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Brian Kennedy - WWW.IHMGroup.Net

Is there implied client ownership from a phone call?

By: Brian Kennedy
Monday, April 30, 2007 8:45 AM

I have an interesting situation that I would like help rationalizing.
On Saturday, one of the other agents in my office scheduled a walk through on a listing they have.
The potential buyers showed up early and disclosed that the agent told them that if she could not make it, someone else would be there and could handle the tour. The other agent didn't bother to arrange any of this in advance with the rest of us so it all came as a surprise. I was there catching up on paperwork so I took the clients to the appointment and handled the situation. Long story short, the other agent didn't bother to show up at all so I ended up spending about an hour with these clients answering about 100 questions, running listings, providing floor plans and what not. When we called to tell her that her clients were on-site and that I was taking care of them, she was upset we were interrupting family dinner and said "Well I will give him a referral fee."

On Sunday, the clients asked me to send them more paperwork and arrange visitations for listings. I asked the clients if they had an agreement about representation with the other agent. They told me no that the only contact they had was just the phone call to arrange the visitation that she bother to appear for.

They have now asked me to represent them.
What would you do?
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Comments

Todd Clark
Member Since '06

Todd Clark said:

I would cetainly talk to your principle broker. This could cause some serious office politics. But I know what I would do!

April 30, 2007 8:08 AM
Mary Welch
Member Since '04

Mary Welch said:

Brian, I know what I would do too, but I agree with Todd, you need to tell the story to your Broker for direction.

April 30, 2007 8:15 AM
Cathy  Clark
Member Since '06

Cathy Clark said:

I agree with Todd.  Speak with your principal Broker.  If the Agent didn't bother to show up, or make other arrangement, I think the Broker would be upset because it reflects badly on the office, in general.  What if you hadn't been there? You were there, you took care of it, and probably saved a lot of bad word-of-mouth against your office.  That sale, if there is one, is yours.  I don't think I'd even give her the referral fee.  She must not need the business, anyway.

Cathy

April 30, 2007 8:15 AM
Pamela Stocks
Member Since '05

Pamela Stocks said:

With no agency agreement, and with the fact that the agent didn't bother to show up for the appoinment, I would say that the clients are fair game. You run the risk of alienating the clients all together if you tell them that you can't represent them because they just happened to speak to someone else in the office first. If you want to be nice, you could offer that agent a small referral fee, but I wouldn't hand over the clients. I agree with Todd though- It's probably best to talk to your Broker in Charge first!

April 30, 2007 8:17 AM
Phil Anderson
Member Since '04

Phil Anderson said:

What great (sad) story, Brian.  Thank you for sharing it.

I'm sure there will be lots of different views on it, but, were it me, I would:

a. Document the situation thoroughly (just like your post, above), in case I had to defend myself with the Realtors' association ethics board, and

b. Discuss it with my principle broker (if I had one) and if OK with the PB, I'd move forward with my new client.

I think that you touched all the bases; You called the other agent who was not responsive; The "clients" told YOU that they wanted YOU to be their agent, and; They have not signed a committment agreement with the other agent.

But know that this may not sit well with the other agent and that you may be creating lifelong animosity with her.  Believe me when I say it's HER fault, not yours, but just know (as I'm sure you do) that she's going to have a completely different take on this in HER mind.

Good luck, Brian, and please let us know how it all shakes out!

Phil

www.newportlandhome.com

April 30, 2007 8:20 AM
Vance Remele
Member Since '04

Vance Remele said:

My opinion on the whole matter is No sign agreement No representation

A phone call also in my opinion is verbal and we all know how a verbal conversation can go either way..

I would have them sign a buyers agreement, the customers ask you to!

That other agent is out of luck in my book, if you give her a referral it would only be a gift she don't deserve..

Vance

April 30, 2007 8:24 AM
Klaus Nicholson
Member Since '07

Klaus Nicholson said:

Looks like you have a new client to me. Get the buyers agreement and sell them a home. As for the other agent you owe him/her a big thank you for being lazy or too busy.  Referral fee, never!   Way to go, I love to see agents working and getting rewarded for their efforts.

Realtor, Columbus Ga

April 30, 2007 8:43 AM
Brian Kennedy
Member Since '07

Brian Kennedy said:

MY PB's exact words - "That must have been one fantastic dinner. Take care of your clients."

April 30, 2007 8:51 AM
Gregory Bain
Member Since '03

Gregory Bain said:

I call the other agent as soon as the people announce why they are there. If they want, I may split the commission. If they don't respond or respond in a negative manner I may give them a referral. If they give me attitude- they can take it to the broker. The customers are mine. Your broker should congratulate you on your fine job and high ethical standards.

April 30, 2007 9:00 AM
Ronda Kaufman
Member Since '06

Ronda Kaufman said:

I have to agree with Vance and Klaus. Good Luck with YOUR new client. As for a referral fee, her wonderful dinner she was eating should be enough for her..Agent's like this are why we have the reputaion we do. You are among the ones who are trying to overcome this sterotype. Go for it!!!

April 30, 2007 9:15 AM
TOM DAVIS
Member Since '04

TOM DAVIS said:

Lots of good advice above!  Document and discuss with your broker.  Above and beyond the fact that she has absolutely nothing coming from the relationship with these clients, how about the crappy service she gave (or didn't give) them!  If I were the buyer and she were the realtor I certainly would not deal with her.  Family dinners are important, but she could have given you, or someone else the heads up so they weren't just running around on their own.

April 30, 2007 9:29 AM
Ron Tarvin
Member Since '04

Ron Tarvin said:

Maybe try to keep the peace and help the clients and offer the other agent a small referral fee?   I know that you don't HAVE to but it would be a peace gesture...

April 30, 2007 9:41 AM
Rob  Miller
Member Since '06

Rob Miller said:

I am a broker myself and if this happened in my office, I would appreciate the heads up on the situation so that I can discuss the situation with the unattentive agent. If the other agent was truly concerned about the client, I know that I would have dropped just about anything to get to the client. If I couldn't, then I would compensate you for your time and saving my client. Get your buyers contract signed to secure them as your client. Congrats on picking up a new client!! Now sell them something!!!!

April 30, 2007 8:14 PM
Christine Hart Howlett
Member Since '06

Christine Hart Howlett said:

No one owns a buyer, unless there is a signed exclusive agreement.  Shame on the other agent for putting this off on you, and bravo to you for picking up the pieces.  I wouldn't give one cent to the other agent.  She did absolutely nothing to deserve it.   A hard lesson learned, but I'll bet she'll never do that again.

April 30, 2007 10:10 PM
Cyd  Weeks
Member Since '05

Cyd Weeks said:

I'm in Florida and work for a transaction broker, so we don't have buyers agreements.  If that had happened in our office, a phone call would have been made to the agent the customers came in looking for.

If she had made an appointment with them and they didn't just show up, something would have been negotiated with her right there on the spot.  If they had walked in on their own looking for her, something would have been negotiated right there on the spot.   And that would have handled that.   If she were to be getting a referal fee, or, it was the other way around, she would also be responsible for doing part of the work.   It just makes more sense for us, in our office, to treat it that way instead of having difficulty between agents in the office long after the customer is gone.    The broker would have also been told how the situation transpired so she could counsel the original agent on how/what to do in the future with the BROKERS customers.   But, that's just us.   In other offices, I know from experience, the customer would have been 'taken' by the agent in the office.  Hell, I've had phone calls come in to the office where the agent in the office said I was on vacation or whatever and I wasn't.   I've stood in offices waiting to pick up a key for a showing and listened to the up agent say to a caller..."oh, you received a post card?  From who?  Oh, you don't need to only speak with her, I can help you".  (actual conversation)

I don't want to work in offices like that.  

May 1, 2007 6:59 AM
Don O'Wade
Member Since '05

Don O'Wade said:

There are a lot great views on this situation and since the customer that turned into a client has told you that they want you to be there agent of representation then they have made it clear to you that they have fired the other LAZY agent and who has hired you.  You still talk to your principal broker and document the events.  The fact that there is a document that we are to use to declare agency representation - does not mean a hill of beans when the client says to that agent "YOUR FIRED..."  They can choice who they want to represent them in a transaction.

May 1, 2007 9:33 AM

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