Agents who trade in the OLD CAR

By
Real Estate Agent with Fillmore Real Estate

One of the first things we learned when we attended Real Estate School were the Laws of Agency in that unforgettable acronym O-L-D C-A-R. As all agents know (or should know) this refers to the fiduciary relationship agents have to their principal clients. As agents, we must demonstrate the following responsibilities: Obedience, Loyalty, Full Disclosure, Confidentiality, Accountability and a Reasonable level of care. Sometimes, we’ve dealt with agents who have decided to trade in the OLD CAR for a new one – one that works in their own best interests.

Nobody is perfect and sometimes errors and miscommunications will occur. What we’ve found, however, is that in a number of transactions with outside agents, we may have a highly-qualified and very interested buyer for their listing and we were not allowed to present the offer. In one instance, our buyer had an adequate down payment (20 to 25%) and a stable employment history with good income. The listing agent in this particular case told us that the property (his listing) is already under contract with his own buyer, but the contract was not yet signed. In our view, what this means is that the offer was not accepted and a meeting of the minds had not yet occurred.

Our buyers had already seen the property and loved it, and wanted to present an offer. The listing agent told us because he had a contract (still unsigned by his buyer after two weeks) and could not present the offer from our buyers. He was holding us off, seemingly because he wanted to make a double commission for the listing and sale. In the end, the agent’s buyer never signed the contract and we found out the listing recently expired. We are going to do the right thing and contact the seller to see if the home is still on the market.

The agent was definitely not working in the best interests of his client. Unfortunately, this was not a singular event; we’ve had other offers that we could not present because the listing agent was either holding out for his own buyer, or had a contract that in the end did not result in a sale.

Is this a violation of the “D” in OLD CAR? Isn’t an agent supposed to work in the best interests of and give full disclosure to his client by presenting all offers? That’s what we always do for our sellers, regardless of who has the buyer. We present all offers and we would hope everyone else would too. It is possible the listing agent told his clients about our offer, but we always thought it had to be presented in writing. If we’re wrong, please correct us!

Fortunately the majority of agents we’ve worked with have been honest and forthcoming, and the bad apples are few and far between. Nevertheless, we’d like some feedback from more seasoned agents about what actions should be taken if a listing agent does not comply when you have offers to present.

Thanks for the feedback fellow Rainmakers, and hope you’ve all had a happy Fourth of July!

 

Bonnie & David

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Topic:
Real Estate Sales and Marketing
Tags:
real estate listings
real estate selling tactics
agent responsibility to clent
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Rainmaker
530,978
Maria Morton
BHG Real Estate - Kansas City Homes - Kansas City, MO
Kansas City Real Estate 816-560-3758

The interests of the client come first. We all know that, or should know that. And it's not just the newer agents that like to try that trick. As you say, most are honest and ethical.

Jul 06, 2009 01:25 AM #1
Rainmaker
2,017,346
Roy Kelley
Realty Group Referrals - Gaithersburg, MD
Roy and Dolores Kelley Photographs

It happens all of the time. Some of those agents should be considering alternative career paths.

Jul 06, 2009 04:52 AM #2
Rainmaker
589,575
Jim Hale
ACTIONAGENTS.NET - Eugene, OR
On the Move for You! - Eugene - Springfield Oregon Real Estate

An agent who does not present an offer promptly should be in serious trouble.

An agent who does not present a competing offer because he has one pending has just committed a cardinal sin.  In Oregon, that would cost him his license if a complaint was filed.

We must present all offers.  There is no wiggle room on this.

I would not hesitate to document, document, document ...and then report this conduct.

Jul 06, 2009 05:09 AM #3
Ambassador
1,650,702
Fernando Herboso - Broker for Maxus Realty Group
Maxus Realty Group - Broker 301-246-0001 - Gaithersburg, MD
301-246-0001 Serving Maryland, DC and Northern VA

It is ironic that some of the most successful Realtors I know of. . .the acronym of old car is out the door and they all drive new cars

Jul 06, 2009 05:14 AM #4
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Rainer
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David Rogoff and Bonnie Chernin

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