I have a new listing with a signed Listing Agreement with a party relocating to another town. I am working as a Transaction Broker as it's a flat fee listing. About 10 days into the listing I received an email to lower the price. The next afternoon I received a call from a Realtor that stated she was my clients Realtor and that I needed to remove my listing in MLS ASAP. They were going to use the home for an HGTV show called "My First Sale" and she needed to input her listing right away. I told her that this was the first that I'd heard of it. Since I'd been out of the office with a client I had not seen the email from the Seller that stated to remove the listing from MLS as they had hired a Realtor. I had verbally told them that I would terminate the listing with written communication but did not include it in the contract. This is not an issue but rather for informational purposes. Since I had appointments all afternoon It wasn't until 5:30 p.m. before I had time to prepare the paperwork to terminate the Listing Agreement. It was sent via DocuSign at 5:55:28 p.m. to the Seller for the digital signature. The next day I tried to check the web based email server that I use for DocuSogn every hour for the doc as it needed to be forwarded onto the husband for his signature. That morning I received an email from the "new Realtor" she wrote
“Just wanted to remind you that I am really anxious to get the Wallums’ home listed on the MLS, and I can’t do that until you remove your active listing.
We are feeling a big time crunch here.
I sure would appreciate it!”
I responded that I had yet to receive the termination addendum signed. I also inform her that she is out of line and needs to wait until we’re finished prior to proceeding with her listing. She then ends another email which she says “So sorry, did not mean to step on any toes. I was under the impression from speaking with the Wallums that no paperwork had been signed by them, which I thought was strange at the time. I should have been more clear with them.Thanks for clearing up the situation. Obviously I wish to comply with all appropriate contractual agreements.”
Now I'm starting to get annoyed. Once again I quickly check the email to see if I've received the signed doc but it's not there. Since I've got multiple clients that are requiring a lot my time at this point I move onto something else. Then that afternoon I receive a call from the "Realtor she inquired why I hadn't taken the listing off of MLS as yet. I told her that I hadn't received the signed paperwork as yet but once I receive it the listing will be removed At this point I'm pretty mad. I left a message for the Seller but didn’t hear anything back from her. Now I’m tired of being harassed and bullied by the other Realtor. The next day there was only communication from the Realtor via the phone and email. I had actually decided that the Seller was obviously not a part of this as she had not signed and sent the docs. Then the Realtor informed me that she had call MLS and asked them to remove my listing as I was no longer the listor. She informed that she was and I was refusing to remove it from MLS. She also told me that she has a signed Listing Agreement with the Seller. I informed her that I also have a signed Listing Agreement with the Seller. She repeated that they said they didn’t have any paperwork with me at all. I also informed her that her actions were unethical and illegal that the Sellers couldn't be party to Listing Agreements at one time. Now I'm absolutely fuming. That afternoon the Seller sends an email and wanted to know why we haven't removed the listing from MLS. When I stated that she hadn't signed the docs she stated that I didn't send it.
Anyway after angry emails and voicemails on all sides of this issue I finally sent an email explaining repetitively that all of the documents were sent digitally and were documented with time/date stamps. Each and every one of them could be tracked including the termination doc that I had sent. Interesting that later in the day magically she found it signed it and sent it back with a note requesting that I forward it on to her husband. I was showing homes to a client at that time and didn’t receive it until after I arrived home. When I finished showing homes I drove past the property and saw that the Realtor had placed her sign in front of the home. I took multiple pictures of it and came home. My office phone and email was full of nasty messages. Basically threatening me and then finally telling me that the listing was terminated and that they were proceeding without the docs. Of course finally the end was that the doc appeared and the Seller sent it. In the email that the Realtor sent she stated “They felt they had no type of contract with you what so ever, and that was what they expressed to me in our first contact. It was only much later that they understood that they had in fact signed via computer an agreement to list but not represent.” The Sellers are a branch manager of Wells Fargo Bank and an insurance agent with State Farm. It seems prudent to believe that they understood what they were signing. Now, of course, they are saying that they are going to follow up on me as I had stated that I was going to report this to the board of Realtors and the Colorado Real Estate Commission. At this time I have prepared the doc to be sent to the husband. Although they could have signed the one they have and faxed it back as I have already signed it. Then I plan to contact the Real Estate Commission tomorrow, the board of Realtors and also High Noon Entertainment ( HGTV) to report all of this behavior and the dual Listing AgreementsI understand that this couple wanted their home to be on HGTV. Even though we prefer to work towards achieving a full service listing with our flat fee listing clients we sent the termination papers in a timely manner to proceed with the termination. It was the Realtor that turned this into high drama. It also appears that apparently my clients didn’t want to sign the termination docs for me to have it on file. The only thing that I can think of is that the date would prove that they signed a new Listing Agreement prior to terminating the one with me. I’m assuming that a Listing Agreement is a prerequisite with HGTV.
. I'd like to know what you think and should I go ahead and send the husband the doc to sign digitally or wait. I’ve never had an experience such as this one with another Realtor. I have no idea what to do but feel that it should absolutely be followed up. Obviously she has no idea how to practice real estate and what she’s doing or for that matter what a Transaction Broker is and the legalities along with it. She seems to think our contract is not good.
I'm wowed that you even let them get off the hook and didn't get defensive. That realtor certainly sounds like didn't know what she was doing. You obviously cannot have 2 singed active contracts and she should've known of it. I personally do believe it should be reported just so that she knows what the rules and regulations are.
I look forward to see what others have to say.
Warm wishes
I would check with the legal department of your state association for the proper steps in handling this problem. I have noticed that more and more people have been saying that they didn't understand what they were signing or didn't understand that it was a binding legal contract.
We had seller's sign another listing agreement with another broker without telling us that they wanted to terminate. The seller would not answer our communications, so we had no verification that they indeed wanted to change brokers.
Our broker had requested that we put a monetary amount in the termination fee portion of our listing contracts. She felt that they would understand it more when they were told up front that there was a charge to terminate.
In the above case, it was a good decision. Both sellers had initialed the amount in the termination line, so when they finally answered us and said that they didn't understand and were not aware that there was a termination fee, we produced the documentation. We required that they come pay the fee before we would terminate the listing.
In this case, a lot of time had been spent on helping them to stage their home, making brochures and virtual tours. It did help to offset some of the costs that had been incurred.
Unbelievable and a blatant violation of Article 16 of our COE
"Article 16
REALTORS® shall not engage in any practice or take any action inconsistent with exclusive representation or exclusive brokerage relationship agreements that other REALTORS® have with clients. (Amended 1/04)
file a grievance and help her understand how business is done properly.
Amazing. I would venture to say that she has a MUCH higher duty than even the clients themselves. She saw your sign out there. Even if the clients said they didn't sign anything, she should know better. And even if she thought that was plausible. She owed you a phone call. This is uncalled for, and really should be reported.
Defensive...oh yes. After she called to tell me that she couldn't get MLS to remove our listing I was furious. I sent her an email and told her she needed to get some classes because she has no clue what's going on. Then I told her selling real estate isn't the same as selling jeans in the mall. I wish I hadn't lowered myself but telling someone that nicely that they're stupid isn't unethical. We are a husband and wife real estate team and have been absolutely shocked about what's blatantly going on. Tomorrow we're contacting the legal dept of our Board of Realtors.
An early termination fee is a great tip! We will definately put that in all of our Listing Agreements from here on out. It's time that we quit selling ourselves short and actually get paid for our work.
Unfortunately the Sellers understood the Listing Agreement. It seems that it's the Realtor that doesn't understand it or the difference between a Sellers Agency or a Transaction Broker. I do have a problem with a branch manager of Wells Fargo signing 2 seperate Exclusive Right to Sell Listing Contracts with different Brokers. I bank at Wells Fargo.
It's dificult to file a grievance against another Realtor. We've bounced it back and forth and decided it's actually our duty. This young lady obviously doesn't know anything. She's a detriment to our industry and another Realtor that gives the rest of us honest hard working folks a bad name. She's good I'll give her that. She turned us into the bad guys and we sent the termination docs within hours of the request. She was having a ball spinning the drama by calling and emailing us all day. Keep it coming because not only does it justify our claim it will also prove she doesn't know what she's doing.
They are all lying. I don't know of any Broker that wouldn't do their due diligence. Interesting that she never asked us for the Listing Agreement. We didn't send it to her because she wasn't supposed to even be a part of the equation. Anyway every call, voicemail and email we just went further and further into shock. We couldn't believe it was happening.
My due diligence... if I were an agent called in to list a property that seemed to be already listed (sign in yard would be clue #1), is that I would insist to see the cancellation agreement in writing. My firm even has a form asking clients if they've previously entered into another agreement with another brokerage. It asks for date of expiration or cancellation and we ask to see that copy if in doubt at all.
I took on a client once that ended up having to pay the other brokerage their fee before they'd let her off the hook. Maybe you're letting these people (the clients themselves) off the hook too easily. ( I didn't list until I saw the cancellation in writing) Personally if I ever had someone who wanted to cancel I'd let them go, but these are unique circumstances to be sure.
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