A HUGE Lesson for a Listing Agent AND Expensive!

A HUGE Lesson for a Listing Agent AND Expensive!

We are down to the wire with a closing this week.  This has been a long escrow period yet everything on my Buyer's side has been smooth as silk.  Her Lender has kept everyone in the loop and the communication has been great.

So we are down to the final week and the agreed upon repairs per the Amendment are just not right.  The receipts that were provided are generic at best and upon further investigation, the contractors are NOT licensed.  My Buyer of whom is extremely thorough and has every right to be did some investigation and did indeed verify through the state that the electrician and the plumber were not licensed.

The electrical and plumbing issues were both safety related which now really raises some concern.  Through our investigation we discovered that the Sellers have moved out of state and therefore the Listing Agent has been given the task of arranging the contractors and making sure the repairs were done.

The Listing Agent told me that she took the Amendment to the house and showed it to the contractors so they could complete the work. 

 

Here are the concerns:

1. The Amendment will say something like this:  "Per the Inspection Report in Exhibit A. item I. G. Electrical panel repaired and or replaced."  Unless the contractor has the ACTUAL Inspection Report which clearly shows the item and explains fully the repair needed, the contractor will have NO idea what to do.
2. The Listing Agent is now the one responsible for making sure that the contractors SHE hires are properly certified or licensed.
3. She has had the Amendment for the repairs for 2 months and waited until the week before closing to get them done.

In Texas, we have a new clause in our contracts.  It clearly states that ALL repairs by the Seller shall be done prior to closing and to be performed by persons who are LICENSED!  If not completed properly or at all the Buyer can extend the closing up to 15 days in order for them to be done properly.

When I mentioned this to the Listing Agent, her comment was and I quote, "Oh, well I used an OLD contract that did not have that in it."  OMG!  First of all, I prepared this contract and YES it is in there. Secondly, we are ALL responsible to use current, up-to-date contracts!

She then continues to dig the hole deeper by saying that in all the 20 years she has been doing real estate, she has NEVER asked for license numbers from any contractors.  Furthermore, she says that my client is anal and being difficult!  Really?

Now this agent clearly is finding her panty hose in a twist for sure!  Rather than admit she did things incorrectly, she continues to try and get out of this mess by putting the blame on everyone else.  Sometimes we just have to stand up and admit that we are wrong and make it right.

My client has every right to want the work done on their future home done correctly and safely.  No question about it.  And they do have the right to ask for the extended closing period of which the other agent is against as she put it.

I know this is long but the IMPORTANT MESSAGE IS THIS:

• If you are a listing agent and arranging repairs for your Seller, be careful and make sure you are using bonafide, certified and licensed contractors!
• KNOW YOUR CONTRACTS!  There is no excuse for any agent in this business to NOT know the content of a contract.
• Be prepared to pay for the correct repairs using the correct contractors at YOUR cost if you are having to do the repairs all over again.  You told your Seller you would take care of the items and the contract clearly states using licensed individuals.

I don't know how this will pan out but will keep you posted!

Paula L. McDonald ~ REALTOR^®

Broker ~ Managing Principal

        9595 Six Pines Drive, Suite 8210 ~ The Woodlands, TX  77380 ~ 936-203-0279

Selling The Woodlands real estate and surrounding areas!

Paula@ChevauxGroup.com

 

Copyright 2011 Paula Hamilton~McDonald