Realtors Fee's

[indian spirit]

What is the name of your state? LA

I was posting under mortgages,but think thi particular question will get a better answer here.

We were recommended a RE Agent by the broker, I asked for recommendations she gave me 4 and i picked one.

We started looking at the 1st of July. We told the RE agent wha we were looking for and how much we wanted to pay. In the 3 weeks, he showed us 7 houses, sent about 15 listings that were CLOSE to what we wanted about 30 that were no where NEAR it.

We never signed anything with the RE agent regarding using only him to search for a house.

We also looked at FSBO homes. And we found one that we liked. Me being the kind hearted person I am, Wanted the RE agent to make SOMETHING for the time he had spent on helping us, Now that is biting me in the Arse.

we all discussedthat the seller was going to "give" us 6k to go towards closing. And at 6% the amount that lenders allow for closing costs that was 4800, and that left 1200 which is 1.5% which would have been for the RE agent.

We signed a Purchase agreement on Sat 7-22, and on Monday 7-24 he went to the seller and had her sign a something about an right to exclusive listing or something for 2400.
That was to come off the TOP of the 6k they were "giving" us for closings.

The Purchase Agreement stats this:
Propery is being sold as-is
Seller agrees to extend to buyer 6k from proceeds at closing, for allowance for closing, fees, improvements and any other need as the buyer sees fit, including pre-paid items, and owners title insurance.

I have put a halt on the Appraisal which was set for tomorrow, and closing on the 7th.
because with the repairs that need to be made to make the house move in ready, we would not have the funds for that as well as the additional 1200 that the RE is wanting at closing. And this is not what was agreed upon.

I have called the Atty, that is handling the paperwork, to find out if the RE agent can do this.

Since we DID NOT sign anything with the RE Agent and the house was orginally a FSBO, can we back out of the agreement that has the RE agent in it, and resign a new purchase agreement with the FSBO, one that they have?

 

[PghREA]

Sure you can. However, the agent will probably sue you for the commission.

 

[Red_Lizzard]

What is the name of your state? LA

I was posting under mortgages,but think thi particular question will get a better answer here.

We were recommended a RE Agent by the broker, I asked for recommendations she gave me 4 and i picked one.

We started looking at the 1st of July. We told the RE agent wha we were looking for and how much we wanted to pay. In the 3 weeks, he showed us 7 houses, sent about 15 listings that were CLOSE to what we wanted about 30 that were no where NEAR it.

We never signed anything with the RE agent regarding using only him to search for a house.

We also looked at FSBO homes. And we found one that we liked. Me being the kind hearted person I am, Wanted the RE agent to make SOMETHING for the time he had spent on helping us, Now that is biting me in the Arse.

we all discussedthat the seller was going to "give" us 6k to go towards closing. And at 6% the amount that lenders allow for closing costs that was 4800, and that left 1200 which is 1.5% which would have been for the RE agent.

We signed a Purchase agreement on Sat 7-22, and on Monday 7-24 he went to the seller and had her sign a something about an right to exclusive listing or something for 2400.
That was to come off the TOP of the 6k they were "giving" us for closings.

The Purchase Agreement stats this:
Propery is being sold as-is
Seller agrees to extend to buyer 6k from proceeds at closing, for allowance for closing, fees, improvements and any other need as the buyer sees fit, including pre-paid items, and owners title insurance.

I have put a halt on the Appraisal which was set for tomorrow, and closing on the 7th.
because with the repairs that need to be made to make the house move in ready, we would not have the funds for that as well as the additional 1200 that the RE is wanting at closing. And this is not what was agreed upon.

I have called the Atty, that is handling the paperwork, to find out if the RE agent can do this.

Since we DID NOT sign anything with the RE Agent and the house was orginally a FSBO, can we back out of the agreement that has the RE agent in it, and resign a new purchase agreement with the FSBO, one that they have?

Since when do any buyers pay R.E. commission unless agreed to up front? If you didn't sign an agreement to pay commission let the lawyer close the property and save everyone a tub of money.

 

[PghREA]

Since when do any buyers pay R.E. commission unless agreed to up front? If you didn't sign an agreement to pay commission let the lawyer close the property and save everyone a tub of money.


Red Lizard, the agent wrote up a sales agreement on the FSBO property for the OP -
Now do you think she did it out of the goodness of her heart?


we all discussedthat the seller was going to "give" us 6k to go towards closing. And at 6% the amount that lenders allow for closing costs that was 4800, and that left 1200 which is 1.5% which would have been for the RE agent.

Now the OP wants to cancel this deal and write her own, cutting out the agent to save $1,200.

I agree, let the attorneys handle it. - See what happens to the $1,200 plus a whole lot more!

 

[indian spirit]

I feel I need to defend myself here to a degree. The FSBO, had a Purchase agreement that we could have signed with out our RE agent. I was being nice in asking our RE if he wanted in on it so that he could get some kind of compensatation.

AFTER the RE agent agreed to accepting the 1200. He went to the seller 2 days later and had them sign a paper of exclusive listing, and his fee of 2400. Had them date it on the 22nd instead of the 24th.

Then wrote another addendeum, that his 2400 was to come off the TOP of the 6K they were allowing for us to use for closing.

That is why I am upset, I feel like he tried to screw us. I wanted him to make some money, but dont feel like he did 2400 worth of work. In fact I dont feel like he did 1200 worth of work. But that is what was agreed to.


And as far as letting the Atty handle it. He said that the 6k would stand as it was wrote that the 6K was for us to use how we wanted to.

But that the 2400 was his fee, and he was renigging on the verbal agreement of 1200. And that we needed to take that up with him.

And that we COULD if we wanted to start the whole process over but he to said that we could be sued by the RE agent.

I have talked with the owners and made them aware of what is going on and let them know we are still very much interested in the house and that we have the loan for it. We are just having to deal with the RE Agent.

Luckily, the owners OWN the house, so there is no mortgage payment they have to make, and it was rental property. They are being very understanding about this.

The RE atty has set up a mediation, for tomorrow. We will see what happens.

 

[acmb05]

Since when do any buyers pay R.E. commission unless agreed to up front? If you didn't sign an agreement to pay commission let the lawyer close the property and save everyone a tub of money.


Red Lizard, the agent wrote up a sales agreement on the FSBO property for the OP -
Now do you think she did it out of the goodness of her heart?


we all discussedthat the seller was going to "give" us 6k to go towards closing. And at 6% the amount that lenders allow for closing costs that was 4800, and that left 1200 which is 1.5% which would have been for the RE agent.

Now the OP wants to cancel this deal and write her own, cutting out the agent to save $1,200.

I agree, let the attorneys handle it. - See what happens to the $1,200 plus a whole lot more!

I did not read it that way at all. The way I read it the RE agent went behind the OP's back and is screwing them for an extra 1200.00 on top of the 1200.00 they agreed to. Add that to the fact that he did this two days AFTER the purchase agreement was signed and back dated it to make it seem as though it was done BEFORE the purchse agreement was signed.

I beleive the RE agent acted in bad faith and should not be entitled to $2400.00 at all. He also wrote up an addendum to be paid out of the 6k and back dated that.
See if the sellers will go to the mediation with you and tell the mediator when they signed the papers.

 

[indian spirit]

Thank you ACMB that is exactlly what the RE agent did.

Yes the sellers would be willing to go to mediation if that is allowed. They thought we were aware of this. Which is why she said, she does not use agents at all.
Her and her husband have been buying and selling house for 15 years. And this one was the last of the houses that were on their "to far to travel" houses. As well as it is in need of major updating, but only a few Needed repairs to make it livable. But was too much work for them to do for a rental property. So they are letting it got for a steal.

 

[acmb05]

Thank you ACMB that is exactlly what the RE agent did.

Yes the sellers would be willing to go to mediation if that is allowed. They thought we were aware of this. Which is why she said, she does not use agents at all.
Her and her husband have been buying and selling house for 15 years. And this one was the last of the houses that were on their "to far to travel" houses. As well as it is in need of major updating, but only a few Needed repairs to make it livable. But was too much work for them to do for a rental property. So they are letting it got for a steal.

I would file a complaint with the real estate company he works for and also with the real estate association in your state. I would also call the mediator and see if you can bring the sellers with you, or at the very least a notorized letter from them stating when they signed the papers.

 

[acmb05]

Since when do any buyers pay R.E. commission unless agreed to up front? If you didn't sign an agreement to pay commission let the lawyer close the property and save everyone a tub of money.


Red Lizard, the agent wrote up a sales agreement on the FSBO property for the OP -
Now do you think she did it out of the goodness of her heart?


we all discussedthat the seller was going to "give" us 6k to go towards closing. And at 6% the amount that lenders allow for closing costs that was 4800, and that left 1200 which is 1.5% which would have been for the RE agent.

Now the OP wants to cancel this deal and write her own, cutting out the agent to save $1,200.

I agree, let the attorneys handle it. - See what happens to the $1,200 plus a whole lot more![/QUOTE]

Yea lets see what happens to it. I bet the agent loses all rights to any of the money if he pushes it. He backdated paperwork and flat out deceived the sellers by having them sign a sellers contract after the deal was made and contracts signed. The agent screwed up big time.

 

[indian spirit]

Just returned from mediation.

The RE agent will get only the $1200.00 that was verbally agreed upon. It was 2 to 1 (actually 4 to 1, but they counted the couple as 1)

The agent stated that the atty in his office are the ones that required the letter of exclusive listing, and that the CO. his works for wanted the full 3% commission.

But it was worked out. And closing still looks good for the 7th, as long as there are no complications with the title work.

Oh and the sellers were allowed to be present.

Wanted to add that the mediation was free of charge, as it was being done by the atty who is doing the title work. Not sure if that really matters.

 

[acmb05]

Just returned from mediation.

The RE agent will get only the $1200.00 that was verbally agreed upon. It was 2 to 1 (actually 4 to 1, but they counted the couple as 1)

The agent stated that the atty in his office are the ones that required the letter of exclusive listing, and that the CO. his works for wanted the full 3% commission.

But it was worked out. And closing still looks good for the 7th, as long as there are no complications with the title work.

Oh and the sellers were allowed to be present.

Wanted to add that the mediation was free of charge, as it was being done by the atty who is doing the title work. Not sure if that really matters.

Well that is good news for you. Best wishes on your new home.