Realtor change for new construction (clause, agent, sales, agreement)
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I have a buyer's rep with a client (DFW area). Without realizing this, my client's husband signed an initial contract (offer) with a builder putting down another realtor's name. He does not have a buyer's rep with this realtor. Both husband and wife want to use me as I am helping them with a number of issues related to the home buying process. The builder is pushing back saying that they cannot entertain a change now as the other realtor might sue them.
There is no legal ground for the other realtor to sue the builder as I have a valid buyer's rep with my client. I am meeting the builder today and looking for advice.
So, on the one hand, the builder's agreement with their realtor is...well...the builder's agreement with their realtor. And if the builder were truly concerned about the restirctions they should have cleared this when the husband signed.
On the other hand...there's that word CONTRACT. You say the husband signed a CONTRACT. That's where it gets tricky. Because the Buyer Realtor Rep agreement is actually a contract too.
Buyer's reps mean nothing with a builder. The buyers put down the other agent's name, period the end. They cannot remove an agent from a contract once he's put there.
I work with a large east coast builder. Once a name is in the contract, I have never seen it amended. The only way out of this would be the named agent volunteering to be removed.
The thing everyone is thinking is why did the husband chose a different Realtor other than you? And when did he decide he wanted to use to use you? Obviously, after the fact and that is a problem.
Places that I am familiar with a buyer agency agrement is very much a contract. There are names and what the purpose is, what the compensation is and how it will be paid, what territory is covered, a start date and an end date whether it's an hour out, two days out, a month out, etc.
Thing is, on this topic you really need two signatures.
Also, builders are usually happy to make the sale happen. Apparently not this time.
Also, BIG ALSO, a buyer needs his/her OWN buyer's agent. Why in the world use someone else's representative?
The builder seems like he's tricking potential buyers. One signature?
I would get shed of these people. They are playing games.
That is the other side of the Escape clause in any good buyers' agency agreement.
"EITHER party may terminate this agreement at any time prior to location of a suitable property."
It appears that your client has not located suitable property yet. The person who might have is not your client.
Press ahead, and there will be more drama and intrigue to report, I am sure.
Last edited by MikeJaquish; 02-27-2015 at 07:50 AM..
I have a friend in another state who now has a similar situation going on.
The friend is a realtor who got the buyer to sign the buyer agreement after a discussion that included that the buyer did not want to use a realtor who had shown him a couple of house over a year ago and said he'd keep looking but didn't call back. Bases covered. Showed the house. Buyer liked it. No sales contract yet.
So the buyer decided to call the builder himself for the floorplan instead of asking his buyer agent to do this.
So the builder's agent calls the buyer back and now that agent and the buyer say they are old friends, kids play together and all in same activities, etc. He wants to take over entirely. The buyer believes he'll save a lot by going with the builder's agent. Now he is lying about what he told the agent he has the buyer broker agreement with.
Where was this old friend when the buyer was looking for a couple of years with another agent?
So the buyer doesn't think anyone looking out for his side is siginificant. Surely the agent hired by the builder will look out for this buyer, right....yeah, right.
BTW, the old friend agent is closely related to the builder.
And now my friend, the agent with the buyer broker agreement, wants to go work at the icee kiosk at the beach since this is not at all what he expected going into this business. People like the icee kiosk guy.
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