florida shortsale - help! realtor is trying to pull a fast one
let me begin by saying "I" too am a licensed realtor but i don't specialize in shortsales or traditional home sales. i respect the profession and ppl who behave professionally. which is why it BURNS ME that this idiot did this!!
i am the 'buyer' on a shortsale prop in weston, florida and we recently got the bank acceptance letter after 8-month wait. the title company prepares a prelim-HUD for me and i see several fees which look questionable. turns out the realtor snuck in a $3200 fee to HIMSELF under a vague company name when all along he said this fee was charged by the Title Company to compensate them for the shortsale processing. title company says nope that they do not charge a fee to do all the work (continually calling the banks, submitting everything through equator, negotiating, etc). bottom line: realtor never disclosed fee was for him or his company. but i signed an addendum agreeing to it (thinking it was for title company.) p.s. did i also mention i gave up my 3% commission to compensate him for the time-intensive nature of shortsales? he didn't want the bank to reduce the 6% so he listed another agent in his office as buyer's agent on the contract and the bank approved his full 6% commission. but he is still so greedy he tries to stick it to me for an extra $3200? so realtors what say you? i obviously don't want to pay it and emailed him a letter letting him have it. he has not replied yet. i want to NAIL HIM TO THE WALL on sheer principle alone. what do you think? what legal recourse do i have? file complaint against him with FREC and governing agency of mortgage brokers? (he has both licenses). is this a legal issue? an ethics violation? a criminal matter? any help would be appreciated. |
Replies to This Discussion
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Permalink Reply by Cyndi Marler on
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Talk to your broker first and foremost. Never go over or around your broker.
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cyndi, i would normally agree with you...but let me give you some background..i work for a builder of luxury condos. we mostly deal with foreigners who buy cash. my developer has NO IDEA IN THE WORLD how a general real estate office operates. he assigned one of the agents in our office to be broker..in name only. it's really an empty title. she does not perform any of the duties a normal broker would. developer sales is a different type of animal. i wish i had a broker to consult but i'm kind of on my own here. that's why i'm seeking help on these boards.
also, i was the buyer on this contract, i did not use my license for this deal.
do you think i should contact this agent's broker directly ? or get a lawyer to do so?
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imran, im not a shortsale expert but during months of research on this board i've seen other shortsaler's say that you can list someone else in the same brokerage to double-end your commission. also, he disclosed to me that he would do this and so i have no problem with it. there was full disclosure.
i have a problem with the $3200 fee because he intentionally set out to defraud me. so absolutely i was blindsided.
i think you are getting confused with the issue of the commission vs the issue of the false fee. i only mentioned the former to show i was operating on good faith to compensate him for his time. yet his greed was such that he still tried to stick me with a false charge.
also, i have NOT signed the HUD. i just got the prelim hud the other day and its when all this came to light.
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another question for you guys: i have been so ANGRY about this that i want to crucify this agent. however, after a 2-day cool down period i'm trying to assess what would be the BEST TACTIC in how to handle this. "Best" being that i can get the charge removed and for it not to impede on me closing on this property.
at first i was thinking i should issue harsh threats and go for the jugular.. ie, intentional FRAUD. ethic violations. respa violations? complaints with all the governing boards to the licenses that he holds. you know the works.
BUT will that force him to take a stand to protect/defend himself against fraud charges?
OR
should i instead use a mild threat? like sending the agent & title company an email stating that i'm disputing the charge. saying that there has clearly been in error with the charge and could they remove it ASAP as we don't want a mistake to hold up closing. (mild threat about not closing).
What do you guys think?
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Permalink Reply by Satar Naghshineh on
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I read all the posts regarding this matter. The listing agent is very smart on how to maximize his profits. Regarding legality, I have no idea as I am a broker in California. In my state, he would be breaking the law.
Here is how I would approach it. Write an e-mail to the listing agent stating something along the lines of:
Dear Mr Agent:
I am in receipt of the preliminary HUD statement dated 14-April-2012 for the transaction on 123 Main Street Mytown, FL. I am confused as to the $3200 charge to me in order to purchase the property. When we wrote the purchase offer, you explained to me that the title company will charge me $3200 to process the short sale. I agreed to the terms but after speaking with title, they said that the charge does not belong to them and that the company that is charging this fee is indeed a company that you own.
You never disclosed this fact to me. I would have not have agreed to such a charge if I had known that the fees being charged to me were in fact going straight to a company in which you own. This is especially true as I am a licensed sales agent and I already surrendered any commissions owed to my broker in order to act as a principal in this transaction. Both the seller and I have a relationship with your brokerage, I do not have any relationship or further obligation to pay a fee to another entity you own. I ask that you instruct title to remove this fee from the HUD in order for us to proceed with this transaction.
Regards,
Arod
See how he responds. My next step is to have my agent (who is supposed to represent me in this transaction from his brokerage) to rebate $3200 from his commission to offset this fee. I know it is all going to the same agent regardless, but you need to use all means to negotiate this in your favor. My final step if that fails will be to talk to the broker directly and state that you were never disclosed that you had to pay a fee to his agent's company in order to purchase a short sale from his brokerage. I bet his broker doesn't even know his agent is collecting additional fees pertaining to a real estate transaction. I would even ask "What type of relationship does his brokerage have with his agent's company and if that relationship poses any liabilities to the real estate transaction." Questions like that should get a response.
If it all goes to hell (agent and broker do nothing and agent threatens to kick you out of the transaction), consult with a real estate attorney. A broker acting in dual capacity on a transaction and not properly disclosing fees to all parties must be breaking some type of law (I would think).
Good luck and keep us posted.
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Satar Naghshineh: thank you so much for your reply. it is extremely helpful to me. Even though my initial gut reaction was to nail this guy perhaps a more tactful and diplomatic approach would be the smartest way to reach my end of goal of getting the fee removed and closing on this shortsale. if all goes to hell like you mentioned, then I WILL CRUCIFY THIS GUY. in fact i will make it my mission in life because of how deceitful and unethical he has been.
my closing is about 3 weeks from now so there is plenty of time for him to trip up the sale but i think he would be very dumb to want to start the process over with another buyer.
He did respond to my first email in which i accused him of misleading me and acting in an unethical manner. basically he said my email was "not completely accurate and forgets quite a bit of work done." the work done being mers verification and irs tax consultation to seller (asking for full forgiveness of loan).
can you believe this? obviously he's trying to deflect from the real issue which is that he intentionally committed fraud by telling me the title company was getting paid the $3200 dollars for processing short sale. like you said, he is smart... and very devious and deceitful.
do you have any other suggestions based on his response? any help would be greatly appreciated.
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Your goal is to get the house without paying the $3200. The tactful approach I outlined should work. Don't threaten him directly. Also, should he attempt to kick you out of the transaction, chances are his next buyer will be represented by a buyer's agent and he will lose the commissions he was going to get from the agent in his office. Like I stated before, if he attempts to kick you out, then seek legal help. I bet his listing agreement doesn't have anything regarding the $3200 processing fee. If he doesn't have listing agreement about the $3200 fee and he doesn't have an agreement between his company and you about the $3200 fee, then I do not see how he can collect that money even if you signed a purchase agreement.Don't bring this up with him. Keep all your aces in negotiations to yourself.
Like I stated before. Just reply to his e-mail re-iterating the facts of the issue. Respond back to his e-mail and apologize that you acted emotional. Just state that if you had known that he was asking for additional compensation that you would not have agreed to those terms. That he must remove the $3200 charge as he did not properly disclose the fee to you.
After you get the house with getting the fee removed, you can then crucify him and his broker. By then, you might come to realize it is not worth it! I also read Meli's response. Do not close with paying this fee. It is harder collecting the money afterwards.
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thank you Satar... i really do appreciate your help. i feel like a caged tiger and i am trying to control myself and do the 'tactful' thing like you suggest so i can close on this deal correctly. whew..breathe. lol
got it.. remain calm and get what i need. don't threaten and don't force him to take a stand and fight.
agreed about getting fee removed before closing.
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Permalink Reply by Meli Van Natta on
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Close the deal and then take him to Arbitration (along with his Broker) at the Association of Realtors that he belongs to. Explain to the panel how you were misled and ask for the refund of the additional fee.
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meli, i have about 3 weeks before my closing. don't you think i should try to get the charge removed before closing? once the money is gone from my side i'd think it's a lot harder to recover.
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It's possible you will not recover it, but if everything is as you represented it's more likely that you will be awarded the $3200 along with your costs to file. On the other hand, if you push too hard now to get it removed, it could blow the deal. An interim step would be to talk to this agent's Broker, since you would be naming the Broker in your arbitration as well.
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i called the florida realtors free legal hotline today and they werent much help. they sympathized with me and said he broke all sort of ethic rules through deceptive and misleading practices..etc.. but i had a legal question and he skirted around it b/c i think he really wasnt sure.
so maybe someone here knows...
Does an agent in a florida real estate transaction have a DUTY TO DISCLOSE his affiliations or relationship with a company seeking to to be compensated in a real estate transaction?
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