I met with a buyer in April, 2008 - showed properties and wrote an offer on a Short Sale.

Dennis did you have " Exclusive Buyer Brokerage Agreement" with your buyer ? if not then  buyer in essence is a free agent and can do as pleased.

I have problems with his ethics in this matter but will offer him a 25% referral for the buyer. He agreed and traded paperwork.

In my opinion you owe 25% since you have a sign agreement pay it and go on to the next case.

Vancepinion

Judge Judy couldn't have said it better, Dennis. Like I said before, this would be a great job if it weren't for the buyers, sellers, and other agents. ;-)

Legally, as Vance pointed out, you have a very shaky position.

But ETHICALLY with the NAR and your local Realtor association, I believe you have an almost bullet-proof case where you may be able to recoup the 25%, or certainly get the other agent sanctioned.  

(*The case being that this other agent was tearing the sale apart and you had no choice but to offer him $ to get him out until you could get closed.)

Dennis, you took the high-road in just trying to get the deal closed.   Good for you.   Do your best and get it closed.

Then file a complaint with your Realtor association against the other agent.  (You have 6 months after the "event" to file.)

No, you didn't have an exclusive contract with the buyer, but you wrote an OFFER which he signed.   After the fact, in comes this new agent, WHO IS AWARE THAT YOU AND THE BUYER HAD AN OFFER IN FRONT OF THE SELLER.

THAT was an ethics violation.

Good luck to you, and please let us know what you decide to do and how it turns out.

I'd like to know how this comes out as well.

The nerve of some people. I had a buyer call to view one of my listings the other day. Even ask about another home in MLS and the address. She is on my web que and registered. So that is how she found the home on Point 2.  Showed them then she said her friend is a real estate agent, would be handling the transaction. Ok, since it was my listing, I took it in stride. Then the other agent took 2 days after they put in the offer to get it to me . Then they low balled. So we came to a middle ground area, and got stuck. So I suggested the buyer pay part of the closing costs including the buyer agent fee. Well heard nothing back for a week. Now they are looking at it again. But I thought, hmmm. Giving biz and $$$ to the friend for nothing, let her pay her fee for doing nothing. Or calculated  it would be a give back anyway. The other agent does not typically work our market area either.

I think the ethics committee should hear this one .  

A sign" Exclusive Buyer Brokerage Agreement" would have prevented the other agent to get into the mix, if in fact the other agent entered into into this, all well knowing there was a Exclusive Buyer Brokerage Agreement then in my opinion ethics violation would be forth coming.

But now we have a potential Buyer and an agent( Realtor) who suppose to be the buyers best Bud, all arguing about "Commissions" no less.

Remember TO, P.Y.O.A and always get sign documentation.

In my opinion Yes ethics committee  should they get  involved ! they would have a field day with this one .

http://www.floridarealtors.org/LegalCenter/index.cfm

" Forgetaboutit" and  move on.

Well, let's change it around a bit. Since we only know part of the story, lets pretend that Dennis took the buyer out on and off for six months looking at homes. They are not just salesman and customer they are friends. They know each others children and ages and how long they have been married, they have got each others history.

Dennis has been a good salesman and friend but they just haven't found that right house. After a while the communication slips from once a week to once a month. Dennis has placed the "buyer" on his drip mail and before long he is only leaving messages on their answering machine that go unanswered.

Then one day Dennis meets up with his "friends" and customers face to face in the grocery store. They talk and the friend finds his conscience and tells him that they have found a house. It was in his drip mail and when they drove by it they became all excited and called the number on the sign.

Of course, I'm only pretending. I don't know what really took place. But, let's say it played out this way. Does Dennis deserve to get a piece of the pie, or, not?

As for going before an "ethics" committee - do you really think anyone there is more ethical than you and the other agent? IMHO, you pay your dues to support those free loaders that can't sell and didn't put any money into a 401K. Going to the board is a waste of time. Get over it.

Greg said, "As for going before an 'ethics' committee - do you really think anyone there is more ethical than you and the other agent?"

LOL...well said my friend ;-)

As I read this, I was wondering if this other agent that parachuted in late was perhaps a brand new agent and friend of that buyer. If so, this new agent may need to be talked to about how much damage he can do to his own business by making a bad name for himself. Tell him you have been in the business a long time, know many people and "share" information within your network.

Chances are the small commission he gets on this transaction will not come anywhere near the damage a bad reputation could cause.

I always like to talk directly to someone that does me wrong before going the "official route" (ethics commitee, etc.) For one thing, the "official route" often is not as powerful or effective as we might think it would be.

"And Now A Public Message For all Realtors"

From the ethics committee spokesperson.

http://www.youtube.com/watch?v=ho_m6sVBGsM

I work for a broker who is working with the our local mls on procuring cause cases. We discussed a case very similar to this in one of our weekly meetings. I believe you have a solid case without a broker buyer agreement, although that would make it cleaner. The other agent is standing on eithical quicksand. The fact that you enabled the deal to go through and not let a commission fight get in the way speaks very highly of you. I think a call from your broker to their broker before filing against the offending agent might get the complete commission and a needed lesson to this agent. Ethics is what separates us from hustlers and con men or women.

You involved the brokers in this, I presume?   :)

BBA does not ensure procuring cause (like Mike just said) . . . being the first to bring the property to the buyer does.

The buyer's extortion attempt was probably result of the agent friend involving himself in an established agency relationship (determined via agency disclosure and your efforts in this transaction). Otherwise why would the buyer care who got paid what?

That is where the agent likely violated NAR COE (16?) by interfering.

You didn't just take the high road, Dennis. You behaved ethically by not letting a controversy between agents disrupt a sale in process.

Probably two NAR COE/SOP violations if a committee concurs. Let us know how it turns out.

PS. Bill nailed it. Agent got referral fee but the price he will pay in bad blood will exceed it even if no further action is taken . . .

Just now reading this.  Sounds terribly familiar.

I once HAD an EXCLUSIVE Buyer's Agency Agreement, and STILL had another agent get in the fray, when (and this is low) ... I was in the HOSPITAL!

Buyers went to an open house while I was on my death bed (but had an agent covering my biz).  Open House Agent there is sooooo nice. Offers to take the buyers into her personal house for the weekend.  Yes, really.  Then proceeds to take my CLIENTS back to a house we had even ALREADY presented an offer on (a low ball that was declined) and re-write and go to contract.

GAH!  

Long story short, my BIC at the time didn't back me up a dime, cause it was a big local company that she didn't want blackballed by. I stood my own ground with that agent's BIC, and told them that she could have my nasty customers (they literally ran me into the hospital), BUT if they wrote a deal on ANY of the homes that I had showed them (all 36) that she would not see a dime.  We had an attorney draft and agreement. Buyers backed out of their initial offer, and went elsewhere but then that agent and buyers promptly got sued by the Seller for breech of contract. Was settled out of court I understand.

Couldn't go to board without firm support, so I left that company that didn't back me up, and started my own.

He he .... freakin' Karma can be great sometimes.  Just let it go... if not in this life, then the next ya know.....    :-)