Greedy Real Estate Agent

Brian, it sounds like you're dealing with a real estate agent who doesn't play by a code of ethics. That's the major difference between a real estate agent and a Realtor.

As a Realtor, (which I am) we are bound by a Code of Ethics that doesn't allow us to "go around" a deal like you're describing. Also, as a Realtor, we are obligated to continuing education and must obtain a certain number of credits every two years.

Deal with a Realtor in every case that you can. That doesn't necessarily mean they are all above board and ethical, there's bad in every bunch. But on the whole you'll be better represented.

Joe

Brian. If you have not go to the Real Estate Investors club here the website wwww.reiclub.com where you live might not have one like my don't go to the next State that is close to you. Sarah

We have different RE brokers not only go around us on a deal, but even steal the deal for themselves.

If any professional in any aspect of a real estate transaction decides to take advantage of you or your contacts, cease doing business with that person. Real Estate and real estate tranactions are about (the)relationship and relationship selling not push selling or pull selling. In Maryland if you are convicted of acting in less than a professional or unethical way and it has happened repeatedly then you can lose your real estate license forever. Maryland sets the bar for of the more lax states. I would suggest keeping meticulus records of these people and then turning a copy of the records over to the appropriate authorities in you state. I am licensed real estate broker although inactive currently and I refuse to do anything for a ahort term gain that will hurt a relationship.

to report the agent immediately to their state association and your state Department of Real Estate. Don't think that calling them is a waste of time. I just recentely became licensed in California and I had no idea how serious my boards take complaints. They do not mess around. In fact, every month I get a list of agents and brokers who violated CA law, what happened to their license and what laws they broke. It is public information and I don't want to EVER find myself on this list.

Brian,
Joe's advice is great, work with established Realtors who are working with R.E. investors.

Regarding, buyers...I have my buyers sign a "Non-Circumvent" agreement.
Remember, this is business. Keep notes on all calls,etc. If they refuse to sign an agreement, that sends up a HUGE RED FLAG! Don't work with them, walk away, there are plenty other cash buyers who will work with you if you've got the right deal for them.

Good Luck!
SuzyB

Please advise as I am not familiar with the short sale process in Naples, Fl. True story: Prior to leaving Florida (I live in Canada), we saw a property that was going to be a short sale and I really liked it and wanted it for my personal use (winter home). I gave my agent a deposit cheque before I left with no date on it made out to the title company. I wanted to give a cheque for $5,000. she told me too much and $2,000. would do.

I advised my agent that she must sell the other 2 properties we had in order for us to be able to close this one. (Hoping it would motivate her).

Well the properties did not sell but we were talking to finance people(referral names from our agent) who thought we would be able to get the money but could not give the approval in writing at that time.

The owner accepted in June & the bank sent a letter to the owner saying it was accepted Aug. 06, yet we were notified Aug 20. The letter stated that we had to close on or before Sept17. Our agent must have told the other side that we did not have the cash because we lost the deal. The sellers wanted to bring up the closing 2 weeks and we could not get the financing in place in 2 days however we would have been able to close by the 15th. We got no written notice of the change or cancellation from the seller. Apparently the seller got nervous because they said we did not have a binding contract. Our deposit cheque went missing. We even offered to give them 50,000. cash deposit immediately to show our committment and the balance by the 15th. By this time they already had another offer and we were out? Can this be done? It feels like they were working on selling this home to someone else. The agency double ended the deal. Very unethical.

I was so upset and felt our agent betrayed us. In Canada when we write a cheque it must be submitted to the broker within 48 hours or there will be a fine & disciplinary action taken. Also in Canada everything is done in writing. This way unethical agents get found out, fined, reprimanded and sometimes lose their license. Questionable sellers and buyers cannot change their mind once the deal is final without ramifications. We have used this particular agent on several deals and now I feel she broke our trust and I can no longer tell her things in confidence. In Canada we have a buyer/agent contract where their loyalties are to us. We also have a dual agency where the same agent can work for both buyer and seller with approval & both knowing the agent is in the middle and that he/she will disclose all they know to the other party. The agent must be fair to both parties. We never agreed to this type of agency with our sales person.

She sent me a cancellation form to sign and I said we would take a chance & wait for approval because it looked good and if we couldn't get the money we would lose the $2000. deposit. She didn't remember me giving it to her & said I must have mailed it to the title company? I have duplicate cheques and have a copy of the one I wrote. Another cheque is written afterwards dated June 24. We specifically left the date off because we did not know when the offer would go through.

I feel both agents were unethical, if they saw a $2000. deposit on the offer why not question where it was if they did not have it way before the actual HUD day. The title company never called me with regards to any information just sent the HUD the day before the closing. Being in Canada we have to wire money and it takes time.

Do I have a right to call the board and complain or to sue? When I speak to Florida agents most of them do not have a clue what their job entails or how to fill out a listing. They do not return calls or know the codes of their own listings which you need to get into gated communities so other agents can show the properties. We have found lockboxes with no keys, broken keys, wrong codes, broken locks, open doors, lights left on. It's appalling and they would lose their license in Canada.

Please help me understand. I am really sad I lost this great deal. Being on the ground floor this unit was perfect for my mom (who's had a stroke a year ago.) Am I wrong to feel betrayed?

I need answers before I can let this go. Thank you.
S

Our 1st deal before moving to Fl. an agent couldn't find the house, we had to give him directions(being from NJ)... show the property, gave a $ 5K deposit check & left for home, 2 hrs later he called to say it wasn't available ... turned out his mother, the broker bought it.
After moving here & doing 30 plus deals, we've found most agents don't have a clue. 1st, on any foreclosure or short sale, NEVER give a deposit until the bank approves it. As for FL, if buying the check should be made out
directly to the title company ... the title co. can not return a check without both parties signing off.
Most title companies are OK from the legal aspect now, but you have to stay on top of them also. Keep close tabs on the charges on the HUD.
The Board of Realtors here is a total joke, I don't believe they even know what a fiduciary relationship is; let alone assisting you or reprimanding their agents. As for suing, forget it, most lawyers are even worse, it will cost you more than than your deposit.
On the up side, Fl. has some great deals, & you can close in 3 days with cash & a good title company.

there are some idiotic agents/realtors/brokers out there.

I'm sure during the 'boom era' they were living high on the hog but I truly wonder how some are doing now.Hope they have that 'Plan B' in place.

However, in regards to Brians issue, no agent has to stay with you; you're not married or connected at the hip. If they feel they can do the job on their own or don't want to share, then let them be and get your own dough.

The other issues about stealing deals or having family or biz associates take deals from under or make the buyer raise the price i've seen and been a victim of myself, but it happens. The best thing I can say is "NEXT!!!!!" Deals are a dime a dozen and there's always another to take its place.

Stay on top of all parties to the point where they will either not think about trying to get over or not want to deal with you anymore because they know they can't get over, or they'll continue to deal with you because they want to keep making money with you.

I have been cheated by a dirty RE Agent.

In my city i found a vacant house empty for
a looong time. The door was WIDE open so we
went in and looked aroung nice house needed TLC
but thats never a problem on a good deal.

As we were walking around the outside of the
house I saw a small letter one of the front windows
anyway it read that this house was basically
listed with a RE Agent with his contact info
I called him and the house was for sale it was
in foreclosure $50,000 cash! Before I called him
I looked online at the tax accessors site found
out it was tax assessed at a little over $147,000!

I do have to admit that I may have talked a little
to much about what I planned on doing with the house
and he went right around me and sold it to MY investor!

I would have had just under $100,000 in equity in that
1 house!

Be careful you guys about letting people (RE Agents) know
your intentions in the houses you plan to buy Before you
get it under contract.

Sorry So Long

I have been doing this RE thing for over 10 years. Many things happened. I have been cheated by RE agent, by buyer and by my own partner.

It all comes down to ethics and properly negotiated and executed contract. You can always have stipulation in the contract about WHAT IF and try to foresee all the scenarios. However, it is virtually impossible.

After all the crap that has happened, I still believe that there are honorable people out there like myself and I try to find people who have been in RE for some time. Those people seem to be more respectful, honorable and knowledgeble.

Yuri

I agree.

Cloud the title with a memorandum, so if anyone decides to go behind you and cut you out, they can't because they have to pay you first. Warn the realtor or anyone that you have it under contract, and if you hear of anyone going around you, that you will not do business with them and that you will file a complaint with the local Realtor board of directors, and /or the BBB, and they will be blacklisted. (Ok, that may be a little tmi to tell but, what else can you do other than walk away with no recourse?)