Can I sue my listing broker? Do I stand a chance?

Can I sue my listing broker? Do I stand a chance?

Investor · Westlake, OH · Member since 2015 · 20 posts · 3 votes

Hello BP,

I have a big problem with the listing broker on one of my properties in Las Vegas, NV. I normally list my flips with the same broker that got me the property... I am just realizing it might've been a big mistake, instead of using the ones I already now and work just fine.

So I've had a listing for almost two months now and the broker, who assigned a new agent,  not only has not produced anything, nothing at all, but haven't even showed the property. The only people the have taken are agents from their same brokerage. 

The weekend when the NFL regular season started, the agent called me to let me know they were canceling the open house we had scheduled even when I told him I had people going that day. 

Furthermore, the agent completely abandoned the listing when I refused to have weekly price cuts instead of a bigger price cut after the listing hit 60 DOM.

Now I've decided I'll do a cash out refinance and spoke to the broker, she told she would let the agent know and to contact him to get the parcial release. Its been 3 days and he keeps telling me he lost his ear, that he can't talk to me and that I have to talk to the broker, she's the boss. Obviously she is not picking the phone either. They don't seem to have any intention of releasing the property even when I agreed to a 20% referral for them.

So, I don't know what game they are playing, if they want to mess with me or tire me or what.

I signed an exclusive listing agreement until December but I don't want to wait that long to get people through the door and I really feel there has to be something I can do. I don't mind hiring an attorney and fighting for my listing, although it might do more harm than good at this point.. Any thoughts or advice?

Any good real estate lawyer around? 

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Investor · Panama City, FL · Member since 2015 · 378 posts · 183 votes
10y

if it were me, I would hand deliver a letter stating if they don't release the listing agreement you will file a formal complaint with the licensing board in your state for "abandonment of a client," is usually the magic phrase, and then follow through if they don't.  In the future always add an addendum to any listing agreement that you can cancel at anytime .  This is common for investor types, I've done this for 20 years and no broker has ever question,   I make it clear up front if they don't sell it in certain time frame I may rent it.  I also always use realtors who sell at least 20 or 30 properties a year and work with investors, and I make them commit to certain number of open houses, and advertising in advance. 

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  • Andrew SyriosPro Member
    Moderator
    Residential Real Estate Investor · Kansas City, MO · Member since 2014 · 10k+ posts · 5k+ votes
    11y

    I don't know for certain whether this is grounds for a suit, but it very well might be a breach of their listing agreement. I would get that out and look through it, maybe have an attorney look through it as well. And of course, you can threaten to talk to an attorney or perhaps sue if they don't release you from your contract. Of that's enough. I mean, if they're not going to put any effort into selling it, why would they want the listing in the first place?

  • Mindy JensenPro Member
    BiggerPockets Money Podcast Host · Longmont, CO · Member since 2014 · 7k+ posts · 10k+ votes
    11y

    You could also file a complaint with the state licensing board. I know my home state of Colorado's licensing board takes complaints VERY seriously. So do agents... 

    Good luck and keep us posted.

  • Real Estate Agent · Pompano Beach, FL · Member since 2015 · 249 posts · 73 votes
    11y

    honestly I would go into the office and sit down with them and have a chat. Get there attention that way. Explain what your concerns are and go from there. I don't even think you have grounds for a lawsuit.

  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    11y

    As is often the case on BP, I just feel like we are not getting the whole story.  It sounds like you have a particularly long exclusive listing contract with the broker.  The only time I do agreements that long is when the seller insists an absurdly high price for the property. @Patricio Tellez-Giron is the property priced at an unreasonable price? Also I can not imagine that in 60 days the property has not been shown to any prospective buyers. Even an absurdly priced property is going to have some sort of traffic.  Why would the broker not be allowing the property to be shown? Why would they not allow an open house? It just makes no sense. They only get paid when the property is sold. For these reasons I just feel it is unlikely we are getting the whole story.

  • Investor · Henderson, NV · Member since 2015 · 14 posts · 1 vote
    11y

    Complaint to the board. 

  • Investor · Westlake, OH · Member since 2015 · 20 posts · 3 votes
    11y
    • @Russell Brazil It is not that the broker is not allowing the property to be shown, it is that the agent does not have a clue on how to market the property, how to get feedback or follow up on the few people that have show interest. Two of the few that have gone with genuine interest, I got the leads myself.

    Also, it is not absurdly priced, I actually went with the agent's suggestion with is in fact, 20,000 over the comps. He wanted to price it high in order to have some negotiation room.

    I'm cutting the price to where I originally thought it would make sense but with my new broker.

    My issue with the broker is not that they are sabotaging the listing on purpose, my issue is that she is not doing her job monitoring her agents, looking after her listings and putting the work necessary to get the job done.

    She'll be getting a call from my attorney tomorrow and @Mindy Jensen that too is a great idea, she will hear from the board too.

    I am almost certain I can prove she didn't adhered to her fiduciary duties in our relationship.

  • Real Estate Agent · Henderson, NV · Member since 2011 · 1k+ posts · 550 votes
    11y

    @Patricio Tellez-Giron Sorry to hear you're having difficulties.  As a few others have mentioned, I think a sit-down face-to-face meeting with the broker will solve this issue.  Typically if a client is not happy with the situation, the broker isn't either.  

    Meanwhile, you brought up an interesting point in your original post.  Some agents are really good at helping find properties, but are not good listing agents.  The reverse is true as well.  Each side takes specific skill sets.  You may want to consider this when moving forward with your next deal.  

    Good luck!

  • Investor · Daphne, AL · Member since 2014 · 1k+ posts · 242 votes
    11y
    Lawsuits are the playground of the rich. If that's you, go for it. Good luck.
  • Investor · Panama City, FL · Member since 2015 · 378 posts · 183 votes
    10y

    if it were me, I would hand deliver a letter stating if they don't release the listing agreement you will file a formal complaint with the licensing board in your state for "abandonment of a client," is usually the magic phrase, and then follow through if they don't.  In the future always add an addendum to any listing agreement that you can cancel at anytime .  This is common for investor types, I've done this for 20 years and no broker has ever question,   I make it clear up front if they don't sell it in certain time frame I may rent it.  I also always use realtors who sell at least 20 or 30 properties a year and work with investors, and I make them commit to certain number of open houses, and advertising in advance. 

  • Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
    10y

    I too would go to their office, address my concerns, and ask them to terminate the listing. My office doesn't believe in holding properties hostage. If an agent isn't doing their job the client should have the right to fire them just as any consumer can choose to shop at Walmart or take their business elsewhere.

  • Financial Planner · Las Vegas, NV · Member since 2015 · 66 posts · 19 votes
    10y
    I know of a great agent and broker I use in vegas. Pm me if you are interested. Good luck!
  • Investor · Westlake, OH · Member since 2015 · 20 posts · 3 votes
    10y

    Thanks @Cameron Skinner @John Thedford @Ryan Inman  and @Phillip Dwyer

    Just an update and a thank you for giving advise on this subject.

    A day or two after I wrote this post, I gave another try calling the broker again. She had a better attitude but kept stalling until she received a call form my attorney and, literally, 30 minutes later I had the unconditional release on my inbox. I'm not sure what happened there but lesson learned. 

    We moved the listing with one most reputable teams in Vegas and put put it  in contract two days later. What a difference.

    Great week everyone!

  • Business Owner/Investor · Millersville, MD · Member since 2015 · 191 posts · 71 votes
    10y

    I hate to say it, but your agent is an idiot.

    You are in a buyers market, and LA had one of the countries worst losses in value during the crash, if Im not mistaken in the mid 50s percentile range.

    It turned LA into a disaster, a foreclosure super site, and a nightmare for banks.

    People will look at your property, at the comps, see that its listed too high, and see the 300 or so other properties in your area, immediately browse past your property, and toss yours into the "No" bucket. 

    In a sellers market, you mark up to who sold last, and at what. In a buyers market, you sell under your comps. Otherwise you arent a good deal, and noone will buy. 

  • La Porte, TX · Member since 2015 · 5 posts · 0 votes
    10y

    The best option is to sit down and resolve the issue. It will save lot of time, energy and money.

  • Real Estate Agent · Henderson, NV · Member since 2011 · 1k+ posts · 550 votes
    10y

    Glad to hear it worked out in the end. 

  • Robert AdamsBusiness Member
    Real Estate Broker · Henderson, NV · Member since 2009 · 1k+ posts · 373 votes
    10y

    Sorry to hear the original broker and agent gave you such poor representation.

    Glad to hear it all worked out in the end.

    I am back from my trip so if I can be of any assistance please don't hesitate to reach out.

    Best of luck closing your deal!

    The Adams Team at Rothwell Gornt Companies4.970 Reviews
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