Seeking advice on a situation that is a bit complicated to explain. I recently bid on an coop in Manhattan. I did not have a broker the two times I saw it with the sellers broker, who pressured me to use him to represent me as well in the negotiations. Eventually I told him that I would retain my own broker, which I did. Our negotiations came to an impasse with 20,000 separating us. The broker... [more]
Seeking advice on a situation that is a bit complicated to explain.
I recently bid on an coop in Manhattan. I did not have a broker the two times I saw it with the sellers broker, who pressured me to use him to represent me as well in the negotiations. Eventually I told him that I would retain my own broker, which I did. Our negotiations came to an impasse with 20,000 separating us. The broker then lowered the asking price of the apt to 50k above what they said they were willing to take from me, at which point I agreed to the seller's price 20k above my last offer and they accepted our offer.
A day later, the sellers broker called to say another offer had come in higher than ours, wouldn't tell us what the offer was, and said the seller was taking that offer and wasn't interested in negotiating further with us. I spoke with my broker and resubmitted a new offer at the lowered asking price (50k more than my accepted offer from the day before). The sellers broker said the buyer wasn't interested.
Here is the interesting part. I found out when the apt closed that the sale price was 30k less than my final offer. I believe the sellers broker found another buyer who he could represent and thereby pocketed double the commission he would have gotten from us but ended up shortchanging the seller by 30k. I am going to try to contact the seller directly and see if they ever were told of our final offer. If they weren't told, could I take any legal action against the broker? Is there anything else I could do, such as report the broker to REBNY?
Any thoughts would be appreciated.
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I suggest you start with the seller agent's manager and then (if you don't get satisfaction or if you just feel like it) the NY Secretary of State (the licensing authority for RE agents and brokers). You can also try to talk to the seller, who should be upset if the facts turn out to be as you have outlined, and who might have better leverage with the firm (as their client) and the DoS.
But the first question is whether the seller's agent gave you a NYS Agency Disclosure form; if so, whether it claimed "dual agency" or that you would be unrepresented. (What the agent *told* you is also relevant, but the document is a key starting point.)
Expect the manager (if s/he talks to you) to talk about how well qualified you were for the coop, and how well qualified the successful bidder was. (I know you say the agent said the winning bid was higher, but the firm may try to explain that the other bid was not really higher but was 'better' because the winner was a slam dunk for the board and you might not be. Just sayin'.)
If you have a document that shows the agent did not do the paperwork (and disclosures) right, the manager should talk to you and the DoS should be interested. Whether anyone cares enough to do anything about it is another story....
Which brings me to the nub for you. If the agent truly did mis-behave (and the documents support that), you might succeed in getting the agent and firm in trouble, but that will be the extent of your satisfaction. Someone else already owns what you wanted to buy, so there is no one who can give you the coop or (probably) any money (that is unlikely under any circumstances, but consult your lawyer ;-). Your call as to whether that "satisfaction" is enough to justify the effort.
If so, you'll have more heft is the seller is also upset and willing to complain. In fact, the seller might actually have a claim for money (but should consult with his/her lawyer ;-).
Would *love* to hear how this eventually turns out, if you decide to pursue it.
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Response by inonada
over 14 years ago
Posts: 7934
Member since: Oct 2008
You should definitely contact the seller. At the end of the day, they are the only one who can discern whether or not there was a breach of fiduciary responsibility.
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http://therealdeal.com/newyork/articles/co-brokerage-and-commissions-in-conflict
I suggest you start with the seller agent's manager and then (if you don't get satisfaction or if you just feel like it) the NY Secretary of State (the licensing authority for RE agents and brokers). You can also try to talk to the seller, who should be upset if the facts turn out to be as you have outlined, and who might have better leverage with the firm (as their client) and the DoS.
But the first question is whether the seller's agent gave you a NYS Agency Disclosure form; if so, whether it claimed "dual agency" or that you would be unrepresented. (What the agent *told* you is also relevant, but the document is a key starting point.)
Expect the manager (if s/he talks to you) to talk about how well qualified you were for the coop, and how well qualified the successful bidder was. (I know you say the agent said the winning bid was higher, but the firm may try to explain that the other bid was not really higher but was 'better' because the winner was a slam dunk for the board and you might not be. Just sayin'.)
If you have a document that shows the agent did not do the paperwork (and disclosures) right, the manager should talk to you and the DoS should be interested. Whether anyone cares enough to do anything about it is another story....
Which brings me to the nub for you. If the agent truly did mis-behave (and the documents support that), you might succeed in getting the agent and firm in trouble, but that will be the extent of your satisfaction. Someone else already owns what you wanted to buy, so there is no one who can give you the coop or (probably) any money (that is unlikely under any circumstances, but consult your lawyer ;-). Your call as to whether that "satisfaction" is enough to justify the effort.
If so, you'll have more heft is the seller is also upset and willing to complain. In fact, the seller might actually have a claim for money (but should consult with his/her lawyer ;-).
Would *love* to hear how this eventually turns out, if you decide to pursue it.
You should definitely contact the seller. At the end of the day, they are the only one who can discern whether or not there was a breach of fiduciary responsibility.
who doesnt love brokers?
Who's the broker?