Another property appears (seller B) that is a lower property, but still meets the customer`s requirements. The client makes an offer that is accepted and delivers the $15,000 deposit. This is a cash transaction that is only subject to inspection and preparations for the conclusion have immediately begun. Two days later, the agent receives a call from Seller A, who repents of not having negotiated two months earlier, and suggests that they will now accept $1.1 million. What should the agent do next? What would most buying agents do? Monty`s answer: The buyers` agency (and the sales agency) is a concept in the law. Agency law varies a bit from state to state in statutes, but my experience is that interpreting importance is often a challenge. When the statutes are indicated; “The agent must be loyal to his client and keep the client`s best interests ahead of any other party, including the agent`s interests”, this clarity can be helpful. However, the power of withdrawal is not one of them. Termination of a buyer agency contract may violate the broker`s rights of the contract. In this case, the broker can claim compensation for the damage suffered by the cancellation. Damages suffered by the broker can usually include reimbursement of expenses incurred by the broker, such as. B mileage charges, other out-of-pocket disbursements and a reasonable amount for the broker`s time and services.
Seller B accepted the $US 15,000 award and signed the release and the customer purchased the house from Seller A. If the agent had withheld the phone call, the chances that the buyer`s client would ever know about the conversation would be very slim and the agency`s right would be very confusing if it were to offer a clear solution. If that buyer had gone the other way, the buyer wouldn`t own the home they really wanted. The clear driving force here was not the agency – it was the know-how and honesty. Regardless of the agency contract, there are certain things that ALL agents must do for a buyer: The truth: A buyer`s broker can offer or ethically recommend that the buyer ask the seller to pay a portion of the buyer`s entire fee, in accordance with Article 16 of the Code of Ethics and case interpretation NAR #16-12. The buyer may make the offer subject to the seller`s payment of the buyer`s brokerage fees on behalf of the buyer as the seller`s costs at the time of conclusion. When developing the rules for the offer to purchase, the buyer`s brokers should indicate whether the amounts paid in accordance with the offer are in addition to the remuneration offered by the broker or whether they are being replaced. The language in the offer in which the buyer told the buyer`s agent to refuse the MLS indemnification offer is a good start, but this language alone is not enough.
The buyer`s broker should inform the listing broker directly, preferably in writing, if the buyer`s broker waives the remuneration offered by listing broker. Otherwise, the buyer`s agent could receive a double fee – once from the seller based on the language purchase offer and again from the listing broker via MLS….