Real Estate Agent in Breach of Contract?

[colson915]

What is the name of your state (only U.S. law)? California

I have recently listed my home with an Agent who I beleive is in Breach of our contract. I received an offer on my home, which was countered because my Agent suggested to use another Escrow Company. I have been in contact with the potential buyer and was told there is a disagreement between my Agent and his about the Escrow company. The Buyer told me that my Agent has stated any counter offer received will be rejected, if the Escrow Company is not agreed upon.

My issue is I have not been told any of this, and I fear the Agent is rejecting an offer without consulting with me first, therefore, I want to know if he has breached our contract and what my options are if he in facts rejects the offer without my consent? I signed a 3 month leasing deal with him, but given the circumstances I would rather part ways with him. Am I able to do so? If yes, would I then be allowed to accept the offer the Buyer is presenting on my own?

Any assistance would be greatly appreciated.

Thank you, Christine

[TIMMAAYY]

It'd be nice to see an actual copy of your listing contract, but any agent who purposely ignores plausible offers because he wants to deal with his own escrow company is not doing their job. Knowing an agent has done this and proving it are often two different things.

I would fire him and deal with the potential buyer and their agent yourself, but that's where it gets sticky, because of the fact that the buyer came to be familiar with your house due to your current agent listing it, and that in itself can sometimes be construed as "procuring cause" or what they refer to in real estate as the action(s) that started the ball rolling with regard to the sale of your property.

I'd start here, and maybe file a complaint if your agent will not let you out of the contract because of their inability to perform with your best interest in mind.

[url=http://www.dre.ca.gov/cons_DandR.html#licensing]Desist and Refrain Orders[/url]

Good luck.

[HomeGuru]

Originally Posted by colson915

What is the name of your state (only U.S. law)? California

I have recently listed my home with an Agent who I beleive is in Breach of our contract. I received an offer on my home, which was countered because my Agent suggested to use another Escrow Company. I have been in contact with the potential buyer and was told there is a disagreement between my Agent and his about the Escrow company. The Buyer told me that my Agent has stated any counter offer received will be rejected, if the Escrow Company is not agreed upon.

My issue is I have not been told any of this, and I fear the Agent is rejecting an offer without consulting with me first, therefore, I want to know if he has breached our contract and what my options are if he in facts rejects the offer without my consent? I signed a 3 month leasing deal with him, but given the circumstances I would rather part ways with him. Am I able to do so? If yes, would I then be allowed to accept the offer the Buyer is presenting on my own?

Any assistance would be greatly appreciated.

Thank you, Christine

**A: you and the Buyer choose the escrow company, not your agent. Why is your agent not wanting to use that certain escrow co?

[TIMMAAYY]

I imagine the agent has a relationship with the particular escrow company. Whether or not he is receiving any kind of kickback or additional compensation remains to be seen, but I know it happens, although it's not supposed to.

Also, it's not up to the agent to DENY or ACCEPT offers, that's between the buyer and seller. The agent's job is to present them and advise them, that's it. Sounds like this particular agent is working for himself, not the principal.

[HomeGuru]

Originally Posted by TIMMAAYY

I imagine the agent has a relationship with the particular escrow company. Whether or not he is receiving any kind of kickback or additional compensation remains to be seen, but I know it happens, although it's not supposed to.

Also, it's not up to the agent to DENY or ACCEPT offers, that's between the buyer and seller. The agent's job is to present them and advise them, that's it. Sounds like this particular agent is working for himself, not the principal.

**A: yes, so make a call to your principal broker ( your agent's boss) asap.

[TIMMAAYY]

If it turns out this particular agent is a broker who works for himself ( a possibility ), go to the home address of the link I provided and submit a complaint. The link gives you all the forms you need. I think you can even submit them online. If not, print them out, fill them out and send them to the DOI for California.

But before you do anything, confront your agent an hold your ground. Tell them you are very upset with the way he has conducted himself, specifically him telling the other agent that offers will be rejected due to the disagreement of the escrow company, and that violates his agent/principal relationship.

Like I said, it can get sticky because of procuring cause, but if you have a legitimate reason and proof that he is not working in your best interest, there shouldn't be too much difficulty in getting rid of them to work with someone you can trust.