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Predatory or Protective? The Tale of the Buyer Broker Agreement

Reblogger Susan Goulding
Real Estate Agent with Mountain House Real Estate

Great lesson to be learned her.  Buyers and Seller need to READ what you are signing. At the very least make sure the REALTOR you are working with explains in detail what you are signing. 

Original content by Susan Goulding 01490605

Predatory or Protective? The Tale of the Buyer Broker Agreement? You decide....

Tracy CA Realtor - help with short sales
Once early in January of 2010 there was a young couple, Mr. & Mrs. Tracy  First Time Homebuyer.  They called Mr. Tracy Listing Agent wanting more information on a property he had listed.  They knew he had it listed because his sign was in the yard.  

Mr.Tracy Listing Agent told Mr. & Mrs. Tracy First Time Homebuyer that he could not give them ANY information about the house for sale in Tracy, CA, nor would he show them the house until they signed some papers allowing them access to the property.  Mr. and Mrs. F.T. Homebuyer wanted desperately to find a new home and they quickly signed all 15 pages and gave them back to Mr. Tracy Listing Agent.  

Included as an Agency Addendum, a Statewide Buyer and Seller Disclosure and an Exclusive Buyer Broker Agreement.  Mr. and Mrs FT Homebuyer when they asked what they were signing were told "Standard contracts that will allow you entry into the property."

Two days later Mr and Mrs. Tracy First Time Homebuyer met with Mr. Tracy Agent  and he showed them the house.  They didn't like it, it was over their budget, so they said, "No Thank you."

Over the course of the next 6 months they occasionally received listing electronically sent from the MLS from Mr. Agent, but other than that they never heard from him again UNTIL..........

On a hot August night in 2010 when Mr & Mrs FT Homebuyer were having dinner with some friends who had just bought a house Mr and Mrs FT Homebuyer said how they were so sad that they had not been able to find a house, that Mr. Listing Agent never returns their calls and they needed a new agent.

Protecting your buyers in Tracy CAMs. Buyer's Agent being a very good friend of Mr and Mrs First Time Homebuyer was highly recommended.  By October, 2010 Ms. Buyer's Agent had secured Mr and Mrs FT Homebuyer a new home and everything was wonderful UNTIL.....

Mr & Mrs. FT Homebuyer received a phone call 14 days after they moved into their new home.  They owed Mr. Listing Agent 3% of their home purchase.  Yes, he claims they signed a Buyer Broker Agreement that stated if they purchased ANY HOME IN CALIFORNIA for ANY PRICE BETWEEN $1.00 - $1,000,000,000 within a year of the signed contract.

I'm not sure the scenario above protected anyone except Mr. Listing Agent's pocket.  Yes he scans the Tax Records weekly looking for his "clients" who have purchase a property without using his services.  Did Mr. Listings Agent keep his part of the contract?  Did he do his fiduciary duty to Mr & Mrs FT Homebuyer?

What do you think?  What would you do?


Cell: 209-914-5573 | Direct: 925-679-5573 | Fax 925-226-4645
email: Susan@SusanGoulding.com| website:  SusanGoulding.com
Tracy & Mountain House, CA  | License Number 01490605 | Keller Williams Realty

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About the Author...This article  was provided by Susan Goulding, a Nationally recognized Realtor and Certified Short Sale & REO Specialist.  Susan can be reached via e-mail at Susan@SusanGoulding.com by cell phone or text message at 209-914-5573. Susan has helped hundreds of people buy and sell their home.  For Northern California real estate and homes see www.SusanGoulding.com.   If you need to Short Sale your Tracy or Mountain House, Northern California home please contact me for more information or visit www.ShortSaleMyTracyHome.com

Specializing in the following Northern California Communities: Tracy, Mountain House, Livermore, Brentwood, Oakley, Pleasanton, Danville, Patterson, Lathrop, Manteca and Ripon.  Keller Williams|Tracy|Mountain HouseTracy, CA |Homes for Sale Tracy CA |Short Sale Tracy CA |Foreclosure Tracy CA |Tracy Real Estate | Mountain House Real Estate | NorCal Real Estate

Melanie Ross
Coldwell Banker Solano Pacific - Benicia, CA
Benicia CA & Vallejo CA Real Estate, 707-319-2828

I think the agent uses the broker agreement in a fashion that is predatory knowing full well what his intentions are.  and hoping some homebuyer will cave in. What a snarky lowlife and I think of a couple of other worthy words of such a person.  What little self esteem he must have to resort to this.  ok i will stop.  I hope the homebuyers report him even tho legally it is a different manner.

Nov 08, 2010 11:36 AM
Cindy Westfall
Premiere Property Group,LLC Portland Metro & Suburbs Oregon - Tualatin, OR
ABR,GRI Your Tualatin & Portland Metro Real Estate

Hi Susan, I am thinking that the listing agent might just use this as his form of making money since he scans the tax sheets and most definitly should have been very clear as to what they were signing but, I also have to say the the buyers that wanted to look at the home have to own up to responsibility for signing all those documents without question. Was the $ figure clause in the broker agreement clearly stated...or in very tiny print on the bottom?

Nov 08, 2010 12:04 PM
Susan Goulding
Crown Key Realty, Inc; Tracy & Mountain House Sales and Property Management - Tracy, CA
Northern CA - Tracy & Mountain House Real Estate

Melanie - Legally they may not have a case.  However, I still think he has a fiduciary duty to do SOMETHING -- doesn't he.  If not, then why don't we all just sign people up for the next 10 years, never do anything and collect money.

Cindy - no dollar figure One Dollar to a Million Dollar purchase for one year anywhere in CALIFORNIA - and California is a really big state.  Of course he's willing to "settle" with the buyers.

 

Nov 08, 2010 12:49 PM
Cindy Westfall
Premiere Property Group,LLC Portland Metro & Suburbs Oregon - Tualatin, OR
ABR,GRI Your Tualatin & Portland Metro Real Estate

Susan, this agent is predatory for sure..never heard of such a thing, but even still.. amazing that the buyers signed this. I can only assumed they trusted that he was acting ethically. This was certainly over and beyond just to preview a home!

Nov 08, 2010 04:34 PM
Jack Mossman - The Nines Team at Keller Williams in Lodi
The Nines Team at Keller Williams in Lodi - Lodi, CA
The Nines Team in Lodi

Susan ... you hit the comments jackpot on this one ... and not even featured!  Good job of shining a light on a slovenly practice!

Nov 09, 2010 01:15 PM
Susan Goulding
Mountain House Real Estate - Mountain House, CA
Short Sales, Mountain House Homes for Sale

Cindy - Buyers tend to trust as professionals...

Jack - yes lots of comments not featured :-(  I have to stay ahead of you.  

Nov 15, 2010 06:23 AM