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The first thing agent did was to make me sign a contract


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2011 Jul 5, 6:34am   12,653 views  53 comments

by windsurfer   ➕follow (0)   💰tip   ignore  

I liked one of the houses in Half Moon Bay that I saw in MLS, contacted an agent (I will not disclose the agency name) and finally decided to make an offer.

The first thing she did was to make me sign a company-required contract (this is NOT a buyer's contract)to represent me just for this "particular" house. As the time went on, I had questions on financial issues such as loan contingencies, closing costs etc. since I was new in this game and would need a loan to finance this property. At the end, she probably must have been tired of my questioning and she suggested that I should look for a newer and cheaper property in a different area and "fired" me in her reply email. Thus, I went to another agent for representation. When the agents talked, the old one told the new one very unpleasant about me, which I would not repeat here. She also said that she would not release me from my contract for this property. Now, as a novice I am stuck with an agent that would not represent me fairly in short sale proceedings if I go back to her, and I cannot work with another agent to buy this house, because I have signed a document with company header.

My questions are as follows:
(1) What should you do if this is a property that you want to buy? What method do you follow to bypass a contract like this?
(2) If this property goes from short sale to foreclosure, would this contract still be valid?

Unfortunately, there are really no true real estate laws to protect the buyer in a scenerio like this.

However, some of you might have had a lot more exposure in real estate than I do and may suggest a potential way out of this. Please voice your opinion; because the same may happen to another novice :-)

Many thanks.

#housing

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41   omgbacon   2011 Jul 6, 6:35am  

I lived in Santa Cruz from around 2000 to 2007 while I was working in Sunnyvale. At first the 45 minute (I went off hours) commute each way didn't bother me. Living in Santa Cruz was also very nice at first and relaxing. I thought that living in a vacation destination would be fun; my friends would come to me and I'd already be where everyone wanted to go.

And then my friends never wanted to put up with vacation traffic so I'd drive up to the Bay Area to visit them, the 45 minute commute got really really old, and I absolutely hated how whenever I had free time to enjoy Santa Cruz it was generally overrun by tourists and what should have been a 10 minute drive across town would turn into a 45 minute drive.

And then I moved to downtown SJ where I can walk to one office location, take Caltrain to the other, and I'm much much happier with the situation.

If all your friends are out in HBM it sounds like it could be a good move. On top of that 92 isn't nearly as bad as 17 so the commute will be better.

But after living in Santa Cruz I decided I'm never living in a vacation destination again. No way. I hate dealing with the tourists.

42   corntrollio   2011 Jul 6, 8:27am  

omgbacon says

On top of that 92 isn't nearly as bad as 17 so the commute will be better.

As long as Devil's Slide doesn't wash out. Of course, the new tunnel/bridge project should help with that. Also, on weekends during pumpkin season, you better not leave town during any daytime hours, because you won't be able to get back any time soon.

As for the substantive question, she can't practically speaking "fire" you and still claim to be your exclusive agent -- she can't have her cake and eat it too. She's breaching the contract.

I'd love to know who this is, so I never have to deal with her. You should talk to the broker who should be supervising her (if she's not the broker) first to try to work this out. If explaining the inanity of this situation and the fact that she is breaching doesn't work, report her to the DRE.

43   junkmail   2011 Jul 6, 8:40am  

I'd watch that long commute guys...

44   Zoas   2011 Jul 6, 8:45am  

You could handle this the nice way, then escalate from there. Most agents just want to make a buck with the least amount of hassle. So talk to her, then to her broker. If agent has put a lot of effort in on your behalf, ask if she'll accept a referral fee from another agent's commission. Ask the broker if another agent in the same office can handle the transaction so they still make money.

Those are the nice ways. Or you can suggest to the agent and broker that you think it would be in your interest to have the DRE review the "contract" you signed. Most agents want nothing to do with anything that will attract the DREs attention. That is the not so nice way, but don't make it your first course of action. Nobody likes threats.

I can't quite reconcile how an agent can fulfill her judiciary duty and "fire" you at the same time. Too much information is missing here. Without seeing the contract it's impossible to know what all your options are.

45   corntrollio   2011 Jul 6, 9:03am  

Zoas says

I can't quite reconcile how an agent can fulfill her judiciary duty

I think you meant to say "fiduciary duty." However, a realtorused house salesmen does not have a true fiduciary duty like certain other professionals do. That's why things like dual agency are allowed.

46   windsurfer   2011 Jul 6, 9:18am  

DRE: Dept. of Real estate?

47   corntrollio   2011 Jul 6, 9:21am  

windsurfer says

DRE: Dept. of Real estate?

Yes. http://www.dre.ca.gov/

48   B.A.C.A.H.   2011 Jul 6, 10:37am  

windsurfer says

I have done this commute several times in the same week just to see how it feels. It takes 45min each way. I can adjust my work hours out of rush hour traffic. It is not all that bad

surfer,
why haven't you been renting down there for a year or longer to know what its really like, different times of year, to live there and also commute from there? Learn things like schools and the meth-heads, etc.
A 40-mile along either side of the bay is doable, I know folks who did it for years and years and years: Caltrain, Capitols, buses, and carpooling, all are options. One person I know had to go to work with a cast on his leg for awhile; his carpool partners filled in during those months that he could not drive. HMB is not exactly a huge pool of carpoolers to San Jose. You gonna count on having the stars aligned perfectly, including the mechanical condition of your vehicle, for that commute? It will be a grind. I used to have a boss who lived in that area, it was groovy for him for the first year or so till his kid came along, then it was a hassle and a grind. He had to sell at a loss to relocate back to "The Valley".
I'd say, rent there for at least a year before forming an opinion that the commute is manageable.

49   B.A.C.A.H.   2011 Jul 6, 10:38am  

windsurfer says

company-required contracts should not be included in the buying process. You can miss fine print very easily unless you hire a lawyer

Then hire one. Less aggravation than a Realtor®. Who said you hafta have a Realtor® represent you anyway? If the seller wants to sell, they're gonna sell it to you whether your agent is Realtor® or is a lawyer. Use a lawyer.

50   JG1   2011 Jul 6, 11:03am  

windsurfer says

I meant company-required contracts should not be included in the buying process. You can miss fine print very easily unless you hire a lawyer. I don't have any problems with state-mandated contracts; they go step by step into the buying process and protect both the buyer and the seller.

The company may "require" them but you aren't required to agree to them. And if you don't understand the contracts, or contract law, why don't you hire a real estate lawyer to assist you with this process?

So there is no need for a law to protect you from yourself in this regard.

Also, someone above said if it goes REO, the contract will be invalid - hard to say that without seeing it, so who knows - maybe back to that lawyer option. Of course, you can always ask the Realtor to complete her apology by voiding / ripping up the contract. And as stated by another poster, it must expire at some point...? See lawyer again if you can't decipher when that is.

51   windsurfer   2011 Jul 7, 3:52am  

"Windsurfer: I have lived in El Granada since 1999 and worked in San Mateo and San Francisco. I have experienced the traffic on both HWY 92 and HWY 1. HWY 92 traffic seems better after 9am and HWY 1 is never a problem until you hit Pacifica at 8 am until 9am. If Devil's Slide goes, it is best to leave the house before 6 am or stay home until 11 am. Before moving here I lived in Hermosa Beach in Los Angeles and worked near Santa Monica, so I was used to a 45-60 minute commute. When I moved to EG my commute was reduced to 30-45 minutes and the driving experince was much nicer than L.A. Like a previous posting stated, I would recommend that you rent for a year to test how things work to be certain before purchasing. I love this area and the fresh cool nights (without an air conditioner) of easy sleeping are much better than the stagnant heat of San Jose during summer nights. The commute is a drag especially if you do not get a chance to enjoy the mornings or the late afternoons. I always like coming home early to enjoy a sunny weekday when there aren't any "tourists" (bay area residents escaping the heat). From my experince since 1999, I can certainly say that the Half Moon Bay area just keeps getting better and better. Slowly, but surely. The community is very active in making things better here."

This sums to be the best advice I have gotten so far in terms of commute! I have a lot of junk and extra baggage, so I honestly cannot move from one place to another that easily. That is why I tried for 1 week to see how it feels to commute. My job allows me to adjust my hours; besides I would commute 3 times a week not all 5 days. What scares me the most is the "wet" cold that penetrates to your bones as one of you stated in a previous post.
In return, you get a great place to live; I would think it would be a much better neighborhood than san jose overall with less congestion, traffic, dirt and heat. I am still going back and forth. Trust me, it is a very difficult decision :-)

52   windsurfer   2011 Jul 7, 4:48pm  

"That's really bad you should have not go on that agency in the first place , It's would be good if you do research first regarding on the agency and ask some friends about it especially when you are buying a house. Too bad for you, you already signed the contract."

It was only for that house. There will be more houses. At this point, I am not sorry anymore. May be it was meant to be this way so that I would find a better one in the future :-)
Thanks, anyways.

53   EG Resident   2011 Jul 8, 6:36am  

It is true about a "wet cold"; however, it also depends on your life style. If you like to bask out in the sun and heat, then no Half Moon Bay is not for you - but you will get maybe 10-20 days a year where you can do this. On the otherhand, if you like to surf (with a wetsuit) or run. Then the weather is great. You don't get overheated and I run there all of the time. Also keep in mind that the coast has microclimates. It is rumored that El Granada actually gets a little bit more sun than Moss Beach or Half Moon Bay. Pacifica gets a lot of sun in the back of Linda Mar where as the closer you are to the beach it is more fog. Again, I recommend renting for a year to see how you acclimate to the weather.

As far as agents go, this one sounds like a screwball. Keep your eye out, there are some really nice houses out here at good prices right now. Don't limit yourself to forclosures or REOs - I am seeing bargains on houses that the sellers reduced the price, understanding the market conditions, just to accelerate the sale so they can get on with their lives without dragging on keeping up two houses. I have seen prices come down by about 25% since 2007 when prices peaked. Look at the neighborhood, not just the house.

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