Is this Realtor unethical?

[Thomas Tarry]

I'm an Associate Broker in Syracuse, NY and this happened to me last week: I submitted and offer for a condominium on behalf of an LLC. The agent called me back and countered. My buyers accepted and we signed the deal. He asked me for the LLC paperwork listing the LLC members. I sent it to him and he sent me the signed contract. Two days later I get an e-mail from the sellers attorney disapproving of the deal (the seller and attorney are related). I call the agent for an explanation and get no response. Neither did my clients attorney when he called the sellers attorney. The natural thought here is they got a higher offer. Problem is the unit is still active. I write up a new, all cash offer and submit it. I get no response from the agent. After 24 hours I call him. He doesn't answer but texts me he's on a listing appointment, couldn't take my call and informs me the attorney was supposed to send everyone a letter. Ten minutes later I get an email from the sellers attorney stating he disapproves the cash offer. My client informs me he had an unpleasant interaction with this agent recently (my client owns a local fence company). I believe this agent violated the code of ethics when he didn't present my offer "objectively" as required in the Realtor code of ethics. This home is still active on the MLS. Should I file a grievance against this agent with my local board?

[Jonathan R McLaughlin]

@Thomas Tarry likeliest explanation given what you describe is the seller didn't want to be a party to a passive investor trying to expand their interest in, and therefore their control of,the condo development. Probably has friends there, entirely possible that too many units owned by any one investor would make subsequent sales unfinanceable and damage those sellers. For that matter, the seller may own more than one unit and not want to drive those numbers down. Don't see any upside to you for dwelling on this.

[Veronica Joyner]

@Thomas Tarry More than likely, the contract was rejected under the Attorney Review provision. As a licensed attorney in IL, I have rejected several contracts for various reasons. Double check to make sure the contract allows for this review period and secondly, if the review period expired.

Hope this helps.

[David M.]

@Alexandre Marques dos Santos

Actually, AR in NJ works slightly differently...  You need to read the whole clause in the standard NJ contract.  Either party has 72 hours to obtain legal counsel and submit an attorney review letter.  I believe if nobody sends anything it becomes a binding contract.  However, if one counsel sends a letter, then the AR period continues until both sides finally agrees or one side kills the deals (back out for no reason or any reason).  Especially with distressed properties, AR can last a month or more...

[David M.]

oh, and don't forget that NY and NJ work their deals differently, as I understand. In NJ, the agents are allowed/do put the contract together FIRST for residential deals. Offer with PoF has to be in writing. Both parties sign which engages AR period. As I understand for NY (which I am licensed nor done deals there), you do a verbal offer (similar to a scaled down LOI) which is then taken to the attornies who draft a contract. So, in NJ the buyers and sellers sign first, but in NY they sign last... I have to contend with this often when I get NY clients.

[Brian Pulaski]

Is Your area of NY like down here? We send an offer on a form. The seller signs the offer (once priced agreed) and send it back. The seller is then the one to create contract and sends it to the buyer. The buyer then signs and sends to the seller for their signature. Did your deal make it to the actual contract or was it the offer stage that was signed?

I also don’t know that the agent caused this deal to fall apart. If my agent brought me an acceptable cash offer but didn’t like the guy... too bad. I’m in business to buy and sell not lose out on a deal because my realtor doesn’t like someone.

[Alexandre Marques dos Santos]

@David M.

You were precise. I only wanted to highlight the fact in 72 hrs, it can be refused with no explanation, even after having signed the contract. I never experienced a situation that takes much longer than 72 hrs.

[David M.]

@Alexandre Marques dos Santos

okay, great!

[Jeremy Kershbaumer]

Request a copy of the listing agreement.  If you meet all of the requirements listed on the listing agreement.  Price, time to settle, etc.  You are entitled to commission.  Maybe that will convince them to go forward with the transaction.

[John Clark]

"Two days later I get an e-mail from the sellers attorney disapproving of the deal."

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I have not read the remaining posts, so this may be duplicative: What was the basis for the attorney disapproval of the sale? The attorney can only disapprove for certain reasons. You then swept away any objection to the attorney disapproval by submitting a new offer.

[Thomas Tarry]

In NY they do not need to give a reason......and he didn't.  I was never given a reason that the contract was not approved.  I submitted a new offer knowing legally he had to present it.  The final offer was for all cash.  And the cash price was the counter-offer they made to us.  I'm lucky, I have a lot of business.  I had just never run into this situation before.  The overall opinion of this group is he did not commit an Ethics violation.   

[Aline Sevigny]

@Thomas Tarry. Is this agent his own Principal Broker (I hope he is not)? The listing does not belong to him but to the Principal Broker- either you or your attorney should give him a call!

[Thomas Tarry]

@Aline Sevigny He is not the principal broker. I know his boss very well. She won’t like how this went down.

[Tony Gunter]

@Thomas Tarry

Shady, very shady.

Very, very tempting to cause a stir, but ultimately it’s up to you to decide if your seeking justice or pooping in your own sandbox. Sorry no great words of wisdom beyond that.