Dispute Between Real Estate Agents - HELP!!!

[tech/a]

Smurf.
Agent 1 can prove he introduced you the the property.
The problem is with the vendors,however if they DIDNT sign sole agency agreements with any of the agents,I doubt that agent 1 will gain full commission.
In the end its likely to be a negotiated amount.

Back when I was in my early 20s,I had a property on the market for 2 mths.
The agent seemed to be doing very little each open the same story,plenty through but no contracts.
So I told them to get lost.
I ran my own open and had a contract that night.I sold it at a discount equal to the agents commission.

As I had a sole agency agreement the agent sued me for the commission.
I settled with him on 50%.

Agent 1 has done some work and your vendors are pretty keen to sell---with 3 agents.
I doubt they will let your contract go.
You have a purchase contract
If its signed by you and the vendor its a binding contract and doesnt matter what their fight about agents commissions leads to.
You have a deal provided you dont cool off.
Force the contract if you have to.

 

[tech/a]

What happened?

 

[clowboy]

Smurf,

I thought you where rather bearish on property?

If you don't mind me asking how come you are trying to buy and for what reason? PPOR or IP?

 

[Prospector]

Hey smurf - post your question here:

http://www.somersoft.com/forums/index.php

Lots of RE's on this forum.

 

[Smurf1976]

An update on the situation. Thanks to all for your replies.

The vendor finally signed a contract last night. I've signed it conditional on finance (approved today) and building inspection (next week). So it looks as though it's all sorted as far as the house is concerned.

The agents have come to some sort of agreement over commission, but not without me writing a 3 page letter stating very clearly that I expected a prompt and professional resolution to the matter. My interest there being that the vendor would not sign the contract until they were sure they wouldn't be paying two commissions.

I'm not sure of the exact deal between them, but both agents have told me they are getting something out of it. Agent 1 will record it as their sale and the contract was signed in their office.

As for my views on the property market, I'm reasonably bearish relative to other assets but investment isn't my reason for buying. It's for owner occupied not an investment property. I've got to live somewhere and, all things considered, this place is pretty close to perfect.

 

[Stan 101]

great news, Smurf. All the best with the builing and pest and here's to a fast settlement..


cheers,

 

[Julia]

Good to hear of the satisfactory outcome, Smurf.

All the best for many happy years in your new home.

 

[Happy]

Great result so far.

If inspection OK, hope it is your best home ever

 

[blablabla]

Hi Smurf, glad you got it sorted out ok.

Had some interactions on the same subject recently with estate agents in Qld, so here is some info which may be useful to Queenslanders.

First point has already been made by others but is well worth repeating -
don't believe a single thing an estate agent tells you unless you can verify it independently, even if you have known and respected the agent for years.

Assuming your story had happened in Qld:-
Whether Agent 1 is entitled to commission is determined by the wording of the
listing agreement the vendor signed with Agent 1. In Qld the form is called a PAMD form 22a "Appointment of Real Estate Agent". There are at least two different versions of this form, one produced by the Dept of Fair Trading and one produced by the REIQ (Real Estate Institute of Qld). The REIQ version requires the vendor to pay commission to an exclusive agent if the buyer was introduced to the property by anybody at all during the period of the sole agency, even if the buyer does not buy the property until after the sole agency has ended. So, if this version of the form was used then Agent 2 is actually the agent in the wrong if Agent 2 was aware of the previous dealings with Agent 1. Of course if Agent 2 didn't know about the previous dealings with Agent 1 then there might be some problems, but the vendor would have known and should have informed Agent 2 as soon as Agent 2 gave the vendor your offer.

The main difference between the REIQ and govt versions of the PAMD 22a relates to the point in time that commission becomes payable. In the govt version, the date when commission becomes payable is negotiable and is usually filled in as "at settlement". In the REIQ version the date when commission becomes payable is when the contract becomes unconditional. Contracts that fall over after becoming unconditional but before settlement can be very expensive for vendors if they had accepted a lower-than-normal deposit. Beware. Also, don't assume that the REIQ acts in the best interests of anybody other than estate agents.

 

[adobee]

If laws in Tasmania are similar to NSW the case is as follows -

Agent 1 has an expired agency still valid unless terminated in writing
Agent 2 has an open agency also valid until terminated in writing

At this point in time you have not exchanged so there is no implication as yet for the owner as they havent signed a contract.

Agent 1 is entitled to the comission at this stage there agency is current and they introduced you to the property no question. (Agent 1 should have presented your details to the owners when they put in your offer,, ie registering you as there buyer. Agent to should have been more switched on and the vendor should have immediately told agent 2 you have seen the property with agent 1 and you are there buyer. Agent 2 could then have said to agent 1 hey we know your buyer we can get them over the line if you split the commission.

At this stage the vendor could be liable for two comissions however if you have signed the contract stating you were only introduced by agent 2 then they could hold you up for some of the liability (I have never seen this happen though).. If the vendor is responsible for two comissions its not your problem really.. aside from if you signed a statement as above...

What you need to do -

1.) If you have signed a contract get it back ASAP - it has not been exchanged so they have no right to keep it. I will only sign a contract with a condition that it is exchanged within 48 hours or the offer is off. You want to get this back as while they have it they can now execute the sale at any time (unless it has cooling off) most dont now days under a sect 64 certificate. Get the contract back, especially to check if you have signed to say not introduced by any other agent.

2.) Contact agent two (if this is your preffered agent) and have a confidential chat with them. Advise a) you understand the problem b)you want to buy the home c) you with draw your offer d) Have the the agent talk to the owner, withdraw the property from the market and send letters terminatiing all agency agreements. Wait about 30 days re-appoint the agent and then progress with the sale.

or 3) repeat step two but deal directly with owner no agents (owner details will be on front of the contract)

or 4) Advise the agents - hey I dont care about the property that much either split your commission 50: 50 agree and proceed or I withdraw my offer all together and will look for something else. Then withdraw the offer then approach agent two for step 2).

But get the contract back asap first thing.

(You need to refer to council records to check property sized try rpdata.com etc google earth is not acceptable)

The first agent you deal with and are shown the property by is the agent you are introduced by.


Caveat Emptor - Buyer Beware

Its like shares do your own research dont believe anyone.

 

[adobee]

I got bored before I read the bottom posts...

Good its all sorted..