Realtor blackmail

By
Real Estate Agent with Florida State Realty Group, Inc BK3089599

I had 3 high end rental listings from 1 client. It has taken approximately 3 months to get 1 rented after 2 offers from 2 different tenants in a period of approximately 2 weeks (lots of 2s there). We have had 2 offers on the second and had to temporarily status the other (the client was refinancing it).

 

The first rental was listed at $5k per month (this was after we lowered it from his original asking of $6k per month). We brought a low ball offer to him of $4k per month but for 2 years. There was some back and forth countering and it stopped at $4.5k per month by the owner. We had both sides of this transaction – there was not any other Realtor involved. The owner asked for a “favor”. Would we take our commission for the 2 years half now and half next year on the anniversary date? I advised him that we would in this specific case because we had both sides of this transaction.

 

Move forward 2 weeks. The original tenant does not accept the final counter by the owner of $4.5k per month. We are presented with another offer from a Realtor for full price at $5k per month. Everything is great and all the contracts are signed. I sent the owner an email detailing everything including the fact that in this case we would not be able to break the commission in 2 payments whereas there is a cooperating Realtor in this transaction. I know he receives his email because he addressed other issues that were contained in the emails.

 

Move forward 2 more weeks. The client calls me and wants to make certain that we would only be collecting 1 year’s rent upfront and the remaining commission next year on the anniversary. I explained that I had emailed him on this topic 2 weeks ago but he now claims non-receipt. I explained why I could or would not be doing that in this specific case and why I had agreed to it in the original offer. He became very agitated and demanding that he is demanding that we do it this way. I carefully explained to him that the listing agreement calls for payment on the vale of the lease.  This was a 2 year lease and not a 1 year lease with a 1 year option. I advised him that I needed to pay the other Realtor based on that fact.  Should I have given in to his demands I would not make anything until next year – provided he even paid it.

 

I refused to honor his demand. He advised me that unless we would accept these terms that I was to cancel these other rental listings. He further suggested that if I could “prove” to him that there was another Realtor that he would agree to pay them their full commission and I would have to split my payments. What a nerve - not a chance this was going to happen. This client is very well healed and does not have any financial concerns.

 

I simply once again refused to accept these terms and agreed to cancel the listings via a conditional withdrawal at no charge.  Wait until he tries to relist J

 

What would any of you have done? I’m curious to learn how others would have handled such a one sided demand.

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Location:
Florida Broward County Fort Lauderdale
Tags:
realtor blackmail
clients demand

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Anonymous #1
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Anonymous

Once agreed to in the contract my fees are not negotiable unless it is to get a deal done.  For example, at an auction the seller will need xx to get the sale completed.  Maybe they have a mortgage or a legal restriction limiting the reserve.  If I need to give up $1000 +/- to keep the other $20k, I would probably do it.  It also depends on how reasonable the client is and if he is just trying to shake me down.

Don't pull up in a 100k car and gold Rolex and try to regegotiate fees.  It's no going to happen.

September 30, 2006 08:08 AM
Rainer
46,464
John Pruitt
HelpYouWell.com
Just as a side note, you can request receipts on important emails like this one.  It won't keep the clients from becoming selectively blind (or ignorant) of them, but it gives you more ammunition for your case.
September 30, 2006 12:29 PM
Anonymous #3
Anonymous
Kathy Hyatt
Wow, I have never had a client like that, but I must say I dont think I would have done anything differently, especially the conditional withdrawl part.
June 19, 2007 10:01 AM
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Rainer
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Stephen McWilliam

ABR, CRB, CRS, GRI
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