Hi Catherine,  Sounds like interfereence with a contract for a builder to induce the buyer to dump the agent as a condition of the sale.  Get a very good realestate attorney.

Hi Catherine,

Sorry to say it happens all too often. For me bottom line it depends on their contract. Enforceable or not? Any exclusions? That sort of thing.  Btw, Pulte could care less, they just want to sell homes.

Many builders do these things all of the time.  We ALL have stories like this.  It sort of makes me laugh, I bet the Pulte sales person would have something to say if they worked all week and then the builder said, never mind, we don't feel like you deserve to be paid?  I think the broker should go after that BBA for sure.

I would get the real estate commission involved and make sure I got my commission paid on the sale from Pulte. I would not put up with this. When other put up with it and move on it hurts all of us. Someone needs to stand up and stop this type of business.

It all depends on how the BRA reads.  An agreement between buyer and broker that states someone else is obligated to pay for anything is not only absurd, but highly unlikely to be enforceable.

What the builder did was wrong.  What the agent did was not protect their commission.  What the broker needs to do is train.

Sorry to hear this..It happens too often...There must be something we can do to get the commission due to us...I say this because this is the second time it happened to me this month!!

                                                                                          Lorrie727

I had a builder rep try to do the same thing. Shame on him. The buyers were VERY good friends and told him to stuff it.

Hmmm...aren't they offering their homes/listings on the MLS advertising they pay a cooperating agent?

How TACKY and unprofessional of them. So sorry... Legal advice needed.

Certainly not ethical but depending on the contract probably not illegal.  But like my mom always said..."Just because you CAN, doesn't mean you SHOULD"  This is happening all too often in today's market.  Desperation stinks for everybody and usually ends up biting someone's behind.  Just don't let it be yours!

All the Best!

Kathy Fisher

All the more reason to have a buyer broker agreement signed before you take any buyer anywhere.

Builders must be getting desperate. In our area, our Buyer's Agency states that the BUYER will be responsible for the commission if the seller doesn't pay.

I would say here in GA the Buyers agreement would rule and the Builder / Builders agent would have to pay the published commission at the least..

If strong arm was required the agent / Broker could contact the buyer and remind them "they / the buyer" is reasonable to pay the agreed commission .. let Mr and Mrs Buyer fight the fight with the builder.

Definately time to talk to the broker and get him talking to Pulte

It is sad to hear that this is so common, not being an agent myself I didn't realize how often it happened. They have a buyers agreement but it states that the seller will pay the commission. They placed several calls into Pulte prior to the buyers arriving and they have record of that. The funny thing is Pulte made a statement to them that they welcome agents and even the statement that they wouldn't be here if agents didn't bring buyers....so why do this? I can't do anything but I hope posting this someone will think twice before presenting a buyer to a builder...let alone Pulte Homes.

I also believe that agents and lenders have been a little too trusting, too nice...we are scared to protect our time and money. We are afraid that if we ask for something upfront that buyers will go somewhere else. I really think we need to change our standards as a whole. Thanks for your comments! I will send this to them...I have been trying to get them on the site!

One more question....they are thinking of waiting for the deal to close and go sue either the buyer or seller. Are they smart to wait until after is closes or go for it before it closes?

Thanks again! Catherine

I wouldn't wait for it to close! Once they have a signed contract between buyer and seller, it's just as good as closed. Legally that is a binding agreement and that agreement just broke the first one between the buyer and the buyer's agent. So, no, you don't have to wait till it closes. I would contact the buyer and remind him/her to what they signed and what that obligates them to. A lot of people are ignorant about the process and don't understand the consecuences. If they know what they're up against, you might be able to work something out without having to go to court.

Here, with a signed buyer agency agreement, in the majority of cases, it's the seller who pays commission, UNLESS the buyer ditches the agent. In that case, it is the buyer who must pay.  So, depending on how the buyer agency agreement is worded in your area, if the buyers are responsible for paying, then I would go after them NOW.  Don't wait until closing. 

Two issues. Normally a buyer agency agreement states the buyer is responsible for the commission and the buyer agent will attempt to have the seller pay the commission. That way if the buyer caves to the unethical offer of a builder they may still have to pay their agent. A year or so in Maryland a law was passed that greatly cut this behavior. Now all builder sales reps have to be licensed agents. This means the builders here now have to obey the same laws we do.

Catherine:  That is some of the most underhanded crock of s**t I've heard in a while.  You should march down to their office and demand your commission.  Because who from your office is going to show those homes if that is how they treat agents.  UGH!!!

Wow what a way to have a agent stop showing there property at all. They stink. I would go after them  with everything I had.. Good luck

That's a rather backhanded approach by the builder.  I imagine if I had that experience I wouldn't show any more of their homes.  If I had brought the buyer to Puhlte I would expect get paid... If I had a "buyer's agreement" I would think I would have recourse to pursue getting my commission on that deal.

The above comment is mine.  For some reason AR keeps loging me off!

Sharon & Jon, I know what your saying, I told my agents that they should stand out front and picket to any new agents coming in that they don't pay. Heck I would send a flyer to every agent in the area that they forced them out. If anything it will make it hard for them to get buyers in there. That is the man reason why I posted this, I want it to be known and think twice before showing a Pulte home.

Catherine,

You might suggest to your Realtor-friend to give Oliver Frascona a call.  If he agrees that she has a case, I suspect that a simple letter from him to Pulte Homes would probably resolve the issue. 

In South Carolina, Builders are under the same licensing commission as real estate agents, and had this happened to me, I'd try to file a complaint!

Catherine

First question would be did the real estate professional register the customer with the builder when they showed the home? Was it in writing? If the customer was registered the builder should paid the professional fee.

Lou Ludwig

Good luck and success

For additional information go to www.LouLudwig.Com