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April 27, 2007
Brokers Gone Wild!
This is sick! This article is a perfect example for the real reason why Douglas Elliman and Corcoran refuse to join the new REBNY MLS. What a corrupt bunch of jerks! The VP agent didn't even present the co-broking agents offer!
Here's the article lifted from the Real Deal:
Suit: Elliman agent commission scam
Stanley Ginsberg
Prudential Douglas Elliman and one of its agents are in the hot seat.
A lawsuit will be filed Monday morning alleging that Elliman senior vice president Stanley Ginsberg prevented Laurence Beame -- the great nephew of New York City Mayor Abe Beame -- from purchasing a Soho apartment in order to avoid splitting a commission.
"He did it out of straight greed," said Shai Shustik, Beame's real estate broker and the lone plaintiff in the lawsuit.
Ginsberg did not respond to an inquiry from The Real Deal, but in his written correspondence with the Real Estate Board of New York's residential ethics committee, which looked into the allegations, he said: "I deny complainant's allegations that I, at any time, attempted to prevent Mr. Beame from purchasing the subject premises in order to avoid giving up a portion of a commission."
After about a year of searching for an apartment, Beame instantly fell in love with a 1,430-square-foot one-bedroom, one-and-a-half-bath cooperative apartment at 140 Thompson Street, according to Shustik, president of Manhattan Residential.
Ginsberg was the exclusive listing agent for the property. In January, when Beame offered an all-cash bid of $1.435 million, just shy of the $1.495 million asking price, Ginsberg rejected the offer, saying he had a better one, according to the suit. Eventually, Beame put in a $1.6 million offer, said Shustik.
In the end, however, Ginsberg arranged the sale of the property for the asking price to another buyer. The move allowed Ginsberg to take home a full 3 percent commission on the sale, or $89,700, Shustik said. If the seller had accepted Beame's $1.6 million bid, Ginsberg would have received only 1.5 percent of the sum, or $48,000.
Ginsberg never presented Beame's offer to the co-op's owner, according to Shustik's suit.
The lawsuit seeks to recover the $48,000 commission plus $2 million in punitive damages from Ginsberg and Prudential Douglas Elliman because Elliman allegedly covered up and took "a look-don't-tell policy," said Marc J. Held, Esq., Shustik's attorney and a partner with Lazarowitz & Manganillo.
Elliman declined to comment on the matter.
The fiasco has soured Beame on his ongoing apartment search.
"I wanted the apartment the second I saw it," Beame said. "It should have been my place, but he was a completely unethical broker. I hope everyone gets to find out what kind of person he is." By Lauren Elkies
Comments
Isn't there a fiduciary responsibility for brokers to present all offers, every single one, to the sellers they represent?
Or is real estate that unregulated in NYC? Which I'd actually believe. God forbid Bloomie and his cronies do anything to protect the people of NYC, if it might interfere with the profits of the real estate industry.
Posted by: Anonymous at April 28, 2007 2:36 PM
Interesting the article doesn't say what the price the place actually sold for is. Wonder why? My guess is that it sold for around $1.6m and the actual buyer had better finances. But this story was obviously leaked by Beame so they have no interest in divulging that info. I am not involved in this transaction at all. Just wondering why the article seems so badly reported. Although that happens a lot with lots of real estate, "reporting."
Posted by: Anonymous at April 28, 2007 6:11 PM
The article said the apartment was sold at the asking price (below Beam's final bid).
Posted by: anon at April 28, 2007 9:31 PM
The broker said he never of heard of Mr Beame or his broker but forgot about all the offers on email.Heres a guy that finds his dream apt after looking for over a yr and look what happenned a greedy broker took him for a ride -
Posted by: Anonymous at April 29, 2007 10:59 PM
FYI: The apartment sold for $1.495- or $105,000 below the asking price. Yes, I am in the know.
Posted by: Anonymous at May 7, 2007 10:51 PM
Could you provide some basic info--I am about to sign with Elliman to sell in Bklyn. I thought it did participate in the MLS. I am not a local, so I don't understand all the peculiarities of the Bklyn market. I Had been under the impression that the larger agencies did participate, and that therefore they were all obligated to show to the other large agencies.
Any clarification of how this works would be most helpful. Thanks.
Posted by: Jarndyce at May 26, 2008 6:13 PM
Oh, another question. I see in your discussion you seem to say three percent was the total commission? Three percent sounds low for a total. Do you have any idea what the usual total percent a seller will end up paying is? Thanks.
Posted by: Jarndyce at May 26, 2008 6:17 PM
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