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 small claims court

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Date: October 18, 2007, Number of Replies: 7


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Anyone had to take a client to small claims court for commission?  I have a client (w/a seller rep agreement) that purchased two homes using another agent.  We had the representation talk when they signed the contract and again when they purchased the first home for their daughter.  Still they chose to use another agent for the second purchase while still communicating with me and obviously not being honest. It's because of their total disregard for our contract (and with consent of my broker) I've decided to take them to small claims court.  I wouldn't be taking them to court if we hadn't had multiple discussions about representation. She just got the demand letter today and made a call to my broker.  I guess I'm looking for any feedback, advice,etc from someone that's been through this.  The commission due is approximately $8K.  If I take them to court I'll be going for $5K and if they negotiated with me prior to court I would be willing to take less. I'm not out to "get" someone.  They live in Ca and are moving to Idaho shortly.

Thanks in advance!

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Tom Hathaway Licensed Real Estate Broker,  TN

Date: October 19, 2007

<<Anyone had to take a client to small claims court for commission?  I have a client (w/a seller rep agreement) that purchased two homes using another agent>>
 
And just what make you believe you are entitled to represent your seller clients as buyers on future properties?   Are you confused about the difference between a "seller's agreement" and a "buyer agency agreement"?
 
It is possible I suppose that you might have had something in your listing agreement that guaranteed you would be involved in the purchase of any future purchases or something, but if so I would think that such an agreement would only be enforceable if you sold the home for the terms that the homes was listed for.  Anything less would seem to likely voided the agreement.  For instance, if such an agreement said "if you (the listing agent) do xxx in selling my property, I (the seller) will do XXX for you.   But if the listing agent only does X, or XX, then the seller does not have to perform.
 
Tom Hathaway 
The Buyer's Agent,
Germantown, TN
 
Tom Hathaway



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Ronny Geenen Licensed Real Estate Agent,  Glendora,  CA

Date: October 19, 2007

 
If I take them to court I'll be going for $5K
 
Small claim court is $7500 max.
 
Ronny Geenen
Southland Properties
211 N Glendora Ave
Glendora, CA 91741
Http://CaFoothillsRealEstate.com
Mailto:Ronny@RonnyGeenen.com
Cell: 626-278-2205
 
"The degree of civil liberty is not measured by the way the state treats millions of those who agree with it, but rather how it treats a dozen who don't". by Ludvík Vaculík
 
If you received this email in error, please contact the sender via e-mail or at 626-914-6999 and destroy all copies of this message and any attachments. Thank you.
 
 
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Date: October 19, 2007

Okay my error...I had a buyer's rep agreement with them. Sorry I also had a seller compensation agreement with the builder they were originally using.
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Melina Tomson Licensed Real Estate Broker,  OR

Date: October 20, 2007

In Oregon, our max is $5,000 but your claim would not qualify.  Out here you can't just "drop" your damages amount to get under the $5,000 claim, so you would not qualify.  Also out here, your broker would have to be the one to file the claim since the money is due to the broker and not you.

So to get this straight, they signed a buyer agreement and purchased one house with you for their daughter, but your buyer agency agreement spelled out that they were agreeing to purchase two properties from you?  Or did they purchase their house for the daughter from the other agent?  If that's the case, why did you continue to work with them at that point.  I'm a little confused by your scenario and exactly what is agreed to and what transpired.

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

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Vickie Gutierrez Licensed Real Estate Broker,  Dixon,  IL

Date: October 21, 2007

Michelle,

It is a little confusing as to what exactly happened.  They were still in contact with you for what?  Is your broker involved in the claim?  It seems to me he/she would have to be.

Vickie Gutierrez, GRI

Century 21 Alliance

224 N. Galena

Dixon,IL 61021

Ofc. 815/288-4444

Cell 815/973-4444

 



 

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Paul Silver,  Portsmouth,  RI

Date: October 24, 2007

<<Anyone had to take a client to small claims court for commission? I have
a client (w/a seller rep agreement) that purchased two homes using another
agent>>

And just what make you believe you are entitled to represent your seller
clients as buyers on future properties? Are you confused about the
difference between a "seller's agreement" and a "buyer agency agreement"?

It is possible I suppose that you might have had something in your listing
agreement that guaranteed you would be involved in the purchase of any
future purchases or something, but if so I would think that such an
agreement would only be enforceable if you sold the home for the terms that
the homes was listed for. Anything less would seem to likely voided the
agreement. For instance, if such an agreement said "if you (the listing
agent) do xxx in selling my property, I (the seller) will do XXX for you.
But if the listing agent only does X, or XX, then the seller does not have
to perform.

Tom Hathaway

---

Tom is correct here, and then some... unless there were enforceable clauses
in the seller agreement, there is nothing that obliges your seller to buy
other property through you... Also, if you do actually have a case, you
should look into the limits on monetary amounts allowed in small claims
court in yoru jurisdiction... most real estate commissions would exceed the
limits in small claims courts I am familiar with, assuming an average value
for the properties purchased...

Paul Silver
Focus Professionals, Inc.

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Dave Johnston Licensed Real Estate Broker,  Richmond,  VA

Date: December 8, 2007

<<Anyone had to take a client to small claims court for commission? I have
a client (w/a seller rep agreement) that purchased two homes using another
agent>>

__________________________________________________________________________

Yes, but it was for a Buyer who backed out of a sale. I got a judgment for
my full share of the commission and placed a lean against property that he
already owned.

Dave Johnston GRI, e-PRO, CRB, ABR, CPC
"The Old House Man"R
Principal Broker
oldhouseman@verizon.net
(804) 343-7123
www.AntiqueProperties.com

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