Disputes involving compensation are common between real estate agents, and these types of disputes can even hold up real estate deals and make them more stressful for everyone involved. Real estate agents are usually focused on finalizing a deal and ensuring that every party is happy, but disputes can arise regarding commission percentages, listing referrals, and more.
Whether you are an agent, buyer or seller, there are a few things that you can and should do if there is an agent to agent monetary dispute, including contacting a Fort Lauderdale brokerage disputes attorney.
Disputes often occur between team members
As real estate teams start to grow, disputes often occur between team members or agents from the same brokerage. These disputes often involve deals and agreements that are made between team members regarding compensation.
Disputes can arise based on a lack of a written compensation agreement regarding a particular deal. Even if agreements are written out properly, it does not necessarily mean that they will be honored. Agreements can be interpreted differently, and one party may not hold up to their end of the agreement. In this case, agents have to work out their differences amongst each other or meet with a third party for arbitration.
Many brokers won’t deal with agent to agent disputes
Many brokers don’t want to get involved with agent to agent disputes. They see it as a no win situation because it may jeopardize their relationship with one of the agents. As a result, there are often non-arbitration clauses that agents sign with their broker that explicitly state that the broker will not be involved in monetary disputes. This seems perfectly just, but an agent still may have a legitimate claim regarding unfair compensation or another type of dispute.
If arbitration is not possible there may not be recourse
Agents should always try to deal with disputes regarding compensation between each other or with the assistance of an attorney. Resorting to litigation for most disputes is undesirable. If a dispute is somehow prolonging a deal, it’s even more important for the agents to settle it quickly to protect their reputation and avoid stressing their clients out.
If you are involved in an agent to agent real estate dispute, Mark Schecter at Schecter Law is a Fort Lauderdale brokerage disputes attorney who can give you guidance on your particular situation. Schedule a consultation today by calling (954) 779-7009.
Like any business relationship, real estate agents and buyers and sellers can have disputes. Many disputes result from poor communication, but in other cases real estate agents don’t provide the level of service that the buyer or seller expects.
Clients who feel neglected are likely to end up causing disputes that can slow transactions down or cause them to end entirely. Hiring a Fort Lauderdale real estate lawyer can be very helpful for resolving many of these disputes, as they can act as an intermediate representing the interests of the buyer and try to sort out problems with a particular agent.
It’s crucial to pick the right agent from the beginning
Both buyers and sellers need to be extremely careful to pick the right agent from the beginning. Buyers and sellers need to perform due diligence and hire an agent that has the expertise and the background that they are looking for. Many people choose an agent without doing any research at all, and this is one of the main reasons why disputes occur. Sellers are more likely to interview multiple agents before making a final choice, while buyers are often more impulsive and choose the first agent they meet.
Discuss your expectations openly
Expectations for the agent need to be discussed openly such as the frequency of communication and the desire for regular meetings. If there are issues that are important to the seller or buyer, they need to be clearly addressed at the start of the agreement. Buyers or sellers who don’t communicate what they want to their agent can run into problems when tensions build up and concerns are not addressed in the open.
Work it out with the brokerage
In some cases, the buyer or seller may not want to work with a particular agent anymore due to an unresolvable conflict. Buyers can change agents a lot easier than sellers, as a general rule. Every seller has to sign a listing agreement while some buyers don’t even have contracts with their agent.
Whether you’re a buyer or seller, you can usually speak to the broker in charge of the agent to resolve a conflict. In many cases you can be assigned another agent from the same office without voiding your contract or running into compensation disputes.
To learn more about how to resolve issues with your real estate agent, contact Mark Schecter, a leading Fort Lauderdale real estate lawyer by calling (954) 779-7009.
You should never sign a contract without having a South Florida residential real estate attorney review the contract before you sign the contract, as you may have no adequate legal remedy even if there are unfavorable or unfair terms. Any questions or concerns you have about the contract and the property need to be addressed before the agreement is signed. Once the contract is signed, it is usually to late to protect your interests. Most importantly, a skilled South Florida residential real estate attorney will be able to catch last minute hidden pitfalls with the contract that can cost you such as a lack of a remedy for property damage, property insurance issues, verbal promises that were not translated to writing, and more.
An experienced South Florida residential real estate attorney will be able to advise you on the real estate, legal and tax issues which may arise at closing, such as Florida property taxes, potential use of property issues, zoning issues, income tax consequences and others. A South Florida residential real estate attorney will also perform all of the duties that would normally be handled by a title company at closing including title examination, researching liens on the property, checking the status of real estate taxes, looking up property restrictions and easements and more.
The cost for hiring a South Florida residential real estate attorney instead of a title company is almost the same, and a South Florida residential real estate attorney can handle every aspect of a real estate closing and prepare every document necessary. A South Florida real estate lawyer can also handle any steps required to clear title defects if necessary. Don’t make the mistake of relying on your real estate agent’s advice at closing. A real estate agent has an interest of seeing the transaction close quickly in order to get paid and cannot legally advise you on any aspect of your contract. Your real estate lawyer will be unbiased and can answer questions about real estate law that your agent will not be able to answer.
A real estate agent can help out with some aspects of the process such as connecting the buyer and seller and initiating negotiations, but only a real estate attorney can perform the due diligence required to protect your full interests from the very beginning of contract negotiations to the very end. If you are at the point of closing, you need to hire a real estate attorney immediately to ensure your interests are protected. Call Schecter Law now to schedule a consultation and get the experienced and professional legal representation you need for your real estate closing
Fort Lauderdale is sometimes known as the “Venice of America” because of its expansive and intricate canal system. There are over one-hundred miles of waterways within the city limits. Along these waterways are numerous luxury residential real estate properties. Many of the properties are located on ocean-access canals leading to the Intracoastal Waterway. Others are located directly on the Intracoastal Waterway. The combination of waterways and proximity to the Bahamas and Caribbean makes Fort Lauderdale a major yachting center.
Brokerage commissions should be established by a written listing agreement between the seller and their listing broker. The commission split between listing broker and cooperating brokers in the event of a buyer’s default, or in the event of closing, should also be established by writings between the licensees involved. Additionally, whether commercial or luxury residential real estate, the buyer’s broker may agree to rebate part of the purchase price to their clients. (more…)
Part III: Closing
If you take the time to be prepared, a closing should be simple and run smoothly. A closing is basically the buyer giving the seller their money and the seller giving the buyer the deed. While there is more involved than that, preparing with experienced Fort Lauderdale luxury real estate attorneys will help the closing process run efficiently.
Closing takes place at an attorney’s office, broker’s office, or some other place that can officially record the sale. The closing should be attended by the buyer and seller, their attorneys, and the closing agent. Additionally, the real estate agents, witnesses, and a notary may be present. A party may choose to attend closing without counsel; however, unexpected issues may arise that an attorney would be better equipped to handle.
In Florida, residential real estate licensees may serve as a single agent, transaction broker, or maintain a no-representation status in a luxury real estate transaction. It is presumed that all licensees are acting as transaction brokers unless a single agent or no brokerage status is designated in writing to the customer. A transaction broker provides limited representation to a buyer, seller, or both in a real estate transaction but does not represent either in a fiduciary capacity or as a single agent. Limited representation allows a licensee to facilitate a real estate transaction by assisting both the buyer and the seller, but a licensee will not work to represent one party to the detriment of the other party when acting as a transaction broker to both parties.
There are different types of listing contracts that may be entered by luxury real estate brokers. In Florida, the most common listing contract is an exclusive right of sale. The exclusive right of sale gives brokers the best chance for a return on expenses incurred trying to sell a home. An exclusive agency listing or an open listing may also be entered; however, these listings are less desirable.
Deeds are used to convey title to real estate. An important aspect of a real estate transaction is the type of deed being used. The type of deed being used determines the warranties the grantee is receiving from the grantor. The three types of deeds used in Florida include general warranty deeds, special warranty deeds, and quitclaim deeds. Our Fort Lauderdale real estate law firm can assist in luxury real estate transactions involving deeds.