I don't care WHAT the instructions are... you WILL submit the offer...

Whoa, that is the first I have seen that in the instructions.  In my marketplace, we have only 1 real estate office who is notorious for placing stuff like that in their instructions and then attributing it to their vendors wishes.  While I can see that there may be some benefit to the client, there is clearly more benefit to the agent and his mortgage associate, which is the more likely reason for this to occur.

I hope you nail them on that as being an illegal practice before it spreads.

HI Lane,

I hate reading those remarks in MLS as well.  When I see that I move on to another listing that doesn't require that.  I think that is BS.

Wow - great post. I don't think you are a butt-head. I think you have the intestinal fortitude to speak the truth and speak it boldly. We need more people willing to do the same. What you write about is happening here in California - as I suspect it is all over America. Those who feel they have the keys to the kingdom also feel they have the power to rule it. We have seen the rise and fall of those who attempt to use power they only believed they had however without the authority to use it!

Hi Lane~  NO ONE can force any buyer to use a specific mortgage company!  As long as the buyer can get a mortgage, they can buy the house.  What about those that are paying cash??  They can't write an offer and buy it?  Sounds pretty crazy and unlawful to me!  We are to follow seller's legal and lawful instructions.  We (nor sellers) are not to dictate that a buyer has to use a specific mortgage company!! 

I believe agents are doing their sellers a serious disservice when they try to force a buyer to prequalify with a given lender. If that turns away even one potential offer, you are failing your seller.

What about the reports of the lenders running credit many times and thereby lowering the score on a borderline buyer who did not want to use the "required" lender?  There are shenanigans galore.

Wow, Lane.  It seems to me that the agent was doing their client quite a disservice either by 1) requiring that the buyer go through only one specific mortgage company or 2) not letting their client know the ramifications of limiting themselves that way (if, indeed, it was the seller's request).  Either way, not a smart way to do business, especially if you can lose your license over something so easily avoided.

Lane there are two sides here.  Firstly I agree whole heartily that an agent is in violation of RE laws if they don't submit an offer - we are obligated to submit all offers. Period. 

However due to all the online, out of reach, unknown lenders out there that buyers go to get their pre-qual letter from I don't think it's out of line that the seller requires that they be qualified with a lender of the seller's choice.  That's not saying they have to use that lender.  Just that they (the seller's) want a pre-qual/pre-approval from someone they know and trust.  Is that a power play?  Not meant to be... just a precaution.

Lane- Haven't seen this in our area, but it is against license law here too as all offers will be presented.  I know this doesn't happen all the time, but it is the law.  Better be sure to not get caught if you are not following it.

Lane, how about this one?

Buyer agent to pay 1900.00 fee to the listing agent.

Not allowed but still in the MLS.

Lane - we see it here too. Usually it just says "must prequalify with xyz...." we went all out for one of our buyers, well actually we just did want we needed to do for the best interest of our client. The buyer loved the house had a very strong preapproval and the listing agent insist on must prequal bla bla... had even a separate document to sign for that. Yeah, I don't think so. Our buyer eventually got their approval to stick (much disappointment to LA). Seller had nothing to do with it. That reminds me there were so many other issues with that deal. ~Rita

Lane...this is so right. This offer not presented thing does not work for me either. We all need to crack down on each other!