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Time to change real estate agents? We have lived in the house for almost 30 years, and it was probably built 40 years ago at least. This was to be an AS IS sale, and that was made clear to our niece. We know this is a hot market and can get a good price for the place without having to spend a lot of money fixing things up. It has always been a well-maintained home and aside from the occasional funny smell here and there, there isn't a thing wrong with the property that we know of. Well, she has brought us several offers with conditions attached, such as "subject to repairing the rear deck, an inspection, financing, and so on." All we want is an agent who will follow instructions and not waste our time. This is a six month listing contract, and I want to cancel it. Do we have the right? Ted and Marge, Merced readers. Duties of a Real Estate Agent often unclear I discussed these facts with the President of the Kings County Board of Realtors, Dick Jacques, and asked for his analysis. He sees this problem as an all-too-common failure of an agent to fully communicate her legal duty to the seller. "A real estate agent has well-defined legal obligations that may appear to conflict with what the client wants. In your reader's case, his niece is doing the right thing -- and legally must bring her sellers every offer, no matter what they have told her. Even if instructed to the contrary, a licensed sales person has no choice; there is a good faith -- a fiduciary -- duty to convey all offers. It is for the seller's own protection. You never know, they might change their minds and be willing to meet certain requests in order to sell the home. In this business, a lot can change in a day, and sellers often forget the conditions they have established." Mr. Jacques explained. As is -- more like once upon a time Mr. Jacques has strong feelings about the legal duty that sellers have to clearly disclose what's wrong with the property -- the things that need repair. Finally, Mr. Jacques had these cautionary words for any seller even dreaming of hiding a known or suspected defect. "Ethical sellers and agents will not try to avoid disclosure issues. In today's world, disclosure is the name of the game. The more you reveal -- even about things that seem trivial -- it's like an insurance policy. Where sellers, real estate agents and brokers get into trouble is when they play fast and loose with the truth about defects. A lawsuit is a heck of a lot more expensive than virtually any repair you might need to perform, or allow credit for, in the sales process. I tell new real estate people to error on the side of disclosing anything that remotely seems to be a potential problem. It is the fair and honest thing to do," Mr. Jacques told me. What should my readers do? To get a second opinion on this surprisingly common problem, I spoke with Lawrence D. Elliott, a Realtor in east LA county. Mr. Elliott completely agreed with his Hanford colleague and felt these situations require "immediate involvement by the agent's broker, before things get out of hand." "I have seen far too many sellers forget about small leaks, odors, or other seemingly minor problems that are later discovered by an inspector -- or, worse yet -- by the new owners after moving in -- and instead of something easily resolved before the sale, now it's lawyers and lawsuits in the worst cases. A competent real estate professional helps sellers find buyers and also keeps them out of trouble. Sometimes, this means being told the things you might not want to hear, but must hear, as the consequences of failing to comply with the law are huge." "Buying and selling a house is itself an emotional experience, but few people understand just how much is at risk if the transaction is not handled ethically and honestly," Mr. Elliott stressed. "You never want to get to the point of asking to be let out of a listing agreement. If you feel that your agent isn't performing as per the contract, raise your concerns early, and document them. In today's market, few brokers want unhappy clients, and if you have carefully set out all the reasons why your agent is dropping the ball, and have allowed a chance to correct the problems, you are in a much better position to walk away," Lawrence Elliott concluded. My recommendations My readers need to hire a home inspector and document what is really wrong with their 40 year old house. They also do not need to loose elsewhere for a real estate agent, and should give their niece a chance. As Dick Jacques accurately summed up, "We tend to become blind to the many little things in a home that technically should be disclosed. Having a home inspection performed is powerful evidence the homeowner made a good faith effort to find the things that needed repair and then provided that information to all potential buyers. It's plain common sense, the right thing to do, and should be recommended by the selling agent in most cases." You can contact Lawrence Elliott at 909-923-5491; www.LawrenceElliott.com and Dick Jacques at 559-584-0473; www.DickJacques.GetsHomesSold.com Dennis Beaver practices law in Bakersfield and enjoys hearing from his readers. His e-mail is Lagombeaver@hotmail.com. (June 30, 2005) Copyright © 2005 LEE Enterprise Central California Newspapers. All Rights Reserved. |
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LAWRENCE D. ELLIOTT of Prudential California Realty is a nationally published author and is YOUR Real Estate professional for Los Angeles, Orange, San Bernardino, and Riverside counties, including the San Gabriel Valley, the Pomona Valley, and the Inland Empire. I offer Properties-By-Email, an MLS search, HUD Home Information, and more. I will assistance you with down payment assistance programs, low downpayment programs, fixer upper properties, FHA loans, seller financing, bank owned homes. You can also find out about HUD homes, single family residences, townhomes, townhouses, special homebuyer opportunities, foreclosure homes, help with bad credit, condos, notice of default help, relocation assistance, P.E.R.S. information, investor programs, special down payment assistance programs, low down payment programs, getting a market analysis of your home. Cities I service include Rowland Heights, Rancho Cucamonga, Mira Loma, Rubidoux, Pedley, Covina, Colton, Cucamonga, Rialto, Pomona, Fontana, Chino, Chino Hills, Upland, Whittier, La Puente, Montclair, Phillips Ranch, La Verne, La Habra, Bloomington, Corona, Walnut, West Covina, Riverside, San Bernardino, Alhambra, Alta Loma, Etiwanda, San Gabriel Valley, Baldwin Park, Pasadena, San Marino, Brea, San Dimas, Diamond Bar, El Monte, Hacienda Heights, Highland, Moreno Valley, Norco, Ontario, Redlands, Jurupa, Claremont, homes for sale in Chino, and Yorba Linda. Pomona real estate Lawrence D. Elliott also has published commentaries, commentary, editorials, and essays.