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At A Minimum We Need To Know Our Forms.....Contracts Are In Writing

By
Real Estate Agent with Karen Parsons-Fiddler, Broker 949-510-2395 BRE# 01494165

 

 

 

 

 

Ok.....rough week for paperwork!

Agents are not taking care with writing up offers, counters, disclosures and repair requests. What is going on?

Real estate is not about opening doors with a lockbox key....isn't that what we always say? Then what is it about? Caring for our clients...and care includes dotting the "i"s and crossing the "t"s.

 

Lenn reblogged a post today Always be "apologetic" to your clients. and it triggered my post here.....yes, yes, yes, put it in writing. And don't come crying to me if you "forget."

This week, I've had quite a few problems with paperwork and other agents. It is the Realtor's® responsibility to read and understand the contracts we use. To check the proper boxes and fill in the proper terms. I do this for my client, they need to do it for theirs. This week I've fielded phone calls from outraged agents who are offended that I'm trying to hold to the contract.

These were not about little issues either.....

1) Listing agent accepted offer, opened escrow with terms that the seller would pay a $1050 transfer fee. I hear 2 days before the close that the seller never expected that and it was in the listing that the buyer would pay. It wasn't in the listing....but excuse me, the listing is NOT the contract and wouldn't take precedence over a contract even if it were in the listing.

"well, you must have known we didn't mean to agree to that"

2) Seller accepted the term that they would pay to correct any termite or wood rot found in termite report. Home needs tenting and it's a hefty chunk of work. Now.....seller doesn't want to "agree" to correct. They already have agreed.

"my client isn't going to agree to do that (oh, then why did you put in in writing?)"

3) My buyers wrote offer which included roof repair to fix broken tiles and clear leak in garage. Written clearly on addendum with other terms. Seller signed agreement and then countered us on some terms....roof was not mentioned in their counter. Now, agent says he "meant" to take that out and the sellers assumed he had. What?????

"that was my mistake...sorry, but we need to change it so we can keep this deal together"

Now....my clients have all entered into these agreements based on a written contract. These agents are negligent and yet are putting me in the position of going to my clients, while we have an open escrow, to try and change the terms. These agents must realize we are far enough into the process that it's going to damage my clients to cancel....and I feel like an idiot having to call my clients and essentially tell them they have to cave or cancel.

Is this a ploy to get better terms after the fact?
Are these agents just morons?
Is this a game?

I realize we can hold them to a contract....and my clients can sue for damages. But...I really don't know if this is just incompetence or unethical negotiating.

Comments(35)

KAREN SANCHEZ
Reputable Realty - Apple Valley, CA
...Marketing your home like no one else will.

Karen you aren't a mind reader?  Hum intesterting.  

Oct 21, 2010 12:39 PM
Kathy Kenney
Keller Williams, Princeton, NJ - Robbinsville, NJ
Realtor - Princeton & Central NJ Homes for Sale

Morons for sure, but I've also experienced these morons trying to change the contract after the fact because they knew the Seller wouldn't agree to it up front.  Once you have them between a rock and a hard place it's easier to extract a pound of flesh.  Hope they all work out for you, Karen.

Oct 21, 2010 12:44 PM
Andrew Martin
REMAX Accord - San Ramon, CA

It's incompetance and laziness. I had an agent just write an offer on my listing, and they checked boxes having to do with septic tanks and well inspections etc. and this is a 4 year old home in a subdivision in the middle of a city. No septics, no wells, in the entire area. Out of area agents also don't take the time to learn the standards of who pays for what in our county. And then some offers are almost just blank. Other than price, no check marks or dates or anything. It's all par for the course when anybody with $300 can become an agent.

Oct 21, 2010 12:59 PM
Jose Dias
Home Sellers Help in Scottsdale-Phoenix-Peoria-Glendale - Scottsdale, AZ
Sell Your Home in Scottsdale-Phoenix-Peoria-Glendale-Goodyear

Karen - I know it is hard... But I suggest you approach all issues without demonstrating emotion or frustration. It doesn't help the transaction. I would try to go back to my buyers and explain what happened (without complaining or blaming the other agents and their clients). If you show frustration, your client will probably feel the same way and the issue may escalate. Tell them what happened, advise on their options and let them decide how they want to handle.

Good luck!

Oct 21, 2010 02:17 PM
Karen Fiddler, Broker/Owner
Karen Parsons-Fiddler, Broker 949-510-2395 - Mission Viejo, CA
Orange County & Lake Arrowhead, CA (949)510-2395

Thanks Jose....one of my best qualities is calm in the face of difficult circumbstances. At least that's on my side.

Oct 21, 2010 02:19 PM
Carla Muss-Jacobs, RETIRED
RETIRED / State License is Inactive - Portland, OR

WOW what a week for paperwork, and timely to read the re-blog. So you know you're among friends!!  Lenn makes a good point, do you think agent signed for clients?  That would really be some deep doo-doo then.

Oct 21, 2010 02:50 PM
Karen Fiddler, Broker/Owner
Karen Parsons-Fiddler, Broker 949-510-2395 - Mission Viejo, CA
Orange County & Lake Arrowhead, CA (949)510-2395

I have no idea what everyone was thinking....but this was 3 Different agents, so I'm just wondering if it's a new unethical trend?

Oct 21, 2010 03:14 PM
Susan Haughton
Long and Foster REALTORS (703) 470-4545 - Alexandria, VA
Susan & Mindy Team...Honesty. Integrity. Results.

I won't go into the long sordid details, but this year I have seen this more than ever...and at first, I thought in each case perhaps the other agent was trying to be sly.  NOPE.  They do not have any idea what they are doing AND they don't know the contract.  They are just running around out there putting their clients at risk and causing endless problems.  I wish it would stop.

Good luck with your issues...know many of us feel your pain.

Oct 21, 2010 03:47 PM
Chris Dugger
Real Estate Marketplace - Louisville KY - Louisville, KY
Louisville REALTOR

Karen ~ It must be something going around...have a contract on a listing where the buyer's agent wrote in late possession into the original offer. Usually something that seller's request, we didn't request it and didn't need late possession. I had already prepped my sellers to expect to deliver possession simultaneous with closing. The buyer's agent later had no idea why he wrote it in there and asked to have it changed back. We're past inspections and everything...like you I don't want to go back to my sellers asking for a change in terms.

Oct 21, 2010 03:55 PM
Margaret Rome Baltimore 410-530-2400
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

I had an agent, one week before settlement ask for 6% towards closing costs because the buyer did not realize how much they needed to bring to the table. That could be another blog.

Margaret

Oct 21, 2010 04:17 PM
Leslie Ebersole
Swanepoel T3 Group - Saint Charles, IL
I help brokers build businesses they love.

Karen: No matter how much stress there is, the contract is supposed to remove the emotionalism....and one of us can't break the law to cover the other side's mistake. To ask you or me to do otherwise, in order to "keep the deal together " is collusion or complicity or something else tricky sounding. It does seem to have been a week of full moon behavior.....

Oct 21, 2010 04:20 PM
Robert Slick
Beach and River Homes - Georgetown, SC
NRBA, RDCPro, Trident/CCAR MLS

It all starts with reading the contract as it goes back and forth. Unfortunately some things get overlooked sometimes. It's all there in black and white.

Oct 21, 2010 05:22 PM
Dan & Laurie Pittsenbarger Team
Keller Williams Western Realty - Bellingham, WA
Lakeside & Coastal Single Family Homes

Karen. I don't read Active Rain daily but I have read several of your post in the past. You're a great Broker/Agent and I'm positive you will come up with a great solution.

At least in our market, buyer's are pretty golden. You could try simply holding your position on the contract and see if the seller's actually pull the plug. Or if the issues are relatively small with respect to the buyer's agent's commish (they could cover it)- that may be a solution that keeps both the clients happy and the proper party handling the problem they created.

Oct 21, 2010 05:28 PM
Gary Frimann, CRS, GRI, SRES
Eagle Ridge Realty / Signature Homes & Estates - Gilroy, CA
REALTOR and Broker

Oh Karen, I feel your pain.  "What part of the contract that you signed that you now do not want to go along with?"
Actually, I blame their Brokers.  They get so busy sending out there into the public with little or no understanding of the contract.  They emphasize marketing way too much.  Get some foundational knowledge, the marketing can wait a week.

Oct 21, 2010 05:41 PM
Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 714-319-9751 DRE01267479 - Costa M

This sounds like it's been an utterly frustrating week for you.  Unfortunately, there are others who don't take as much care as you do with their contracts.

Oct 21, 2010 05:56 PM
Bob & Leilani Souza
Souza Realty 916.408.5500 - Roseville, CA
Greater Sacramento Area Homes, Land & Investments

How awful, Karen...and I'm sorry that you have to go through this with 3 different agents at the same time. :(

Leilani

Oct 21, 2010 08:20 PM
Joyce Godwin, Realtor, CRS
RE/MAX Elite Properties; Serving Cypress, Spring, Tomball, NW Houston - Houston, TX
RE/MAX Elite Properties

Hi Karen,

I know exactly how you are feeling.  I find that it is, unfortunately, very common.  I am amazed at contracts I receive sometimes also.  I think an annual contracts class should be mandatory - going over each and every blank, what it means and the importance of filling it in correctly.  This really shouldn't be necessary, but I do think it is.  It's not just agents, either - sometimes brokers are guilty as well.  I also don't think the agents who DO thoroughly go over their contracts should have to police the ones who don't. (Just wondering, did you mean for this to be members only; I am somewhat new to AR, but it appears to be public - I could be wrong - and maybe you meant for it to be public.)  I hope your contracts get remedied to you and your clients' satisfaction! 

Oct 22, 2010 01:59 AM
Tamara Schuster
Naperville Glen Ellyn Lisle Plainfield Wheaton Illinois - Naperville, IL
Realtor Broker - Naperville

Great Post

Oct 22, 2010 07:59 AM
Brian Bean
The Dream Big Team at Better Homes and Gardens Real Estate Champions - Riverside, CA
Homeowner Advocate, Dream Big Team, S.Calif

Unfortunately, the qualifications to get a real estate license begin at the ability to fog a mirror. As long as they can pass a test, they are off and running.

I think it's case by case in these situations, but I wouldn't be above getting brokers involved.

Oct 23, 2010 03:18 AM
Karen Fiddler, Broker/Owner
Karen Parsons-Fiddler, Broker 949-510-2395 - Mission Viejo, CA
Orange County & Lake Arrowhead, CA (949)510-2395

You're right Brian...at this point all the brokers are involved and at least one attorney. When you have 3 different deals in this state with closings before the end of the month...it's stressful.

Oct 23, 2010 04:16 AM