unionmom said:
You're writing in a guaranteed fee for the agent if the buyer/seller defaults on the contract but where is the guarantee for the buyer/seller if the agent defaults? The agent in your scenario is wanting money back for wasted time/money ... why should the agent get that and the buyer/seller get nothing if the agent did not do their job? If a buyer signs a contract and then their agent does not work to find them a home, why should that agent get any part of the commission on a home that the buyer finds on their own and why should that agent get a fee if the buyer cuts them out? If a buyer signs a contract with an agent yet an agent repeatedly misses appointments so the buyer moves on without them, why should that agent get the commission and/or the fee. And why should the agent get the double protection of the contract and the retainer fee and the buyer be basically out there with nothing? Look at all that you said they would have to go through if they wanted to try to get sanctions of some sort against the agent, assuming the agent is registered. And that still does nothing for the buyer.
And in the seller scenario ... the contract is enough protection for the agent. It is clearly spelled out (or should be) what the duration will be and what the commission will be. There is no need for a retainer in that scenario. That is locked in for the sale of the home and if the home does not sell the agent doesn't get paid. And if the agent is a slacker the seller has no recourse and they are damaged by their home being on the market for whatever period of time without selling. Where is their protection?
And on the other subject in the thread ... I do agree that in today's market (hell, in most markets) people are not realistic in the value/listing price of their home.
You are asking some good questions! And I have to be careful how I answer as you are asking legal questions that only an attorney can answer.
First off, you have the right to FIRE your agent any time if they are not performing according to the contract terms. There are specific ways to do so, but as with any other contract you sign, you must consult an attorney before doing so. But they usually want a retainer fee also. ;-)
You can also file a complaint with their broker, their Board of Realtors if they are a member of one and the GREC if they have violated the law. But as far as getting a financial reward? They would be a legal issue for the courts, just like any other dispute.
unionmom said:
You're writing in a guaranteed fee for the agent if the buyer/seller defaults on the contract but where is the guarantee for the buyer/seller if the agent defaults? The agent in your scenario is wanting money back for wasted time/money ... why should the agent get that and the buyer/seller get nothing if the agent did not do their job? If a buyer signs a contract and then their agent does not work to find them a home, why should that agent get any part of the commission on a home that the buyer finds on their own and why should that agent get a fee if the buyer cuts them out? If a buyer signs a contract with an agent yet an agent repeatedly misses appointments so the buyer moves on without them, why should that agent get the commission and/or the fee. And why should the agent get the double protection of the contract and the retainer fee and the buyer be basically out there with nothing? Look at all that you said they would have to go through if they wanted to try to get sanctions of some sort against the agent, assuming the agent is registered. And that still does nothing for the buyer.
And in the seller scenario ... the contract is enough protection for the agent. It is clearly spelled out (or should be) what the duration will be and what the commission will be. There is no need for a retainer in that scenario. That is locked in for the sale of the home and if the home does not sell the agent doesn't get paid. And if the agent is a slacker the seller has no recourse and they are damaged by their home being on the market for whatever period of time without selling. Where is their protection?
And on the other subject in the thread ... I do agree that in today's market (hell, in most markets) people are not realistic in the value/listing price of their home.
You are asking some good questions! And I have to be careful how I answer as you are asking legal questions that only an attorney can answer.
First off, you have the right to FIRE your agent any time if they are not performing according to the agreed contract terms. There are specific ways to do so, but as with any other contract you sign, you must consult an attorney before doing so. But they usually want a retainer fee also. ;-)
You can also file a complaint with their broker, their Board of Realtors if they are a member of one and the GREC if they have violated the law. But as far as getting a financial reward? They would be a legal issue for the courts, just like any other dispute. There are ways to handle such issues.
There is no guarantee of any fees to the agent. There is no "double protection". It's only there to help the agent recover their expenses should the other party default on their agreement, that's all. If the other party completes their duties, then it's simply added to the closing paperwork. This is no different then any other business arrangement with a lawyer, doctor, accountant, lawn care guy or fitness gym when their are service contracts involved.
Besides, who in their right mind would want to work with someone who does not respect their time? This goes as much for the agent as the clients. If the agent is not being helpful, they do not deserve any commission. I have fired clients in the past because they kept standing me up, I would expect the same if I had done that to them.