Q: I just closed on a house last week and my RealtorA Realtor is a designation given to a real estate agent or broker who is a member of the National Association of Realtors. promised me to give me her 1.5 percent share of the commission as she was getting a total commission of 3 percent. The house price is $315,000.
Once I closed the house, she left and is now not answering any of my callsCalls occur when a company orders preferred stock or bond holders to turn in their stock or bonds for money.. I have nothing in writing about this 1.5 percent commission cash back offer.
I felt cheated and betrayed. I had the same proposal from another Realtor which was in writing on her web site. When I showed my agentAn Agent is an individual who acts on behalf of a consumer. A real estate agent represents a buyer or a seller in the purchase or sale of a home. Licensed by the state, a real estate agent must work for a broker or a brokerage firm. An insurance agent helps a consumer purchase an insurance policy. Insurance agents are also licensed by the state. that she said she would match it, but now she wonÃ¢â‚¬â„¢t even call me back.
When I called her team leader, I was told that there must be some misunderstanding, as my agent could not give me 1.5 percent since she doesnÃ¢â‚¬â„¢t earn that much. What can I do?
A: I think you got hoodwinked into hiring this real estateReal Estate is land and anything permanently attached to it, such as buildings and improvements. agentA Real Estate Agent is an individual licensed by the state, who acts on behalf of the seller or buyer. For his or her services, the agent receives a commission, which is usually expressed as a percentage of the sales price of a home and is split with his or her real estate firm. A real estate agent must either be a real estate broker or work for one. under false pretenses. In some circumstances, this might even be known as fraud.
Unfortunately, you did not have anything in writing. But you can open your mouth and file a few complaints.
You can file a complaint against the real estate agent and the firm which employs her with your state Attorney General’s office, as well as with the state office or commission that regulates real estate agents. If the agent is a Realtor (a member of the National Association of Realtors in addition to being licensed by the state), you should file an ethics complaint with the National Association of Realtors, based in Chicago. DonÃ¢â‚¬â„¢t forget to file a complaint with the Better Business Bureau (www.bbbonline.org).
By the way, you should copy the Ã¢â‚¬Å“team leader,Ã¢â‚¬ï¿½ the managing broker of the firm, and the firmÃ¢â‚¬â„¢s owner on all of your correspondence.
Speaking of the Ã¢â‚¬Å“team leader,Ã¢â‚¬ï¿½ IÃ¢â‚¬â„¢m not sure you got the best answer from him or her. Here’s how a real estate commission is generally split: If the total commission is 6 percent, the seller and buyer’s agents each get 3 percent. Then, each real estate company then splits the commission further with the agent, typically with the agent receiving at least half, or 1.5 percent. Obviously, if the total commission is less than 6 percent, and the splits are the same, then the buyerÃ¢â‚¬â„¢s agent would receive less than 1.5 percent.
What you may not know is that some real estate companies charge the agent for office space, telephone services, and other office necessities, but then allow the agent to negotiate whatever commission he or she wants. In this case, it could be quite possible that the agent would have received almost all of the commission that would be coming to her company, and could cut a better deal with you. If her company was to receive 3 percent, she would keep most of it with her company getting the balance.
You might want to contact the managing broker of the firm (unless this is the Ã¢â‚¬Å“team leaderÃ¢â‚¬ï¿½) and tell him or her that his agents are making deals they cannot live up to just to sign clients. It’s not good business practice, and it could get the firm into a lot of trouble.
Without anything in writing, you probably don’t have many legal options, if any. But you might want to talk to a real estate attorneyA Real Estate Attorney is an attorney who specializes in the purchase and sale of real estate. about any legal options you have
Dec. 5, 2005.