Maintenance: broker's misrepresentation

That's frustrating, highend. Consult your attorney about any potential legal recourse. Move on to another apartment; there are many out there and more coming every day. Besides, if the broker was deceptive about maintenance, there may be other unpleasant surprises ahead with this one.

I just want to have reimbursed my out of pocket for this partial due diligence, but also I am considering to lower the offer and have the difference paid by the broker with his 6% commission...

Isn't there also a licensing board you can report him to?

yes yes my attorney said something about the DOS, but I am more concerned about my deal, after that I will take care of the broker's license...

I had this happen once at the closing table,the listing broker and seller refused to ante up. I took half the difference for a year out of my commission so we could close that day. Fortunately it was not 30% higher!!

That was the first time I had that happen in 20 years in this biz. I now make sure I triple confirm the mnt. myself as well as make sure the attorney verifies it as part of the due diligence.

Keith, it sounds like you operate in good faith, where as highend's broker doesn't. Highend, if you still want to pursue this apartment and the seller is counting on this deal to go through (perhaps doesn't have a backup offer), there may be some flexibility in the offer to compensate you for this headache and the ongoing unexpected maintenance.

rlmnyc: exactly, I would be upset for 5 minutes over a mistake and then make a decision, but it's so clear that this is not a mistake. At the end I will ask my attorney to deal directly with the seller's attorney for a lower price. I don't care if that broker will lose money, for sure he's going to lose his "reputation" very soon.

That sucks highend. As a non lawyer, I'd have to think there is some recourse for you.

I'm curious, and without giving a name yet, that would be a mistake until your matter is rectified, is the broker with a large firm or with a small one.

and dont forget to report it to streeteasy if the listing appears incorrectly here! i looked at a place that lied about sq footage, reported them, and sure enough the listed was corrected.

agents are protected where we report in good faith the maintenance that the seller tells us, but this sounds like an actual misrepresentation -- this sounds like a REBNY complaint to me.

ali r.
{downtown broker}

many times on this board folks have asked why they need a buyer's broker. i think we just found the answer.

you can report agent to REBNY, but sometimes the maint rises without the seller notifying the broker. Standard protocol is for listing broker to contact managing agent at beginning of listing agreement and confirm all these numbers for marketing, and to follow up with seller on any changes during course of the agreement. Maybe there was a temp assessment added that broker was not told about?

Not sure. I try not to only trust the seller as they have a vested interest in getting as much money as possible and that means most sellers ask to inflate the size of the unit or underestimate maint costs. So I go directly to managing agent to confirm. Its a tough one, but one that doesnt surprise me in this industry in this marketplace

state licienced professionals are subject to investigation by state agencies. If you feel that this broker has purposely behaved in a unethical or unprofessional way you can contact: conduct@mail.nysed.gov

Q: How do I file a complaint?

A: You will need to complete a complaint form (PDF). Send your completed complaint form directly to the regional office nearest you or fax it to our main professional discipline office at 212-951-6537.

If you would like to speak with someone first about professional misconduct or unlicensed practice, you may call our complaint hotline at 1-800-442-8106, contact our nearest regional office, or e-mail conduct@mail.nysed.gov for more information.

Q: If I want to file a complaint, do I have to be sure the professional is guilty?

A: No. If you think you may have been the victim of professional misconduct, file a complaint form (PDF). The Office of the Professions will look into the complaint and determine if misconduct has occurred.

Q: Can you order a licensed professional to give me my money back?

A: OP does not have the authority to get involved in fee disputes; except for programs such as Worker's Compensation and Medicaid, where fees are set by law, licensees can charge whatever they believe appropriate. We can assist you, however, if you believe that you were charged for work that was not done or which was done poorly.

Here's the Professional Discipline Complaint Form
http://www.op.nysed.gov/opd-complaint.pdf

30% higher should weigh heavily into your purchase price. DO NOT SIGN -- Ask for a corresponding reduction in sales price OR BAIL completely. Seller's attorney can deal with listing broker.

What did it say on your term sheet -- prior to the contract??

difference will be far more than the 6% difference -- this maint. will be every month!!!!

not a temporary assessment: Maint increased in February and the apt was on the market for the first time in June. I did not have a term sheet, but I gave the show sheet from the Open House at my attorney. He then checked with the listing broker and it turned out that Maint were much higher. At that point I called also a broker that I know and he confirmed that numbers appeared to be the same that I had on the show sheet. At that point I called the broker but he did not return my calls. Then my attoreny called the seller's attorney and we discovered that this was done on purpose, unless the seller's attorney is trying to protect the seller and not the broker. At this point I don't even care anymore, I will buy something else and report the broker.

or really negotiate the price down.....shave off 30% off of offer price....

If you complte the deal than you have no recourse. If you don't complete the deal because you are unable to negotiate the price downbased on the long term value of the maintenance difference, then I suppose you have a claim against the broker for the costs, time and effort you expended.

But remember, if you complete the deal after learning this, you have no legal claim. You can certainly complain to the RE boards and licensors.

You can get mad or get even. The silver lining is that you have been handed a wonderful negotiating tool to get a great deal. Use it well! If you truly want the place, figure out exactly what reduction in price makes you whole, from a net $ perspective, and use as a starting point.
If the maintenance is just too large for you to be interested, make a stink with Rebny.

Drop it, walk away, don't look back, don't spend time going after a broker where even in the BEST turnout, you personally won't get anything out of it (except "satisfaction). You energy is better spend looking for the apartment you will actually buy. Dwelling on this will only lead to more frustration and anxiety on your part, not less, and you'll be surprised how little long term satisfaction you will get even if the broker gets barred for life from the "profession".

Just so you know, the listing agreements we use have the maintenance/cc written in.

So when the owner signs, the owner is obviously and clearly verifying that number.

So if you report the broker, if their agreement has this feature, the broker will be exonerated.

As you suggest, you don't know who is doing the misleading. I don't ask owners to prove their maintenance/cc charges to me when they sign, you're supposed to trust your client, but maybe not in this market.

A lower price does not compensate for high maintenance in my opinion, because you pay that higher amount month after month, year after year, and it does nothing for the long-term valuation of the apartment. Simply put, it would have to be a truly drastic price reduction to compensate, and that's not in your best interests.

I'm sure your disappointed....but what you end up with will be even better, you'll see.

{Manhattan real estate agent.}

After sleeping over it I will just walk away.
I don't even want to go after the broker if he updates the listing immediately and it looks like he's going to pay the legal fees related to this partial due diligence, so it's enough for me.
In any case it's a shame.