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Need legal advice yes I know I need to contact an attorney! but wanted a realtors view~!

So a few months ago , I asked what the common referral fee was for helping me out with one of MY CLIents.

I was out of town and asked a realtor "friend"... to show a house or two over the weekend while I was on vacation.

She showed them 3 or 4 homes, however my clients didnt end up buying any of the ones she showed them. Now the lady has an attorney friend of her sending me a letter saying she is going to sue me for 40% referral fee which I didnt agree to, I didnt even agree to 25%, bottom line she doesnt have anything in writting, and I told her id give her a few hundred for helping me out, im not a jerk but she wants 40%. The attorney says verbal agreements are enforeceble with enough witnesses which there were NONE! He says he has witnesses, what do I do??? Please help

Posted by Jason Robu on 09/02/2008 05:48 PM

Comments (12)

Post is included in group: ETHICS and the REALTOR
Post is included in group: Realtors®

12 Comments on Need legal advice yes I know I need to contact an attorney! but wanted a realtors view~!

SEP

2008

I would try to work something out with your "friend". She was doing you a favor and you should pay her for her time. If you agreed to give her a % then do it.

Aloha Jason,

I think that you need to chose your friends a little better. These kind of things are best worked out in advance. That is why we have referral agreement written on paper, spelling out who does what and what the referral fee is. It's the same concept as a purchase contract. If you have it in writing then there is no disagreement. A 40% referral fee for showing 4 homes is out of this world. Is your friend a new agent or just crazy. If you have a friend who is a lawyer it is easy to have them send out a letter threatening you and probable doesn't cost her anything. The real question is what did you promise her. That is what she is due.

Ouch, what kind of friend is this person? Did you and she have a major blow out before the attorney got involved? Did you agree to some kind of fee for showing any houses? If she didn't show the house that the client bought then I would pay her on her time. Everything needs to be in writing is my guess - do you have a legal hotline? Sounds like a bullying technique. I'd ask her how many hours she put into it and pay her $20 an hour - that is how I do it.

She didnt even give me the referal it was my client, we never verbally agreed on anything it was always up in the air? we dont have anything in writting and no one heard anything, I agreed to pay her hrly, for her time of 4 houses, and she wants 40 percent , i think she is taking advantage of me for being a new agent!

Thanks guys

any other suggestions call me 8647875694

Jason Robu

I told her I would pay her 25% and that was only if they made a contract on a house she showed, I dont know where she is pulling this 40pecent out from, I spent 3 months with these clients and she is crazy! I told her if they didnt buy one she showed them , then id pay for her gas or hrly. like couple hundred which i still feel she deserves but not acting like this.

Always before you ask another agent to handle your business or showing buyer's you should get the agreement in advance. If you agreed to 40% or whatever, pay it. How much is the friendship worth to you and do you really want to have other agents afraid you won't pay them?. If you had it in writing, after all we know verbal contracts don't hold up in court all would be well. I know for me I would pay and move on, my reputation with agents and the buying public is important to me before money. Lessons learned are sometimes expensive. Just my take, good luck.

That is an unfortunate situation. It sounds like that agent hasn't sold anything for a while and is trying to cash in on your "friendship". Also, sounds like a slimey lawyer. Are you both at the same company? Sounds like you need to tell your broker( unless you are the broker), and talk to her broker.

Ask for a signed/sworn statment from supposed witness. I would say this agent is obviously desperate and attnys just blow alot of hot air but if someone calls them on the carpet they usually just go away. If the situation happend as you say it did then I don't think you have anything to worry about - but unfortunatly they are probably relying on you doing the math and figuring out that 40% is less than what it would cost you to clear your name. Could you speak with the Real Estate Board - I know here we all agree to take issues like this to the board before we take legal action.

Best of luck!

Jason,

All attorneys beat their chest and frankly lie about what they can or can't do. I just sued my previous broker and went through all that. I didn't back down, they did. Have the other agent try to find a judge that will enforce a verbal contract. Not to mention the burden of proof is on the other agent. Since there was no formal agreement there is no case. I really upset my previous broker's attorney when I laughed and told him that if his client wanted to continue to pay his billable hours on a case they wouldn't win I had no problem with that. He went balistic and said he just might defend them for free (Sure) Shortly after that they settled. Stick to your guns. Rewarding bad behavior only encourages the individual to continue.

Next time be more specific about what you will pay for a sale ve just helping and document it in an email. In this instance offer 25% now or nothing at all.

Be careful who you qualify as a friend!

If it were me - I would ignore her - her attorney - and go about your business. If you promised to pay her for her time - pay her for her time - with a check - and be done with it. I have received letters from attorneys in the past threatening me with all kinds of things. Because I know the truth and can support the facts - I ignore them. A letter is just a letter - I believe responding to a letter is only inviting more of the same. An actual law suit or other legal action brought against a person is a different issue.

We cannot be too careful - even among "friends." As others have stated - get it in writing!

At the risk of stating the obvious - find someone who can be trusted to cover for you when you are out of town. I cover for agents and do not charge them - and they cover for me and do not charge me.

SEP

2008

Jason:

Let me preface my comments with two statements.

1. I see value in the ActiveRain network. This really helps with building a nationwide network and meeting new friends from across the country.

2. I AM NOT AN ATTORNEY!

Jason:

From my brief analysis, there haven't been any comments made by any South Carolina agents.

In South Carolina, we have something called The Statute of Frauds. The statute of frauds merely requires some memorandum or note of the agreement relating to real estate to be in writing and signed by the party charged therewith or his agent, and does not require a formally executed contract." The writing must reasonably identify the subject matter of the contract, sufficiently indicate a contract has been made between the parties, and state with reasonable certainty the essential terms of the agreement. One exception would be AN ORAL LEASE that can be enforced within one year. This agreement doesn't have anything to do with a lease.

If you told her "I would pay her 25% and that was only if they made a contract on a house she showed", then that would be the basis of the argument. However, I see this as a HE SAID - SHE SAID situation. That's not a strong argument in a dispute without a written agreement. ONCE AGAIN....I'm not an attorney.

In the end, you'll be the one that has to make the decision. However, I'll make one more statement. Friends and business does not make a good blend. Remember this situation and my statement in the future. You might be better served to operate under that mindset.

Good Luck!

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