I've written about Fiduciary responsibility many times. I always let this responsibility take precedence. I can without a doubt see the nuance involved with the responsibility and those that do not uphold it's level of accountability.
I recently took on a land purchase with clients and we've been trying to get it done. The other side of the transaction has been amiable until this last week.
While my client still battles the bank and their requirements, we have been trying to help the seller stay in the deal. I have to say that while I can see the seller's point of view on closing this transaction....have you tried to close a land transaction lately....next to impossible.
Well, we have managed to get it done and the seller says "no way"!. We offer up our deposit "earnest money" and the seller say "no way".
My clients have made many arrangements for the land and a business transaction/business. They have much to loose.
Since the listing agent says that they won't go further and we have already suggested making the "earnest available" what is there left but for me to offer some commission in addition to the "ernest money deposit" . I offered $500 to help the seller move forward.
Now given, I pressured the Listing Agent with whether he was respresenting his seller's best interest and I also sent him an email version of post that I wrote providing a perspective on "how hard it is to close anything in this market"! I guess we can say he did not appreciate it.!
It is obvious in his response which I have to say is amazing. The listing agent came back with an Addenum releasing the ernest money deposit and instead of my offer of $500 from my commission ( which most agents wont' let you do) he wrote the addendum with $1000 coming from my commission.
Say what....this agent is being vindictive and mean. He know we won't make much money on this deal. We are doing it for our clients. It's a slam and a mean one! I'll have to investigate whether my board thinks it is unethical. I checked with my manager this am....who has 18 years experience on the ethics committee.....his advice was close it and take him to the board for unethical behavior based on article 1 and others.
I don't know that I will proceed to do this. Bad business is bad business and better left behind. I choose to focus on more positive results in this world. But you can count on one thing....this man won't be on my "good list" and he will not be a person that I tell others to do business with. Libel...no way.....truth is always absolute and solid! Rather than making a friend in this market.....we have a business result that is less than genuine! I won't hesitate to share....it is the truth, after all!
I am Jeanean Gendron, your Redding and Shasta County Real Estate Specialist. You can reach me at 530 276-7417. I answer my phone.
Oooooh...........I can see you're ticked with this one - some of real estate's less favorable moments :-(
Hi Jean,
Did you pick up the phone and discuss the issue with him once you received the contract addendum? I'm a mediator and pro-standard panel member myself (since the 70's) and when someone calls me with an issue, I always ask how did you try to work it out. I think the thing to do would be discuss it with the agent prior to moving forward with an ethics issue.
And btw, you know an ethics filing does not recover anything finanically, correct? That would be an arbitation. Good luck.
Liz, ticked...not really...just disappointed in humanity. I would never do this to anyone. But I will make sure that he's not on my Team's list to NOT do business with unless we have to. If a client has a need, we will just have to do it. It simply is not worth the stress. Thanks for the visit....and yes, real estate has these moments. The previous day was so hectic....but by 6:00 pm I told David...I feel good because my client have a chance to close this. I had three happy phone calls yesterday form them because it's all coming together. Now that's what real estate is about. That $1000 will come back to in many ways!
Hello Lynda, yes we did try to work it out. Unfortunately, he knew he had me in a corner. I offered the $500 because my client cannot offer more. He stretched very thin now and the bank would not allow him to do a credit back to the seller. The only person that could make it happen is me. This thing has stretched out over 90 days and so I can see why he and his clients are fed up. But two days.....his behavior is strange. I think somewhere along the line I offended him. I tenacious for my clients.
My Managing Broker (whose been on Pro Standards 18 years) is the one who said take it to the Board....I should have said "Arbitration". I doubt that I would do that. I am the kind of person to just move on. Thanks for the good advice. I was very tired when I wrote that last night. Always better to write and leave it as a draft the next morning. Thanks for the visit!
Ugh...
In cases like this, I do the deal and report later.
I would write on the contract or on your own addendum, given with protest for the benefit of my clients.
you are keeping your fidicuary, he needs to be reported.
Although not much will happen IMO, we have to stand on principals.
Jeanean,
I agree with Missy's advice. People like this should be reported....otherwise they get away with it and do it again, or worse, to someone else. I am reminded of Tom Braatz's saying 'never be submissive to those who would bring you down'.
Jo
Jeanean--I just finished my mandatory continuing ed for Agency and Fair Housing today. Sad that some people don't seem to understand what many of us have in the back of our minds at all times. The client ALWAYS comes first. That is what being a fiduciary means. Hope it all works out for you and your clients!
Jeanean
Seems like the tougher times are the more of these instances arise. I sure hope it works out for you!