Comment

Comment by Brigitte Powell on August 17, 2010 at 1:46am

Sorry this was so long, but this is what we make sure our buyers and sellers understand when they hire us for our services

Comment by Brigitte Powell on August 17, 2010 at 1:44am

Mori, sorry it took me so long to respond:
To explain it best, I took this from an article on their website by Real Estate attorneys Craig E. Buck and Teri Buck with offices in Fredricksburg and Alexandria, Va. and am hoping that this will explain it. They were explaining the process of Real Estate in Virginia to buyers and sellers. This was changed in the 1990's (can't remember exactly what year, but you can look it up if you are interested). As you can see it is the "standard of ordinary care - what a reasonable man would do"

"THE AGENT
Real estate agents are licensed professionals. The Virginia Real Estate Board, an agency of the Commonwealth of Virginia, closely governs their activities. Agents undergo extensive training before receiving their license and most companies provide continuing educational programs. A "REALTOR" is a member of the National Association of REALTORS and bound by a Code of Ethics. Most agents in our area are also "REALTORS."

Real estate agents can provide services to both the buyer and seller. Agents must disclose, in writing, which party they represent. You will be asked to sign this disclosure acknowledging you have received it. Agents are usually paid by the seller, at settlement.

All commissions are negotiable. There is no “set” fee and you can find agents willing to discount their fees. There are also limited-service companies that will work with you for a flat fee rather than a percentage commission.

As a buyer, you may hire an agent to represent you. This is known as buyer agency. Buyer agents will expect you to sign an exclusive retainer agreement and you might be asked to pay an upfront fee. The retainer fee is usually refunded when you settle. The agreement may be “exclusive.” That means you agree to work only with that agent. In most cases, the seller pays the buyer agent's fee. However, if you sign an exclusive buyer agency agreement and buy a house from someone else, you would owe the buyer agent a fee.

Agents can pre-qualify you to determine your appropriate price range and financing. Agents locate suitable properties, provide information on comparable sales, help select financing, and write the sales agreement. The agent can also act as a "go between" in the negotiations between buyer and the seller. After writing the contract, the agent arranges for other services, such as a termite inspection, and processes the case to settlement.
However, the agent is your agent for a very limited purpose. The agent does not owe you a duty of fiduciary care -- the high standard imposed on attorneys and trustees. The agent answers to a standard of ordinary care -- what a reasonable man would do. The agent must disclose to you all known material matters concerning the condition of the property. The agent is not under a duty to take any special precautions or do any special inspections on your behalf. The agent may rely on statements from the other party unless it is obvious they are false or known to be false. If the agent represents you, the agent must also disclose known material aspects of the transaction (in addition to property condition)."

Comment by Ben Benita on August 16, 2010 at 10:12am

Have him, or someone, contact the legal department for Wells, most any language CAN be removed if you push back on them......if not, go directly to the Ivnestor and have THEM handle the removal of any language.....

There's ALWAYS a way......
;-)

Comment by Bob Wienk on August 16, 2010 at 9:43am

Well, I got a long response from a local real estate attorney on his opinion of the new addenda from Wells Fargo, but I am not going to publish it here because, no surprise, he recommends that it might be wiser for the seller and the agent to allow the house to go to foreclosure, rather than risk being sued. I responded to him that we only earn a commission when we complete a successful short sale.

In other words, as is often the case, involving an attorney can be a detriment even when the attorney is supposed to be on your side!

He did agree, however, that creating a fiduciary obligation to the lender would create a conflict.

Comment by Sherrilee Denton on August 15, 2010 at 4:05pm

Mark, I would appreciate a copy of the addendum you referred to also.. [email protected]
Thanks Mark!.

Comment by Mori Langshaw, Sr on August 15, 2010 at 1:40pm

Mark, I'd like a copy as well. Thanks

[email protected]

Bridgette, what do you mean you don't have fiduciary responsibility to the seller?

Comment by Karyl Moore on August 15, 2010 at 11:49am

Mark, I'd like a copy, too. Thanks! [email protected]

Comment by Brigitte Powell on August 15, 2010 at 11:24am

Thanks Bob....not su sure an attorney will stick his or her neck out on that one. I will pass it on to my broker and she will most likely ask Lem Marshall our VAR attorney.

Comment by Brigitte Powell on August 15, 2010 at 11:17am

Right on Ben :-) Thanks Mark :-)

Comment by Bob Wienk on August 15, 2010 at 10:07am

Thanks Mark! Got my copy already.

If I can get an attorney's opinion, I will post it.

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