illegal to go over broker directly to seller? - Posted by jim

import · January 28, 2002, 8:27pm

Posted by Brent_IL on January 29, 2002 at 09:57:06:

nt

import · January 28, 2002, 8:27pm

Posted by jim on January 28, 2002 at 21:27:13:

is it illegal to ignore the listing broker and go directly to a homeowner with your offer?, ie, a realtor’s sign is on the lawn and you ring the doorbell with an offer without the broker’s knowledge.

import · January 29, 2002, 6:16am

Re: illegal to go over broker directly to seller? - Posted by JoeS

Posted by JoeS on January 29, 2002 at 07:16:16:

Usually the seller signs the listing contract with the clause that if the seller sells the home without the help of the agent, the agent still gets a commission. So, are you doing anything illegal? Probably not, and the seller will decide if they want to proceed on their own or refer you to the listing agent.

import · January 29, 2002, 2:03am

Re: illegal to go over broker directly to seller? - Posted by Brent_IL

Posted by Brent_IL on January 29, 2002 at 03:03:42:

Once upon a time, I responded to a seller?s newspaper ad. At my offer presentation the sellers told me that the property was on a six-month listing, but that there had been no activity for five months. They had panicked and run their own advertisement.

I signed up the deal and carefully included the agency commission in the purchase agreement. I thought the agent wouldn’t care because he would still get his money.

I was wrong.

He took it as an insult to his ability as a broker, and a challenge to his manhood. By the time he got through re-explaining all the pro-buyer stuff in the agreement the sellers were absolutely certain that I was the anti-Christ. They were afraid to talk to me.

At the closing the wife started sobbing openly, fully convinced that they were making a terrible mistake. My contracts include a seller’s option to cancel the agreement by paying me money. For the first time, and the only time since then, I tore up the contract, settled with the mortgage broker, and let them walk away without paying.

Since that day I will not make a serious offer on a listed property without the listing agent being present. The potential for damage is too great.

import · January 29, 2002, 12:56am

Re: illegal to go over broker directly to seller? - Posted by Blaine

Posted by Blaine on January 29, 2002 at 01:56:05:

As far as I understand… No. You can make an offer to the seller and if they want the agent to be involved then they will tell you to call the agent.

Blaine - Las Vegas, NV

import · January 28, 2002, 8:35pm

Re: illegal to go over broker directly to seller? - Posted by Ed D

Posted by Ed D on January 28, 2002 at 21:35:26:

I stopped at a house that had a sign a week before. I asked if he was still selling. He was but my real estate friend tipped me off that the original listing agent still has a clause built in. It doesn’t go against the buyer. The seller would be liable for a commission for 6 months after the original date. I was told if I got another agent involved that the original agent gets bumped out. I got a buyers agent (for a discounted commission) and did the deal.

import · January 29, 2002, 12:28pm

Re: illegal to go over broker directly to seller? - Posted by David Krulac

Posted by David Krulac on January 29, 2002 at 13:28:06:

most times it would not be illegal, but the seller would still be bound by contract to pay his agent/agency.

It could be illegal if:

you are an agent
you have an exclusive buyer’s agency agreement with some agent.

import · January 29, 2002, 8:47am

Re: illegal to go over broker directly to seller? - Posted by Blaine

Posted by Blaine on January 29, 2002 at 09:47:47:

Hi, I’m curious… what is the amount of the fee you charge the seller if they want to walk?

By the way I REALLY like that idea.

Blaine - Las Vegas, NV