Open House Picks
Carroll Gardens 131 Summit Street Citi Habitats Sunday 12-2pm $1,650,000 GMAP Prospect Heights 603 Vanderbilt Ave Aguayo & Huebener Sunday 12-3pm $1,300,000 GMAP Windsor Terrace 169 Seeley Street Rita Knox Sunday 12-2pm $895,000 GMAP Bedford Stuyvesant 753 Macon Street Corcoran Sunday 2:30-4pm $600,000 GMAP
Carroll Gardens
131 Summit Street
Citi Habitats
Sunday 12-2pm
$1,650,000
GMAP
Prospect Heights
603 Vanderbilt Ave
Aguayo & Huebener
Sunday 12-3pm
$1,300,000
GMAP
Windsor Terrace
169 Seeley Street
Rita Knox
Sunday 12-2pm
$895,000
GMAP
Bedford Stuyvesant
753 Macon Street
Corcoran
Sunday 2:30-4pm
$600,000
GMAP
If you’re working with a buyer, your responsibility is to that person, regardless of the fact that the seller is ultimately paying you, because the person who has “hired” you is the buyer — these responsibilities include care, obedience, accountability, and full disclosure of known facts.
Ultimate legal responsibility is governed by Real Property Law §441, “which provides, in part, that the Department of State may revoke, suspend, fine or reprimand a real estate broker or salesperson if that licensee is found to have, among other things, violated any provision of Article 12-A of the Real Property Law, engaged in fraud or fraudulent practices, or demonstrated untrustworthiness or incompetency.”
So basically the buyer would have to prove that his or her broker had done any of the above for that person to be punished in any way. A situation in which a buyer’s broker had failed to disclose something about a property, for example, just to get that commission, if this were proved, would be an example.
A complaint should also be lodged with REBNY, assuming the broker is a member.
babs,
In NY, how does fiduciary responsibility work out when the seller, not you, is paying your “buyer’s” broker? To whom does that broker have ultimate legal responsibility?
Unfortunately, Redbone, your experience shows another reason to use a broker on your side– after two days of non-receipt of the signed contract, he/she would have gotten on the phone to everyone — both lawyers and the seller’s agent, and would have demanded the fed ex tracking number. If none was forthcoming you would have known you had a problem! Of course you could also have done this yourself, but brokers/agents (unfortunately) do have more experience dealing with unpleasant people, and also know many of the lawyers and brokers out there, and could have told you if the seller’s were on the up and up. Additionally, maybe if you weren’t out there on your own they wouldn’t have dared pull such a stunt.
And what was everyone thinking scheduling a closing, etc? Banks won’t issue a final commitment without a signed contract of sale and a satisfactory appraisal — maybe you were paying all cash? And how is it possible that your lawyer and the seller’s lawyer went along with this charade — certainly the seller’s lawyer knew the seller hadn’t signed the contract. Sounds like everyone involved has violated most professional ethics standards, or they’re all just really, really incompetent.
And yes the seller’s broker acted reprehensibly in this, unless the seller was lying to him/her as well, to take the exclusive away and give it to another firm (in which case he or she was really stupid or inexperienced not to have caught on).
What a mess! Presumably you at least aren’t out any money. Hopefully you’ll be able to find a better place for less money, while your former seller’s place sits unbought for a good while, until he or she will be forced to accept an offer lower than yours was.
Anon 08:50 hits it on the head. It’s not a question of whether brokers add value so much as what price you put on that value. As real estate costs have spiralled it is a worthwhile question to ask whether the kind of money brokers make is commensurate with the value they add.
Redbone — It is likely you should consult a lawyer about this, but as you seem to realize your rights are far more limited without a written contract executed by the selelr. I think this issue came up in the NY Times or the Post’s Q&A a few years ago, so you might want to search there first.
You also could consider reporting the seller’s broker if he/she in fact stated to you that the executed contract actually was sent to you (as opposed to saying that the contract was be put in the mail any day…)
I have bought and sold real estate without a broker. While brokers can add value, you have to ask if it is worth 6% (although most will discount if you only ask!)? Brokers act as buffers between buyers and sellers and that is about it. Lawyers can do that, although it is expensive (but in this day and age, not close to 6%). In the days when information wasn’t readily available, brokers provided a valuable service. But that has changed and the market is now transparent. Brokers are trying to hold onto a failed business model, made obsolete by the web (like so many other businesses). In the UK, for example, there is no MLS and brokerage is 2%. Sellers list with lots of brokers and buyers look at listings in broker’s windows and on the web. Maybe there isn’t as much hand holding, but it works fine and costs a lot less. When prices are rising, sellers are content paying brokers, but if prices are to remain stable or fall, real estate brokers will start wonder if this career choice was such a good idea afterall.
advise needed!!!!
i found a house in aug. put in an offer and it was accepted the next day. We moved quickly after that did the inspections and went into contract. We signed them and then they were sent to the seller. The seller lied and told the broker that she had sent them back. 3 weeks go by and no one has heard from her. Our closing was scheduled for tomorrow. TODAY i drive by the house and there is an open house by another agency with a 400k price increase. I realize i don’t have any legal standing because she never signed but is there anything i can do? is this legal? can a seller back out whenever the hell they want to without informing anyone?? please advise…i can’t believe i have to go through this damn process again..any suggestions on brokers that are on top of things.. thanks.
advise needed!!!!
i have been screwed big time. I found a house in aug. paid for the inspections, went into contract, signed it and it was then sent to the seller. The seller lied to my agent telling him that she fedex the contracts back…3 weeks went by..closing was scheduled for tomorrow. No one..my lawyer or her lawyer had heard from her. TODAY i happen to drive by the house and low and behold there is an open house being conducted by another agent with a 4ook price increase. is there anything i can do? is this legal..she never signed the contract so i don’t have any contract to stand by..is this ethical? does the seller have the right to back out and not inform anyone? not to mention her lawyer still has the money in escrow? please advise..i am beyond pissed. Thanks.
Wow — you are indeed lucky! Congratulations! What a wonderful story.