This is a hard lesson. But as described, I find most builders will NOT pay a commission if you did not register them or accompany them on their first visit into the sales office to speak with the builder's sales staff. Do you have a buyer broker agreement that protects your commission? Have you spoken to the builder or your buyers?
In my personal opinion, it will be hard to argue procuring cause IF your clients won't support or affirm you were the reason they bought there. Like Charles recommended, you may want to seek advice from a real estate attorney in this matter or ask your local real estate board/association. I know CAR has a legal hotline...
Tell us how it goes!
Licensed Associate Broker
Accredited Buyer Representitive
William Raveis Legends Realty Group
A few sales offices in these knew projects are requesting on the first visit to sign in with your buyers. But since
there seems to be a miscommunication by your clients I would be firm in explaining to the sales office WITH
your clients that you are their agent. This had happen to me a few years back. I took back my clients and asked for the manager explained the situation very similar to yours and they accepted the new sign in, took my card, that was it.
If this sale office is making a problem for you and your client on this issue, I would contact the Real Estate Board. There should be no reason this sales office would want to interfere with an already established relationship. If they do I would suggest having an educated conversation with the manager. I am sure they would not want to end up in a mediation or a court issue over something that is an ethical solution. They are aware that they should of made it clear to your clients that you needed to sign in with your clients. If they did not ask your clients that is not an excuse, they know better. This would be considered unethical and steeling, claiming ignorance is not ok to steel clients. They have come up against this before don't let them tell you they have not.
Denise A. Szyszlo Realtor
Office:: (408) 369-2000 x319
Mobile: (408) 768-7097
Fax: (888) 334-0888
419 E. Hamilton Ave, Campbell, CA 95008
I definitely understand your frustration and can shed some light on the situation since I almost had the same situation happen to me. The most important thing to do as soon as you visit a new development site is to sign and register your clients ASAP, this will assure you of your broker co-op commission. Also, it must be in person during the first visit with a Sales Rep. Otherwise, it can be considered free game for the sales rep present.
For the most part, if your client has already signed in without you present during their first actual visit and meeting a sales rep, you've lost your privileges to the co-op commission. It's a standard procedure placed by the builder and many times, they would have a notice or sign stating so.
I wouldn't give up though, ask your buyer to vouch for you and see if you can speak with the sales coordinators manager or marketing director. I would plead my case and document the exact dates and times that you did take your client there to the site and see if they would change their mind and let you register your client.
I did not sign in to the complex log book with my buyers at the same time they did but I did sign in when I came there alone to obtain info for my buyers.
The complex is having an event soon where buyers can come and put in offers for the units. When I called in to get more info on this event so that I could bring my buyers there to possibly put in an offer, the sales rep advised that they did not know that my buyers was working with any agent and didn’t have any recollection or records of me, and therefore doesn’t recognize me as the buyers’ agent or should I receive a commission for the co-op.
My logic is this: Even if I bring my buyers in for the very first time to this event and put in an offer, they would still be my buyers and I am there agent. Is this correct?
The agency relationship is between the buyers and the agent and shouldn't have anything to do with what the selling agent or sales rep for a new construction complex has to say? Are they trying to exclude me to get the commission themselves. Is there a line crossed here or did I miss something.
Please don’t judge/patronize me for asking this question re: experience or knowledge or whatnot. If you could provide your input, I would truly appreciate it. Thank you.
There is no way for the Builder to connect "who you were gathering the info for", nor did
the Buyer indicate they were working with you on a form.
Unless you have a Buyer Broker Agreement you do not have an Agency, as the Buyers have formed an Agency with the Sales People at the Development.
Now you should talk to the Sales Manager at the Development and see if your potential commission can be re-assigned.
Do you have a buyer broker agreement on file? I agree that a paper trail may help you. However, since the developer is selling with their paid staff they have rules in place which stipulate how they are going to pay. If they are not listed on the MLS they don't have to compensate. Sometimes they will only list one and that is the only one they will pay on or unless you sign them in first. Some developers are better to work with than others. I have found Axis and KB to be very good. Toll Brothers is pretty firm in their rules.
Before you write the contract you may want to get the developer to sign a commission agreement. Should they agree to that then write your offer.
Because of this dynamic we ALWAYS tell buyers at the beginning of our engagement that if they ever want to see a new development they need us to come otherwise they will likely be stuck with the sales reps and you always want your own reps. This avoids dealing after the fact.
Lance King/Owner-Managing Broker
Yes. Many of us have been in the same position. You work for months with a client. You even bring your client over to see the new construction, but the sales office is closed, so you cannot register yourself and you client. Later your client stops by without you, when the sales office is open, and the sales representative for the builder tries to take your client from you.
I recommend that the first person that you talk to is Your broker of record. How does your broker of record want to proceed?
Whether or not you are the procuring cause is really a legal question, and that is really a question for a good Real Estate Attorney. The Real Estate Attorney who represents me and many other REALTORS on issues like the one that you describe, is Ron Rossi. The telephone number for Ron Rossi is: (408)261-4252.
Charles Butterfield MBA
Real Estate Broker/REALTOR
Cell Phone: (408)509-6218
Email Address: email@example.com
The rule of new developments is well known in the Real Estate industry and I mention it to my buyers when I 1st meet with them. If they think a new home might be of interest please allow me to accompany them on the first visit.
You can ask the complex rep but if they say no they will point you to their written policy.
The learning process for you might an expensive one - for you. Once again I suggest getting training because what you do not know can affect you.
Pat Chadwell, broker
Realty World - Residential Specialists
408-927-6565 x 11
CRS, SRES, CDPE, CIAS, ePro, SFR