Would you go after a client that breaches a buyer brokerage agreement?

Question

This question deals more with agency than investing but I figured there's enough agents on this site to get some good feedback.

Would you go after a client that breached a buyer brokerage agreement and bought with another Realtor? I had a lady I was working with that was looking to basically gut her retirement account to buy her son and pregnant daughter in law a house. Kids didn't have any money, credit, or stable employment so she was helping out. We signed a buyer-broker contract in Sept through the end of this year. For whatever they disappeared the first week of November after I had showed them a dozen or so houses . . wouldn't return phone calls or emails. To the best of my knowledge, I was kind, professional and responsive; I figured they just gave up their search. So I check tax records this morning and low and behold they closed on a house with another broker on 12/5.

First time this has happened to me. Given the knowledge I have of their situation and it being 6 days from Christmas, it's hard to want to enforce the contract. On the other hand, I'm not crazy about someone taking $3,000 out of my pocket. Spoke to my broker and he suggested I email her just to see how she responds. What would you do?

Dmitriy Fomichenko · Answer

Steve's advice above is right on the money! Don't create a headache for yourself by pursuing this, you might be able to get your $3,000 but your loss (wasted time, etc.) worth much more than that so it's not worth it.

Kindly contact her and ask for feedback. By being nice and professional in this way you may win her trust back and get a referral from her in the future, who knows...

Steve Osowicz · Answer

Hey @Chris Elliott that is a rough break, if it were me (and has been) I would let it go. It helps to have a short memory and thick skin in real estate sales. What is the upside, you would have to go through a lot of grief to get that money and the client would hate you, maybe enough to go after your reputation. If you do contact her, I would just ask her if you did anything wrong or why she used a different agent after you had been helping her. Sounds like she probably has her hands full with her family and maybe it is a blessing in disguise that you are out of the transaction.

Morry Eghbal · Answer

You can force a seller to sell but no a buyer to buy from you. Let is go. Put your time and effort on getting more clients and work on the positive side of life.

Account Closed · Answer

Was the other agent the listing agent? Or just the buyer's agent? If it was just another buyer's agent I'd probably let it go. It's possible that your buyers didn't understand they had signed a binding agreement with you.

But a listing agent getting both sides of the commission.......I'd ask them to play nice and share. :)

Bill Gulley · Answer

Didn't read replies, no offense, this is usually taken care of between brokers, show your agreement and it's usually a split between buyer's agents.

The thing about going after the public, who may just be unaware of obligations, is more to your reputation and the agency's, suing for commissions is not a good PR matter over a home sale, now, if the commission was commercial and 50K, that's different!

If you're in a BOR/Co-Brokerage agreement with the other broker (or even if you're not) these matters are usually settled between brokers. :)

James Wise · Answer

I'd let it go. I think it's bad for business to try and enforce it.

Sounds like for whatever reason you guys did not gel. I would just move on & work with those that want my services.

Would you go after a client that breaches a buyer brokerage agreement?

Would you go after a client that breaches a buyer brokerage agreement?

Most Popular Reply

6 Replies