I want to fire my real estate agent and buy the same property?
Sunday, March 28th, 2010 at
12:30 pm
I put an offer on a house in a short sale situation and now the porperty is going REO. to amke a long story short, I want to fire my agent for non-performance and buy it directly from listing agent. What are the legal issues involved if We buy the same house. I have signed a Buyer Agreement that expires Aug 1 2008. Do I need to worry if I buy the same property with someone else?
Tagged with: real estate
Filed under: REO Properties For Sale
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You’re going to have to wait until after your agreement expires. It is a contract that you signed and you incurred certain liabilities, such as the right to earn his commission on the sale. You can’t “fire” an agent.
Since you have a signed buyer agreement then your real estate agent can take you to court for lost commission. You say the property is going REO so does that mean the seller doesn’t have the legal right to sell the property? If the house has been foreclosed on and the seller has lost possession then it will be a while before the bank lists it for sale by which time your buyer agreement will probably be expired. That is assuming the current listing agent has a signed listing agreement with the owner who is losing the house and not with the bank that is foreclosing on the house. If you know which bank owns it then wait until August 2nd and call them directly and tell them you are interested in buying it. Banks like to have proof of funds when they sell foreclosures so be sure to have a pre-approval letter if you are getting a mortgage or a letter from your bank if you are paying cash.
You can on Aug. 2. Until then you would owe full commission to your agent. However, I never recomend anyone to use the sellers agent! The sellers agent is working and being paid by the seller. If your not happy with your agent- get another buyers agent- don’t sign an exclusive buyer agreement though- they are not required.
You need to check with someone VERY familiar with the real estate contract language in the state in which you reside. You indicate that you have already placed a written offer on the property in question. There MAY be language in that Buyer Agency Agreement which provides commission protection to the Buyer Agent for a LONG time after the actual Buyer Agency Contract expires (in my state there is such language, and it protects the agent for one full year after the original offer was written)
Your situation is further complicated because your next offer will be on the same property, but to a different owner (the lender). Do not move forward with a different agent without fully explaining what you have done and now intend to do. A quality agent will be able to tell you if you have an issue or not.
Now, to add more stress to your situation, you are taking a risk in losing this property by allowing it to go to REO and be listed. The listing agency’s agents will have access to the listing for several days before it becomes public. Someone ELSE might write the successful offer before you get a chance to do so.
Your best bet ? Talk to the managing broker of the agency in which your current Buyer Agent works, and ask for a different agent in the same firm. The Buyer Agent contract is with the agency and not with the specific agent. If you stay with the same brokerage firm, the only thing which will change for you is the agent with which you work. Your buyer agency contract issues will disappear.
You don’t need to worry. The listing agent is the one who will have to pay the agent you fired.
July 26th, 2008
I want to open up and say that I’m not an attorney, nor do I practice law in any form or fashion. I would also tell you to seek legal council before proceeding. All coments and statements are opinions of LeRoy Nellis II and should not be taken as legal advice….
Now with the disclaimer out… I don’t know the relationship that you have your agent? So I’m going to through out some suggestions of what I would do. I would think that the ethical and to avoid a future lawsuit is to be honest with the agent and tell them exactly what you plan on doing. Let them know under whatever the situation is, that you don’t feel comfortable for them to represent you after your contract expires.
If they did the negations on the deal with the lending institution, you may want to feel them out on which way they would proceed. If they do get upset then offer them some monitary form of payment say $500.00 for their time. If that doesn’t work you may want to just go and do another deal.
Its always better to be honest and upfront with people, and avoid a future lawsuits down the way.
Good Luck and let me know if I can help you in the future,
LeRoy Nellis II
CEO/Nellis Investments, LLC
http://LeRoyNellis.com
http://NellisInvestments.com