A couple years ago I served as the listing agent on a property. I was absolutely –slam dunk — the “procuring cause of the sale. The purchaser found the property through my advertising and told me so and said she was not working with an agent. I helped her quite a bit, several emails about the property, etc. She & her husband wanted to buy the house.

Then I get a call from an agent at a big prestigious brokerage who tells me she wants to fax me her client’s offer. I mentioned I have another Purchaser interested who will be writing very soon.

Receive the Contract and it’s the same Buyer I’d have been “working with” who’d come to my Open House (through my advertising). I asked the agent when she signed the BAA with this buyer. She said: “like everyone, the same day we wrote the contract.” I said: “well, not like me.” I was really pissed. This was a situation in which the buyer would be getting money back through a relocation company if she used this brokerage. In reality, she had a crappy agent who did nothing for her until it was time to write the offer.

Then the Agent’s Broker sends me an email w/attached letter for me to sign stating that his agent was the “procuring cause” of the sale. I said: “no, of course i won’t sign that. it’s not true.”

I also told him that I’m letting this go — not signing some untrue doc — but I won’t challenge it re: “procuring cause” Why? Because my client was a senior citizen who’d moved to assisted living. . .and she needed the sale.

I’d worked really hard on prepping this house for sale — even painting the front door & removing the storm door myself b/c the workmen didn’t do it and the Open House was the next day. I staged it, marketed it and held Open Houses every weekend for months. . .but I sacrificed the 3% sales side — that I’d earned — b/c it was in the best interest of my client, the seller. The other agent might have tried to get the buyer to buy something else. . .and I didn’t want to risk it. Made no difference to the seller. Either way she was paying 6%.

Very complicated – our business.

(1) Okay, with no BAA (and just the Brokerage disclosure as sub-agent of seller), I as the Agent (sub or Buyer’s) who showed the property to the purchaser am the “procuring cause” of the sale. So, I get paid regardless of whether the buyer runs out and hires (w/a BAA) some Brokerage/agent who kicks-back 50-75% of the Sales Agent end of the Listing Commission to the buyer. BUT, that means an arbitration battle before the Board. On principle, it should be fought but most of us would prefer to forget it. Plenty of battles over “procuring cause” exist. . .and should.

(2) The downside for the Buyer is that without the BAA, a Realtor simply cannot be honest about a property in any way that might harm the seller. Without the BAA, the agent must keep in his/her mind that legally he/she cannot say or do anything that is not in the best interest of the seller. This is real bad for the buyer. And, it’s a really bad position for the agent to be in too. Whoever I am working with — buyer or seller — is in my mind and heart my client.

(3) When showing property as, technically, the sub-agent of the Seller, I must restrain myself from answering any questions OR telling my buyer customers anything that I notice about the property IF it’s not in the best interest of my client, the seller.

I never work without a BAA even if it’s just for 2 days.

I always ask buyers to sign the BAA 1st time I meet with them IF we are previewing property that day. Often, I’ve already been involved in an email exchange in which I’ve provided Home Buying information, advice and sent them listings, etc. I will, however, write the BAA so that it expires in 1 week or 1 month or even in 2 days.

And, I take the time to explain the BAA and accompanying addenda.

Would like your thoughts on that? Maybe I’m wrong but “sub-agency” remains a choice in the MLS and the BAA. Then when we write the Purchase Contract, we must again state in a legal document that we are the Buyer’s Agent and it means for THAT property.

now the house was dropped 20k and we want to put a new offer in on it.

i told sally *the rude realtor* that its just not working out and we are not buying now… she said back thats fine blah blah blah.. then some more ruid things about men and my husband

now we are working with a new one .. since i told sally that its not working out with us and she agreed.. does that mean we are out of the contract or no? and what do i have to do to make sure we are. i see how she talks to her husband but there is no reason to talk to others like that. she’s supposed to be running a business here

any advice??

So I completely agree that you should make sure you are comfortable with the realtor before signing an exclusive agreement (we knew we weren’t), and make sure you don’t get caught in a flurry of paperwork! Take everything out of his hands to read through before you sign!

randy