RealTown's RealTalk

Has anyone else had dealings recently with Prestige Builders Partners? They are a company based here in Florida and i recently contracted one of their condo conversion units to a client. After several very frustrating weeks of dealing with their prefered lender who was reluctant to return phone calls to my client and communicate the progress of her loan to anyone we had to extend the closing date. Does anyone else find it frustrating to put your buyers financing in to the hands of a mortgage broker who we have never dealt with only because the developers will only pay incentives to do so? After 2 extensions to the contract we were ready to close only to find out we couldnt because Prestige was in the middle of a refinace on this property and the bank would not allow any closings, 2 more extensions later the sellers suggested a 3rd extension and my buyer decided not to accept. Three weeks of working with my buyer, and 6 weeks of dealing with this nonsense later my buyer decides she is going to rent because the market scares her right now. Should I feel partially responsible for this or am I right to blame and be very upset with Prestige Builder Partners? When I contacted teh VP of sales for Prestige and ask for compensation because I brought a qualified ready willing and able buyer to them only to have the closing fall through at their fault they told me too bad. Funny how Realtors are their best friends until we expect compensation for our services. If anyone has a buyer I would stear clear of Prestige Builder Partners communities, the one in particular I dealt with was in Altamonte Springs and is named Crescent Place.

Sean Kelley

Kelley real Estate Group

sean@kreghomes.com

I would file a complete with the local board and seek compensation. The fact that the property was in the middle of a refinance, is a material fact, in my opinion and should have been disclosed. 

If there was not listing agent involved, I would look at your agreement for compensation with the builder and take them to court (I assume a condo commission would be low enough for small claims, ours is $5,000 limit out here).  File my $80, and see what happens.

Failing to disclose the refinance and the ability of the property to be closed, could be construed as misrepresentation.  I'd be all over that...

Melina Tomson, MS
ABR, e-PRO
melina@tomsonburnham.com
www.TomsonBurnham.com
ph: 503-371-6515
fax: 503-588-1628

Sean Kelley

Kelley real Estate Group

sean@kreghomes.com

Jim Bourgoin responds and asks:

1. What did your buyer agent agreement say about compensation?
2. How did it address bonuses, incentives or what I would call a BRIBE?
3. Did your buyer know that they would have to pay extra to cover what I would call an excessive commission?
4. How much from the original builders price did you save your client?

Putting Kelly's interests above that of his client, if in fact, the buyer was a client is an issue Kelly has to come to terms with.

Then Robert King says: "We are in a market that only we can fix.  Why do I say that, because Realtors are suppose to drive the market up NOT DOWN."

Jim Bourgoin responds:

1. WHAT KIND OF STATEMENT IS THAT?
2. Do you Robert King speak for every Realtor?
3. Where in the Code of Ethics does it state Realtors are here to drive the market up?

I can honestly and ethically say that the last 3-4 years the market was being driven by speculators, investors, new under-educated Realtor members and some seasoned Realtor members setting hyper-inflated values to properties that do not now support that position. 3-4 years ago inventory of active properties were at record lows, buyers did not have the choices that they know have. The Realtor population was close to or around the 600,000 mark. Over this period of time the Realtor membership grew to a record 1.3 million members. Since the NAR is really and truely listing centric, it is no wonder that inventory increased along with the hyper-inflated values that everyone witnessed.

 Jim Bourgoin, CEBA, ABR, ABRM

Well, inquiring minds would love to hear the answers do the questions posted in my previous post.

How do other RTers handle the incentives that are being advertised within their respective market place?

Are you finding yourself representing the buyer without a written buyer representation agreement?

Have any Rters seen one of their previous transactions that closed within the last year go into foreclosure? How do you respond to the owners issues when the property has dimenished in value by the amount of the bonus or incentive or worse?

Jim,

I always tell my clients when I am being offered a more that common (3%) out here, as I think it tells my buyers something about the desperation of the sellers.  I also tell them if they are offering a really low commission because we could get a good deal on those as well.  I've never heard of anyone offering a 12% commission so that is a new one to me.  I would absolutely tell my client about such a huge commission. 

I haven't had any of my clients that I represented as a buyer agent go into foreclosure.  I spend a lot of time talking with my buyers prior to searching about making  a solid investment and not stretching too far.  I was always appalled at what lenders would qualify them for.

Robert,

I do think a refinance is material to the contract because it impacts the sellers ability to close on the date agreed upon.  Just like if a property was in bankruptcy, foreclosure, or short sale and required third party approval.  That information is material to the contract and must be disclosed.  Material facts are not just about defects but anything that would impact the agreed upon terms of the contract. 

If it were a MF it would be KNOWN or at least found out about prior to turning the Client over to the BAD PEOPLE! 

I am not sure how you would find out about a builder being in the middle of a refinance, since the mortgage would not be recorded at the county until after they signed loan docs.  Maybe you have the missing decoder rings?

 Melina Tomson, MS
ABR, e-PRO
melina@tomsonburnham.com
www.TomsonBurnham.com
ph: 503-371-6515
fax: 503-588-1628

Sean Kelley

Kelley real Estate Group

sean@kreghomes.com