Using multiple selling agencies

[Mikamarii]

Hello,

Just wondering if people who have sold DVC listed with multiple agencies. In going through the boards it seems people are very loyal to their agents so it only make sense to list with more than one agency if that exposes to more buyers.

In talking with one agency they said a standard real estate clause in Florida is that if a full price offer is presented then regardless, the commission is owed to the agency (I may not have that worded exactly right but that was the gist of it). So I guess the big risk is that it is possible to have full price offers submitted to each agency the same day and have to pay double the commission!?

Thoughts?

 

[dvcsince93]

I have sold three contracts- and listed one contract, that i wanted to sell quickly, through multiple agents. I told both of them what I was doing. Neither of them mentioned anything about a commission being due for a full price offer- I think that is likely bs and, at the very least, it would need to be in the listing agreement so look at it carefully. The only thing that they both asked is that the price be consistent on both sites and that you let them know when you have a contract so they stop selling it. I had a couple of false starts- they both brought "buyers" that fell though, but in the end, it worked out.

My bigger problem was that the contracts I sold, were listed through different agents and the agents used different escrow agents- one of the agents forwarded me the proceeds the same day it closed, another wanted to hold the money for about 3 weeks until the points were actually transferred. Get the info on escrow before you sign any sales contract.

 

[Mikamarii]

That is great thanks. Our hands are tied with escrow as we have to pay the 15% FIRPTA tax. We would use a FIRPTA specialist to recuperate the money but that process takes a little longer so we don't expect all the money right away.

In speaking with one agency they stated that if a full or above asking price is offered there is no negotiation and the contract is deemed to be sold. However, I suppose nothing is 'sold' until contracts are actually signed. I always read the fine print which is why the info the one agency offered caught me by surprise as I hadn't seen that when researching different agencies. I haven't seen the actual contract yet though so as long as it is in there it is fair game.

 

[Dean]

Many do a non exclusive contract so you just need to make sure you list it that way with companies that do so and notify them immediately if you get a contract elsewhere. But some of the companies also comarket so it wouldn't do you any good to list with multiples companies that link up anyway.

 

[Frederic Civish]

Hello,

Just wondering if people who have sold DVC listed with multiple agencies. In going through the boards it seems people are very loyal to their agents so it only make sense to list with more than one agency if that exposes to more buyers.

In talking with one agency they said a standard real estate clause in Florida is that if a full price offer is presented then regardless, the commission is owed to the agency (I may not have that worded exactly right but that was the gist of it). So I guess the big risk is that it is possible to have full price offers submitted to each agency the same day and have to pay double the commission!?

Thoughts?

Yes, listing with more than one sales agent is risky. Most of them actually have an exclusivity clause in their contract, but even the ones that don't, if you get 2 or even 3 offers all at the same time, AND THIS HAS HAPPENED, then you will be paying the extra commission out of your pocket.

According to real estate law, the contract does not need to go through, for the salesman/broker to get paid. All they have to do is produce a buyer who is READY, WILLING AND ABLE to purchase, in order to get paid. Now, normally, you know that the buyer is Ready, Willing and Able, because they actually move forward on the sale, but if someone is doing that and another buyer shows up at the same time, with a different agent, then it's on you, baby.

 

[dvcsince93]

I'm not sure I agree with that- the DVC brokers I've spoken to-admitedly only 4- do not have exclusivity deals and my bet is that you can negotiate a non-exclusitivity deal with any DVC broker.

Also, I would have to see the law behind the ready, willing and able buyer scenerio. I have questions as to how it would work, since buyers are not on the hook until a contract is signed so it seems unlikely the seller is on the hook before then. Then, even if a buyer agrees to price, and signs the contract, they have a right to revoke the contract for a period of time. In such a case, no commission is paid so not sure how the seller would have to pay a commission where no contract even exists.

 

[Dean]

I'm not sure I agree with that- the DVC brokers I've spoken to-admitedly only 4- do not have exclusivity deals and my bet is that you can negotiate a non-exclusitivity deal with any DVC broker.

Also, I would have to see the law behind the ready, willing and able buyer scenerio. I have questions as to how it would work, since buyers are not on the hook until a contract is signed so it seems unlikely the seller is on the hook before then. Then, even if a buyer agrees to price, and signs the contract, they have a right to revoke the contract for a period of time. In such a case, no commission is paid so not sure how the seller would have to pay a commission where no contract even exists.

Some do, some don't. I do remember one report where it was a non exclusive listing but the broker claimed they had a buyer and wanted their commission. There may have been information we were not privy to but that's the reason I mentioned an early notification of pending contract if one does go this route.

 

[Frederic Civish]

Also, I would have to see the law behind the ready, willing and able buyer scenerio. I have questions as to how it would work, since buyers are not on the hook until a contract is signed so it seems unlikely the seller is on the hook before then.

It is true that this provision is often not enforced. The broker usually doesn't want to create ill will by seeming to treat their customers (the sellers) poorly. BUT, sometimes they do push it, especially if they have gone to a lot of trouble to put a property out there and pay for advertising and things like that. Also, their agents might feel that they have spent a long time with some potential buyers, so, if those buyers decide they will buy, the broker might want to get paid.

How do they demonstrate that a buyer was 'Ready, Willing and Able?' Usually by having a buyer who has signed the paperwork and put down a deposit, then they are usually considered to be Ready, Willing and Able, unless you can prove otherwise.

Here is something from a real estate website:

Ready, able and willing or ready, willing and able
(As defined and explained in Real Estate Defined)

An expression used to describe a prospective purchaser who is in a position to sign a binding contract; one who is prepared, legally capable and financially able to purchase a property. An agent or broker's commission may be made payable upon condition that he procures a purchaser who is 'ready, able and willing' to execute an unconditional contract on terms specified by the seller. In such an instance, as a rule, if the agent fulfils that condition, even if the seller refuses to conclude the sale or withdraws the property, he has earned his commission. Also, as a rule, if nothing is expressed to the contrary as to an agent's obligation, he is entitled to a commission when a purchaser has been procured who is 'ready, able and willing' to purchase the listed property on the seller's terms. The expression 'ready, able and willing' or 'ready, willing and able' has been adopted and thoroughly reviewed in English and American case law leading to almost identical interpretations

http://realestatedefined.com/html/Term_of_Month/Ready_Able_Willing.php

 

[dvcsince93]

It seems to be a specific condition that you can add to a listing agreement. So, it provides just another reason to read any listing agreement before signing with a broker.

Moreover , ithe validity of the condition seems to vary from state to state. For example the same website says:

However, in the US, in a few jurisdictions, the view has been taken that a person cannot be considered 'ready, willing and able' to complete until a binding and enforceable contract is signed, or even until the transaction is closed.

Finally, the law may even provide some protection for sellers in a situation such as this, particularly where the broker is aware of the use of two agents. In such a case, the seller can't give title to two different people.

In the US, it has been said that where the seller is unable to deliver a good title, and the broker is aware of the defect, the broker has acted in bad faith and is not entitled to a commission, even if the buyer is properly procured; although some jurisdictions accept that this rule does not apply if the defect can be cleared (28 ALR4th 1007: Real-Estate Broker's Commission).

As with all things, keep everyone in the loop and read the contract.

 

[Jason@dvcstore]

Hello,

Just wondering if people who have sold DVC listed with multiple agencies. In going through the boards it seems people are very loyal to their agents so it only make sense to list with more than one agency if that exposes to more buyers.

In talking with one agency they said a standard real estate clause in Florida is that if a full price offer is presented then regardless, the commission is owed to the agency (I may not have that worded exactly right but that was the gist of it). So I guess the big risk is that it is possible to have full price offers submitted to each agency the same day and have to pay double the commission!?

Thoughts?

The Timeshare Store, Inc.® and the other resale companies simply want you to let the other companies know when you have sold the property. For example, say you list with company A, company B and company C. If company C sells your property then immediately email company A and company B and tell them your property is no longer available. Many DVC owners list with multiple companies and I have never heard of a seller paying two commissions.

 

[Dean]

I have never heard of a seller paying two commissions.

Neither have I but I have seen one example where the other broker insisted they were due their commission. Of course we don't have the details to know if the broker actually had a buyer or were playing games nor if the buyer were negligent in notifying within a reasonable time. It was presented as the former but we have no way of truly knowing.

 

[Mikamarii]

Thanks for the responses. I can confirm that one company will charge their commission if brought a full price offer regardless if accepted before being Notified it is no longer for sale It is clearly spelled out in the contract though so it is something that is agreed to before listing. Although the scenario is extremely unlikely it still makes us a little apprehensive to list with them as it is a possibility to have to pay them should an offer come in a close time frame as another agency. Since Dean pointed out that agencies co market it doesn't seem worth the risk.

 

[Dean]

Thanks for the responses. I can confirm that one company will charge their commission if brought a full price offer regardless if accepted before being Notified it is no longer for sale It is clearly spelled out in the contract though so it is something that is agreed to before listing. Although the scenario is extremely unlikely it still makes us a little apprehensive to list with them as it is a possibility to have to pay them should an offer come in a close time frame as another agency. Since Dean pointed out that agencies co market it doesn't seem worth the risk.

Some do, just find out which ones. No reason to list multiples times with those. For the rest just be upfront but in reality they really can't collect it anyway and there's no reason to be difficult without true reason. Just like I wouldn't make multiple offers at one time without being up front about it. Taking advantage of the 10 day cancelation period inappropriately is one of the VERY few times in timeshares where one can use the term unethical but legal.

 

[Jason@dvcstore]

I can confirm that one company will charge their commission if brought a full price offer regardless if accepted before being Notified it is no longer for sale

I just want to understand I am on the same page as to what you are saying. Are you saying there is a company that will list your property for sale and then they will tell you they have a full price buyer (no contract signed by the buyer and no deposit from the buyer) and they will say you owe them the commission. I can understand if it was at closing and the buyer already returned the initial documents and deposit and then the buyer returned final documents with final payment.

 

[Dean]

I just want to understand I am on the same page as to what you are saying. Are you saying there is a company that will list your property for sale and then they will tell you they have a full price buyer (no contract signed by the buyer and no deposit from the buyer) and they will say you owe them the commission. I can understand if it was at closing and the buyer already returned the initial documents and deposit and then the buyer returned final documents with final payment.

I can confirm this has been reported once on DIS but it's been a few years. Of course you never know the details.

 

[Mikamarii]

I just want to understand I am on the same page as to what you are saying. Are you saying there is a company that will list your property for sale and then they will tell you they have a full price buyer (no contract signed by the buyer and no deposit from the buyer) and they will say you owe them the commission. I can understand if it was at closing and the buyer already returned the initial documents and deposit and then the buyer returned final documents with final payment.

This is taken directly from the selling agreement. I didn’t want to identify the agency as not sure the rules so I replaced it with ......

“This agreement is to ..... a licensed real estate broker. It is the owners responsibility to contact ...... in writing if the property is no longer available for sale. This will stop further efforts by us to secure a buyer. If a full price offer is received for your property and .....has not received communication in writing that the property is no longer for sale, the seller is required to pay ..... the full sales commission as ...... performed in procuring a buyer to meet the seller’s requested price. Your signature on this document signifies agreement. The seller may remove their listing at any time and without penalty as long as it is prior to ...... providing a seller with a full price offer.”

 

[dvcsince93]

Wow, that is disturbing, such a condition is ripe for misuse. Buyers are not always the most reliable people- i've seen where buyer's remorse can set in. The last agreement I listed-with 2 agents- received about 4 "offers" between the two agents before a buyer actually went through with it. None of the offers were full price but that doesn't change the fact, that the agent swore they were going to buy it before they didn't. So, the idea that a broker would try to get a commission based solely on a buyer expressing the desire to purchase, is scary...and ridiculous.

 

[Jason@dvcstore]

This is taken directly from the selling agreement. I didn’t want to identify the agency as not sure the rules so I replaced it with ......

“This agreement is to ..... a licensed real estate broker. It is the owners responsibility to contact ...... in writing if the property is no longer available for sale. This will stop further efforts by us to secure a buyer. If a full price offer is received for your property and .....has not received communication in writing that the property is no longer for sale, the seller is required to pay ..... the full sales commission as ...... performed in procuring a buyer to meet the seller’s requested price. Your signature on this document signifies agreement. The seller may remove their listing at any time and without penalty as long as it is prior to ...... providing a seller with a full price offer.”

I would guess they simply use those words so that sellers notify them to take the property off the market. I can't imagine a seller actually paying a commission in that scenario and I can't imagine a company pursuing a seller for the commission simply because a seller hadn't told them to take the property off the market.

 

[Dean]

I would guess they simply use those words so that sellers notify them to take the property off the market. I can't imagine a seller actually paying a commission in that scenario and I can't imagine a company pursuing a seller for the commission simply because a seller hadn't told them to take the property off the market.

Or a broker being able to collect it even if they insisted.

 

[stuartsong]

I would think that if you received an offer at full asking price, it the broker that presented the offer first that has the priority and the sale.