!

This post has been included in Oregon Information Deschutes County, OR Information Bend, OR Information

76 Comments on Buyer Deceived Because Realtor Needed Commission!

MAR

2007

Thesa, that is a sad state of affairs. I feel for the buyer. He is now probably going to be in default on a contract and may lose whatever deposit he has placed PLUS he is out the property he wanted. This REALTOR(R) should be ashamed of herself.

Bryant - I do not think she gets it... othewise why would she call me for advice.... she truly wants to keep the transaction going. I will not take her calls for fear of hearing "Well Thesa Said" I get enough of that with my big mouth. Thanks for the comment - glad we are on the same page.

Thesa - what a scary and sad story this is. How unfortunate for that buyer to have had the bad luck to work with that agent. She should be more than ashamed of herself. That agent is the type of agent who gives us a bad name as a whole.

Ann

Thesa - do you know her Broker? Maybe a call to that person informing them of the call you received might be in order.....

Ann

I do know her Principal Broker - I am thinking of calling my Principal Broker and have her call the other Principal Broker

Thesa,

You know the saying about ASSUME, right? I get hungry at times too but never enough so to try and put my needs ahead of my client. What was she thinking? : )

Kelli - ASS U ME - you got it.... crazy uh? And my thought is she is telling other brokers about this, before resolving the issue -

Thesa-

You do need to get the Brokers to gether on this one- I'd love to hear what the other one has to say.

Well I bit the bullet - My Principal Broker was busy - and I know the other PB pretty well. I made the call, told him about the conversation, and explained how it bothered me to know this was happening.

His reply - Buyer beware!

I almost hung my license at that company before I interviewed where I am - boy did I make the right decision. Of course what he says to me and does about it are two different things. But he now knows.

This is an another example of an agent not doing her job at a most basic level. And an example of lack of supervision by a PB. Blame it on the buyer? Surely the agent has some culpability. A lawsuit in the making. She should have talked to her PB first and went from there. It speaks to the relationship she has with her PB that she goes outside the company. I've often wondered why anyone would want to be a PB with more than about 10 agents? Sounds like way too much grief for me.

In Oregon we are all Brokers and so we carry more responsibility of our own actions than we did as Sales People or Associates. The agents PB did not impress me when I interviewed with him 3 years ago, he has a lackadaisical attitude and could not make the effort to get my name right. That told me that he most likely would not have much to assist me with later in my career.

Like I said before, I am so glad I did not choose to go to that office.

Wow, you hear of these stories from time to time. And in our own backyard of all places??

John

Thesa,

Don't all Realtors have the same code of ethics across the US? I sit through that class for every licensing period and I am certain that the fiduciary duties we owe our clients have nothing to do with our commission.

I wouldn't want to be associated with that person again either.

Teri - B I N G O

MAR

2007

Another license from a cracker-jack box!

Thats horrible! There is no way to justify that kind of behavior. Various agents like that give Realtors a bad name....

I would like to say that this kind of situation is unbelievable but I know that it happens way to often. As mentioned, this is why realtors get a bad name.

I feel that the honest, ethical agents that truly put their client's interest above all others have a duty to report this kind of behavior. Letting realtors continue to operate this way hurts the entire industry. Way to go Thesa for not getting involved and voicing your concern to her PB. Realtors like you will be around forever and those that do shady things like this will get what they deserve.

I may have found a back door to help this buyer without breaking any ethics. I think I figured out what property it was, and brought the misleading information to the listing agents attention. They know nothing of the area, or zoning. They are changing the listing, so I am just crossing my fingers it helps this buyer.

Who would have thought one would feel obligated to a person they do not even know the name of? At least I should be able to sleep. Now if only the buyers agent is smart enough to use that as an out for the buyer.

The really sad part is that a broker who behaves that way affects us all. It brings us down in the public's mind. I am on a mission to raise the public's impression of the our profession and this doesn't help. UGH!

We are thankful of the majority of real estate agents who are professional and do great jobs with their clients in mind. Glad you were able to take some steps to help the listing agent do her job better.

Thesa- The key point is representing the buyer and treat their money like it is your money. We can never be careful enough. When we are we have very happy buyers!

There is a silver lining with every story... Competition like that can only make you look good... Especially with the Brokers response... Nothing travels faster than a bad reputation.

I heard the was a shortage of fast food workers. You might recommend a new line of work to her.

That is so sad, the buyer thought he had a professional but he was wrong. Here again is another story that helps to give us a bad name.

Well, this is just depressing.

I guess we need stories like this to keep us focused on what is important though. Sheesh.

The sad part is that this agent lacks the ability to see how this could impact future business for them. This is also the type of thing that leads people to the do-it-yourself brokerages. Most people will think that I can do it just as well as this type of agent so why should I pay a big commission.

Not that it matters, but out of curiosity, was there anything in the listing that represented the lot as suitable to be built on?

Assume nothing should be the moral of the story. I can't believe the broker called you for advise. If I were the buyer I would panic - how could the broker be clueless. You did the right thing - I would want to distance myself from them as well.

We can thank shoddy representation such as this for our high E&O insurance rates.

Thesa, this is an outstanding post. Sad situation (truly) but great post on your part. I'm proud of you for asking her to lose your number.

This post is a wake up call for me. Don't get me wrong, I haven't mislead my clients like said broker.

Here is my story. I have a client that wanted a lot of extras in her home. We looked and looked for almost a month before they decided to build. We found the perfect subdivision. They picked the lot. Here is what they wanted: 3 car garage, catwalk upstairs, island in kitchen, fireplace in MBR, 4 BR, 3BA, hardwood floors downstairs, granite counters, media room, sprinkers in the yard and a fence. Not a lot to ask for I agree. But here is the problem, they found the perfect floorplan. It was being built in that subdivision. It needed to be modified a bit to meet their needs. We met with the builder and his agent. The builder said he thought he could modifiy the upstairs for a catwalk. The other request could be worked out as well. The plan was taken to the architect and redrawn. When the plans came back, the builder gave us a price with these exceptions. The house was to big for the lot we wanted, it would fit if we would take a 2 car garage. My client agreed on a 2 car so that he could have that lot. Also, he said he would not pay for sprinklers. Therefore, my client said he would buy the sprinkler system and the builder agreed to let them install it before the sod went down. Great! we have a deal. I wrote up everything as we agreed. Speed forward 2 months, House is coming along fine, one or two little things have popped up, all taken care of. Then one day the wife is out on the job site and says, We bought all the sprinker heads and pipe, what do you want us to do with it? WHAT??? We have a problem. In our contract I wrote " Buyers to have sprinkler system installed prior to sod being laid." The builder, his agent, my buyer and I all meet at the job site. The builder says, I am not paying for a sprinkler system it is not what I agreed to in the contract. My client is angry with me because they said I knew they wanted that sprinkler system and I didn't word it correctly. They agreed to buy the parts, they didn't know they had to install it too. I explained to them yes, I know you wanted the system but you also wanted the 3car gargage and you gave it up to have this lot. Just as the builder said he would not do a sprinker system, so you agreed to talk to the landscaper and purchase it yourself. BIG MISTAKE... My clients said you knew we wanted these things, you should have got me my garage and if you really work for me you will get me my sprinkler too! End of story. I didn't know what to say. At that point I wish I did work for the builder. Now what am I to do? When the contract was written, I went over everything before it was signed. I am looking at trying to find some way to have a $4000. system installed. Oh, I want to add, the builder has a $5000.00 agent bonus on all his houses. I always give that back to my clients for upgrades and I bought the trash compactor for them already so, when does it stop? I work hard for my clients but I can't afford to buy the system as well.

I didn't mean to take over your blog....I just need to vent!

Thesa, I can say I am not amazed at the gall of the agent in question. This might be her only sale this year. I would venture to say this is not the first time she has been underhanded with a client, family and friends. Agents like this never make it as their karma catches up with them.

Well I have a few concerns, First the Realtor isn't looking for a solution in the clients best interest. We have all seen that. Second makes me as k this question....?

As the seller's agent didn't the seller supply the buyers agent and buyer a seller's disclosure statement on the property. If so was there anything in that sellers disclosure statement that stated the problems with the property? The buyers agent didn't read that or did they just have the buyer sign it and give it back. If there is nothing in the sellers disclosure statement about the inability to build on the property, as the buyers agent I would be getting the earnest money back or going to court. The buyers agent is suppose to have the buyers best interest. If there is something in the sellers disclosure statement about the inability to build and the known problems with the property and the agent for their own selfish reasons didn't address them, then the buyers agent should step up to the plate and refund the buyers earnest money to the buyer. It is an expensive lesson but it may make the agent better in the long run. The agents broker also needs to step up and back the agent by giving good advice and working with the agent to take care of their client ( THE BUYER).....

Your response was quit correct. This "Broker" obviously is one of the many who add to the public perception of Realtors being comparible to Used Car Sales Men. Unfortunately, sounds like the buyer is hooked unless there is some kind of free look period during which due diligence can be performed. The "Broker" just might be looking at litigation for not representing her buyers interests assuming she represented the buyer through accessing public information. Unfortuantely you can't police this broker since everything you are aware of would probably be viewed as hear say in an administrative or civil court.

This is a real shame. ME ME ME.. I NEED. The market doesn't care what I need, and I can't make my needs more important EVER. If I take care of the clients as you said, the referral business in the long term will be priceless, and far more valuable than any one deal

OMG!!!

I think everyone should know ther zoning!!!

Thesa:

Guess I don't have anything to add after what everyone else has said. Makes us all look bad. Thanks for sharing - too bad someone would put you on the spot in that manner. Your intergrity is showing!

Jeff

That sounds like a great reason to try and keep a bad deal alive - "because I need the commission"! If she "wakes up" she better planning on covering the buyers out of pocket expenses on this one.

Love it.

We sell in many areas here that are "water oriented". The first thing to do when looking at a lot or house where the buyer may want to add on or even build a deck is take a trip to the county offices and look at the "bog" map the set backs, the well, the septic field is there is one, etc.. You learn these things from experience. But, you get the experience by research and follow through.

Lazy and hungry agents are dangerous to us all.

"Buyer Beware" - great response from this agent's managing broker! These are the types of stories I use to promote exclusive buyer agency. Real estate consumers need a big wake-up call!

Thesa,

All I can say is "Wow". Good for you for telling that agent to remove you from any association with her. That is one story in a million in the sea of agents out there. We do all get nervous about transactions falling apart but to put the person you are supposed to be representing in harm's way is simply inexcusable! Thanks for sharing this sad story with us. It's an eye-opener!

That poor buyer. I can understand a mistake, but this was not a mistake on the agent's part. She's definitely not keeping the buyer's best interests at heart. If I needed money that bad, I would clean toilets (and I have) before allowing my clients to get into those situations.

That is really scary. I hear agents say things all the time like, "Hey if they wanna buy it I am going to let them buy it" even though they know the property has some serious faults. I know that we are not inspectors but we still see things that consumers don't. In these situations, I always explain what inspections I would suggest they do on a particular house (because we can not act as inspectors). Usually they will ask why I would want a 'structural engineer to come look at it." My response is usually just pointing out the crack, or hollowness under a basement floor, or the 3 feet of water in the basement (lol)... But enough to say hey I want you to have these inspections to ensure that the house/property are in sound condition. At that point they at least take the issues into serious consideration prior to writing a contract or walking away.

Thesa.... it's great that you stood up to her. But it also amazes myself, as you mentioned, that she is selling something that she doesn't know much about. I don't sell property, but if I were to sell some land, I would try to understand the positives and negatives of it. Great post and great that you would stand up for what you believe in.

thesa

jeff belonger

AMAZING story. Really. Wow. Good for you Thesa. Times are a little slow right now, but I was just reminding some loan officers that work for me, just today, that "slow times" do not mean that we change our pledge of integrity.

Hi Thesa...this has been an ongoig problem since the beginning of time and it is simply called "Greed". It does amazing things to people and many even sell their souls for it. Every sales industry has it and it is a huge virus. You said the right things to her and did the right thing by walking away form an association with her. Have a great day my friend.

It is pretty awful that both the agent and the pb were pretty cavalier about what they were doing to the buyer. "I need the commission" *shaking my head* that just makes me sick.
Thanks for the post.

Thesa

We're all human and capable of making mistakes. This is malfeasance. She should just send her license back to the commission. Her Broker isn't much better.

Thesa....go girl. Congrats on not just politely ending the conversation, but letting her know she was going off the deep end. We need more like you in the industry to assist in our self policing. And a broker? It only leads to the question, what else is she doing?

It takes all kinds I guess! Give the agents broker a call and discuss it with her. You may feel better after having done that.

Patricia Aulson/SEACOAST/REALTOR/NH & ME

Phew!! It is a sad commentary but their are a lot of agents that have forgotten their responsibilities as the agent. I tip my hat to you for telling her that you don't want to associate with her any longer.

I read elsewhere this morning that only about 5% of Americans rate REALTORS® in the 'highly professional' category when evaluating them. Sounds like it's time for a NAR complaint on this one... people like this help diminish the value of everyone in the business!

I always wished there was a way to keep agents like this out of the business, I would be all for increasing our MLS dues/membership to some high number like $5000/yr vs $400/yr, keep these type of "agents" far away from the business.

Another example of one person making the industry look bad. No wonder we're ranked so low in the eyes of the consumer. Being new to the profession, I'm amazed at how a number of sales people don't take the time to provide the best service to their clients. Like this other broker some are interested in the next commission check

She should get a part time job so she can make clear-headed decisions.

Unfortunately I believe more agents than we think are out there just for their commission and don't take those extra steps to protect their clients or not reveal information to the parties that could affect the transaction.

That treatment will eventually come back to her. Most likely she'll be in another business by then.

Thesa - We've been on the same page on this kind of issue what???? - twice in two days now, or is it three times. What a mess! This is the stuff that happens when brokers, Realtors, mortgage guys, etc. stop just short of the line that says illegal. Unfortunately to get to that point they had to cross the lines that say responsible, ethical, and customer oriented.

This realtor (doesn't deserve a "R") and the PB are the antithesis of the NAR advertisements about ethics. Problem is it's always the stinking bad apple that gets noticed and messes things up for those of you who get it right.

For one, I'm proud of you! You just made it to my associates list if you'll accept the invite.

Thesa,

Way to represent Realtor(R) ethics in your community. We all share the responsibility of maintaining the image of our profession. You know what they say, "If you're not part of the solution then you're part of the problem."

Way to take ownership of this problem for the benefit of all of us!

Team Thayer is your source for Eugene Oregon Real Estate

That is AWFUL!!! I have never, ever, ever needed a commission enough to decieve one of my clients, or do anything that wouldn't cause me to sleep at night!!!!!!!!!!!!!!!!!!!!!!!! I feel so sorry for the client. The agent apparently doesn't care about their dilemma only her own.

When I was new in business my broker told me never to act like I needed the commission. To conduct business like I was a highly motivated regular employee and the commissions would come, no truer advice exists!!!!!!!!!!!

I am from Oregon and my wife and I looked at buying in Bend a few years ago. We now live in CA, but hope to end up in Bend someday (or sunriver). It is scary to look back and realize that we had NO idea how to choose a realtor. Just the other day, my wife said "I wonder how people who are not in the real estate industry choose a realtor?" Ahhh, the question of the century for us, right? But very scare when you read a story like this. I am going to add you to my associates and hopefully look you up someday to buy!

I love to hear stories about people bing here at one time or another - growing up my family owned a mom and pop store that is often mentioned in conversation of reminiscing - they are amazed to realized they once met me behind the counter.

Adding you to my list and hope you will look me up when in the area.

Nice work, Thesa. Way to do the right thing! This won't be the first time nor the last you'll hear this.

Thanks for posting. It seems that greed is the biggest deterrent to doing the right thing so often.

If she did the "right" think for her customer/client, she wouldn't be whining about needing a commission, would she? Shame on her!

Today has been the day for good lessons in what to do and why. I just took the ethics class put on by TAPCAR today. In one of the preamble to the code of ethics it talked about the golden rule "Whatsoever ye would that others should do to you, do ye even so to them."

MAR

2007

Wow-I agree with Lenn all realtors are not the same and clients need to realize that when mistakes are made they are usually very costly - OUCH! I too, love sharing these horror stories because so many people don't know what we do throughout this whole process

Wow - I feel awful for that buyer. I find many people need to be asked, "Who do you represent?" It's unfortunate.

The buyer got the short end of the stick with her. I can't imagine. What a mess she created and all she's worried about is her money. That is truly awful. After this, may be she will no longer be in the business anymore.

A positive thought....she won't be a real estate agent for long. We all need mone, that's why we work (or al least a big reason why). You are not in this indusrty to make a quick buck.

Typical

Wow...what a strange call to take. Good thing you asked her not to call you again. Sounds like a desperate agent! Even more frightening for the client. Whose interests does she think that she is representing anyways? Fiduciary Responsiblilty 101 for that agent, please.

Wow Thesa, it's amazing the level of incompetence available out there. I'd normally say "don't worry, she won't last long in this business" but it sounds like she's already been around a while but this just goes to validate one of the earlier posts about buyers interviewing their agents. It's like any other business, there are plenty of idiots out there. The consumer has a responsbility to weed them out and choose a strong, educated representative.

MAR

2007

Thesa, good job standing for truth. It also sounds like part of her problem is the council she receives from her principle. His lack of integrity and her laziness leads to deception and fraud.

Thesa,

Good for you in doing the ETHICAL and proper thing. Certainly a shame the other agent did not. As an inactive broker and real estate attorney I cringe at the ethics (or lack) of some agents. Plus it only takes a few to ruin the whole apple barrel.

Without pushing my agenda, this sounds as if it would have been a good case to involve an experienced agent (which we seem to have--just lazy or careless) and a knowledgeable attorney. Vacant land purchase seems to be the area that so many people have concerns with after the fact. They didn't know that the County required well/septic, the Road Commission had to approve storm sewer and roads, several municipal divisions will be involved in the zoning, construction, utility, etc. of the build itself.

Glad that you actually called the Broker. You could have let it go, but at least now that broker may watch the next deal and at least save the BUYER some stress, money, and heartache if they catch things early.

NOV

2007

Wow, it's just all so sad.There are so many incompetent people out there representing themselves as PROFESSIONAL brokers/agents.

They just want to show you a house and have you buy it for the sole purpose of them collecting a commission they didn't even earn.They don't preview the house ahead of time to see if it really meets your needs...they really are just lazy people with a lousy work ethic.

I have worked with agents that were really great and really understand what it means to fully represent a client and has concern for his needs. He also understands the laws that govern our profession.

My advise is to choose a Real esate Agent wisely. The same has an Investment Banker that you allow to plan your future. Check out references and referrals like all due dilligence processes. Always beware...

Bill

NOV

2007

There is one broker in our area, that I told as of the start of next year I plan to rewrite my co-broke agreement with them and prefer that from now on please represent the buyer not my seller. I want out of sub agency with some agents and brokers. Thanks for offers but no thanks to problems like you have described.

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