Private sale referred to by agent!

[Jacque]

Interesting situation my friend finds herself in.
She is selling her house currently privately, and though has been inundated by agents wanting to list it, has decided to go on her own and is having good results so far.
Last open house, however, a couple walk in accompanied by a REA. He then proceeds to remind my friend that, because he introduced this couple (who may well end up buying the property) that he should be entitled to some commission! Isn't this totally unethical and illegal?
I mean I realise the couple wouldn't have seen the house if this agent hadn't pointed it out to them (then again they could have as it's on the net) but where does my friend stand?
I've advised her that she doesn't have any obligation at all to give this agent any money! Maybe a polite thanks for the referral and a bottle of wine? I'm surprised that a REA would even do this.
Thoughts?

 

[asy]

It's not illegal, if he's kind hearted enough to provide her with buyers, good on him.

She, however, owes him absolutely nothing. Not a grain of salt. And that's what she should pay him... NOTHING!

If she pays him, she's encouraging him to do this to other people. Who may not know the legislation, or who may not have the ability to say NO!

Agents like this make me cross... They give the rest of us a bad name...

Just out of curiosity, what variety of agency does he work for?

asy

 

[Rolf Latham]

Hi Jax

The comm he is entitled to is as much as his written agreement with you friend says, what ? theres no agreement ? Hmmm a nice bottle of wine is about where it would be I reckon

ta

rolf

 

[Jamie]

Last open house, however, a couple walk in accompanied by a REA. He then proceeds to remind my friend that, because he introduced this couple (who may well end up buying the property) that he should be entitled to some commission! Isn't this totally unethical and illegal?

Hi Jax,

I'd have your friend tell the agent that, as he was obviously acting in the capacity of a buyer's agent, he should speak to the purchasers about any fee he feels he is entitled to.

Jamie.

 

[mitch]

Gday Jacque,

perhaps your friends new found friend could collect a commission of 50% of the amount above the asking price on the property your friend has on it at the time of the introduction.

Like they want 500k

he sells it for 600k

50/50 split is a 50k commission , cant complain about that !

Regards Mitch

 

[DD1]

bloody cheek

Any agent that says anything like that to me would be manhandled from the premises after getting their card for complaining to the real estate institue in your state.

I would addthe boot if they complained at all at being removed. It is your house and your sale, stuff the blood hungry agent and make it clear that legal action will follow if they make a scene on exit of your property.

Makes me want to ring their necks for you. It is the act of a non professional and as such deserves your quick response as such.

Most of all if you are getting numbers to an open house and no ofers then next open house have a bbq for those that attend. The smell of sausages and onions on the barbie often make people feel at home, and thats the trick isnt it. $30.00 in food costs could get you a whole lot more.


Good luck and happy selling. Our house finally sold in Sydney for $70k less than we asked but it was 9 months to sell it too. We are glad to have moved on.

DD1

 

[jrc]

As your friend has no agreement in writing with the agent he is prohibited from claiming commission in nSW. Why not refer him to the Department of Fair Trading?

 

[michaelg]

Hi,

Just ask the agent very polietly under which law is she obligated to pay this comm under?

Regards
Michael

 

[likewow]

Like a lot of agents do - he is relying on your friends lack of knowledge of the RE industry and trying to bluff her. I had an agent once tell me i couldnt change a contract and when i asked why he said 'we wrote it and we want it to stay a standard contract'.......My reply was 'isnt the contract between myself and the vendor and has nothing to do with the agent, I will make alterations and if the vendor doesnt like my changes, well, they can either just not accept it or make further changes."

He later conceded that he was trying to bluff me and 90% of buyers accept what he said and didnt know you can alter a contract.

He justified this with he was working in the best interests of the vendor and therefore what he was doing was acceptable. Nice guy!!

Anyway, the bottom line is there is no agreement so your friend doesnt have to pay him a cent. Trying to do a deal with him (comm. for him over a certain price) just encourage his unethical behaviour so i wouldnt recommend that.

 

[Aceyducey]

Report him.

He's unethical & should be drummed out of the industry.

It's only by the actions of investors & people like your friend that we can get rid of these people from the real estate industry.

Cheers,

Aceyducey

 

[David E-Noosa]

Lots of excellent replies here, I would be tempted to laugh in the idiots face.

I really liked Jamies reply

I'd have your friend tell the agent that, as he was obviously acting in the capacity of a buyer's agent, he should speak to the purchasers about any fee he feels he is entitled to

 

[kissfan]

Also agree with Jamie. Tell the agent to p#@s off and chase any commission he feels he is entitled to from the purchasers ( if they buy it)

Regards
Marty

 

[Lily House]

Hi Jacque,

It would be interesting to know more about this agent and why he is showing this couple houses. Perhaps the couple are local and he is hoping for a listing on their house once they have bought another?

Lily

 

[NormH]

Interesting situation my friend finds herself in.
She is selling her house currently privately, and though has been inundated by agents wanting to list it, has decided to go on her own and is having good results so far.
Last open house, however, a couple walk in accompanied by a REA. He then proceeds to remind my friend that, because he introduced this couple (who may well end up buying the property) that he should be entitled to some commission! Isn't this totally unethical and illegal?
I mean I realise the couple wouldn't have seen the house if this agent hadn't pointed it out to them (then again they could have as it's on the net) but where does my friend stand?
I've advised her that she doesn't have any obligation at all to give this agent any money! Maybe a polite thanks for the referral and a bottle of wine? I'm surprised that a REA would even do this.
Thoughts?

Interesting story, notice he used the words "should be entitled to some commission" so that rules out going to the police for trying to obtain funds under false pretenses. As the agent has tried to scam/bluff some coin from your friend then I would be giving him nothing. ESPECIALLY as he is not your friends agent, has not legal obligation to "work for your friend [vendor]" and in fact it could be argued that he is working for the purchaser, thus trying to get the best for them and not your friend. It not unheard of that RE work for buyers but conflict of interest becomes a problem, thus was the birth of "buyers agent" to try and remove that stigma of "conflict of interest".

So nothing you can do apart from get all details and then go to the Real Estate Institute in your state but don't hold your breath, a bit like going to the HIA to complain about a builder yes I am very cautious about "industry bodies" doing self rule.

Norman

 

[Simon]

Hey I can't see the problem.

They got a chance with a serious buyer, the agent knows he has no rights.

He is asking anyway, certainly not pressing the issue.

Perhaps if his buyers put in a strong offer, in the absence of any other offers in a weak market maybe a vendor may feel well disposed to throw him some fee?

It is business and people should approach things in a business like manner.

In many other fields of business (inc mine) we expect or pay introducton fees for bringing two willing parties together.

I think his mistake was in bringing the buyer through..... I would have made the contact first and agreed on something up front if a possible sale eventuated.

I think we are all too ready to be critical of agents - I can't see that this guy has done anything wrong at all. If anything he has done the vendor a favour at this stage.

Cheers,

 

[TheBacon]

First - get an offer from the buyer, or talk to them personally and get things rolling.
Second - The agent is just background noise, to be ignored. Just make sure you dont unduly piss off the agent and thereby lose a potential buyer.
Third - After the sale, lodge a formal complaint with the agents boss and with any and all parties that can remind this agent of his legal and ethical responsibilities.

Good luck.

TheBacon

 

[Simon]

What law or ethic has this agent breached?

 

[liverpoolharryk]

As times get tougher for agents to make a sale, are they reverting to old tricks again? Jacque no way is your friend obligated to pay him anything, if he was an honest person he would have made contact with your friend. Then he could (If your friend was even willing) arrange a one off inspection for his purchasers and discuss a commission rate.

We (here in QLD) are not even allowed to take a purchaser on a property without an authourity sigend by the vendor. So I don't know where this guys gets off! And they wonder why we get such a bad name.

Cheers
Jarrod
Jarrod Lane Real Estate

 

[Simon]

First - get an offer from the buyer, or talk to them personally and get things rolling.
Second - The agent is just background noise, to be ignored. Just make sure you dont unduly piss off the agent and thereby lose a potential buyer.
Third - After the sale, lodge a formal complaint with the agents boss and with any and all parties that can remind this agent of his legal and ethical responsibilities.

Good luck.

TheBacon

The Bacon,

Are you suggesting you take this agents buyer then complain about him? What for? For introducing you a buyer?

How nasty is this! I would be grateful for the buyer (they don't grow on trees atm) prob wouldn't pay him but would certainly buy him a carton of beer or a few bottles of wine.

And we are sitting here saying how bad agents are?

What has he really done wrong? Can anyone spell it out? He has introduced a potential buyer? Asked for a fee (no harm in trying I say), we all agree that there is no obligation to pay it?

Has he breached a law?

The house was open for inspection to the public - are agents not allowed inside open houses?

Can someone please get off their moral high ground and explain the issue to me - I am not all that bright I think

Cheers folks,

 

[Jacque]

As times get tougher for agents to make a sale, are they reverting to old tricks again? Jacque no way is your friend obligated to pay him anything, if he was an honest person he would have made contact with your friend. Then he could (If your friend was even willing) arrange a one off inspection for his purchasers and discuss a commission rate.

We (here in QLD) are not even allowed to take a purchaser on a property without an authourity sigend by the vendor. So I don't know where this guys gets off! And they wonder why we get such a bad name.

Cheers
Jarrod
Jarrod Lane Real Estate

Jarrod makes a valid point here, in that the agent should have made contact prior to introducing the buyer as this could turn then out to be a win win situation. I'm all for making a deal, but I just feel this situation has been handled the wrong way.
Anyway, my friend isn't now too concerned and is now aware of the legality of all of this. Let's hope the outcome (and sale price) is a positive one
Thanks all for your opinions and knowledge