All Forum Posts by: Chris Dee

 Hey Christina, I'm an Agent here in Los Angeles

I know a TON of listing agents that refuse to work with buyers period. Which is fair because buyers oftentimes don't like to sign exclusive agreements so agents end up working for free when showing buyers homes etc. This agent is more than likely just making sure that they get paid if they do any work representing a buyer (in this case you). It may feel unfair, but they are well within their right to structure their business that way. 

Truth be told, a verbal offer holds no value. You can't open escrow on a verbal offer alone. And even though the Agent may be "required" to tell the seller about your offer, they are not "required" to represent you and assist you in preparing the required documentation. 

Reporting this to the MLS/Board will be a waste of time. My advice is to literally call any agent that is local to your area and tell them you would like to submit an offer on a property. I'm sure there will be a long line of agents willing to help you get this across the finish line.

If you were local to California, i'd type up your offer for you in seconds lol 

Best of luck! 

Sounds like they sent you a standard buyer's agency agreement, required for you to work with the buyer's agent who showed you the property and had their standard language in there. A lot of listing agents, if not most, don't want to work with unrepresented buyers or act as a dual agent which is actually illegal in some states, and high risk in terms of being sued in others (it's hard to avoid having a conflict of interest when already working with the seller). There's already a 3% buyer's agent fee baked into the listing, you can either have the agent who showed you the property represent you, which is probably what you should do at this point since they showed you the property and they could claim "procuring cause" (although they may not have actually established procuring cause technically, but that's a different topic, and they probably think they did). If you only want to work with them on this transaction, ask them to change the language in the BAA to reflect that. Or you can write the offer yourself and send it to the listing agent and ask to be unrepresented. This is how going direct to the listing agent can make things messy. Sometimes it works, other times not so much.   

@Chris Dee

So presuming your state works the way mine does, and I expect it would. I understand this element of agency law is pretty typical.

You can't force him to write an offer for you. He's not obligated. In fact, he *can't* submit an offer for you because you won't sign his agreement.

He showed you the house already. Agents *can* show houses without a signed agreement. But the reason they might not is that it gives them less protection in terms of being able to guarantee themselves any compensation for the work they're doing showing homes. But this agent did show you the home without a written agreement.

Unfortunately for you, an agreement beforehand would have done more to protect *you*. Because now the agent is your procuring cause in the purchase, should you go on to buy that particular house. They'd have a strong claim for compensation.

Something else you should consider here is that it's possible you read the contract incorrectly. Most contracts state something to the effe t of "compensation due to agent shall be_____________" and then they have filled in "3% of final sales price" or whatever their number is. And you read that part of the contract and think that it means you owe that money. If you read through the remainder of the compensation section, however,it says that the agent will first seek that amount from the listing agent or seller. In this case, a number like 3% is what the contract states, you *are* ultimately responsible for it, but won't have to worry about paying it so long as the listing offers a sufficient commission to cover it.

@Chris Dee, I think this is much ado about nothing tbh.

I suspect this is a misunderstanding. It sounds like you are ok if they represent you for this property but not on any future properties. MANY buyers agents are used to using an "Exclusive" Buyer Agency agreement that locks you in for a period of time to that agent. That may be all this agent is familiar with and could even be their office's default policy to use.

However, in my state, we have another contract available a "NON-Exclusive" Buyer Agency contract which basically says if I am the procuring cause of the sale for example I show you the house etc then you are obligated to work through me as your agent. The agent may just not be familiar with using this type of agreement, but this sounds like what you want.

So, speak to them and/or their broker or even the listing agent. I suspect this is just a lack of communication.

Also, ask about the 3%. I suspect that is covered by the seller's commission UNLESS the seller is offering less for example if the seller is only offering 2.5% to the buyer's agent then you would be obligated for the difference of 0.5%. I suspect that is what that's about. 

Talk to them and ask these sorts of questions and I hope it gets sorted out. 

If you're not a licensed agent--I get the sense you're not based on your questions--then you aren't bound by the same code of ethics which prohibit realtors from going around each other directly to the seller. By all means, if you don't want to be represented, then there's a form they can have you sign acknowledging as much. As for ethics, we don't know what the broker's listing agreement says about any requirements to present offers. Sometimes, they don't actually have to present them. In any event, the local MLS board (or whatever it's called in your jurisdiction) will definitely be able to apply appropriate pressure to act swiftly.
Make sure you request in writing the seller's acceptance or denial of said offer. Verbal isn't enough.

Have you checked that the 'broker' you were speaking with was the highest person up the chain? If it is a big brokerage they may have a manager (single office or team level), then general manager (franchise/regional/several office level), and a broker of record (person with the most responsibility). If it is a major brokerage, you can usually find a directory online of higher-ups to push the problem up to. If not, then yes, start reaching out to whoever runs their MLS. Also, like Russell said, you can hire your own buyer's agent. They may be able to get a quicker response from this seller's agent.

Best of luck with it!