A broker tried to sell us a house, let us do inspections and had a contract sent over without letting us know it was already under contract and she was actually also representing the other buyer. She and the other buyer were trying to flip the property to us because the buyer did not actually have the money to complete the deal themselves. Once we received contract and saw this, attorneys advised... [more]
A broker tried to sell us a house, let us do inspections and had a contract sent over without letting us know it was already under contract and she was actually also representing the other buyer. She and the other buyer were trying to flip the property to us because the buyer did not actually have the money to complete the deal themselves. Once we received contract and saw this, attorneys advised the transaction was defrauding the original seller and not legal. Broker then said the seller would try to sell to us directly and get out of contract. Kept calling and asking if we would pay cash ( 6 figures ) to the other purchaser to buy them off. Finally called the sellers attorney myself and he and seller had no knowledge of any of this. Meanwhile, other purchaser eventually closed after 5 months of this for about 1/2 of market value.
Is it even worth filing a complaint? Does that actually do anything? SO irritated to be strung along like this
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Response by Flutistic
almost 10 years ago
Posts: 516
Member since: Apr 2007
Yes, complaints work. Personal experience. Easy to do on line too.
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Response by 2013nyc
almost 10 years ago
Posts: 67
Member since: Feb 2013
Thanks Flutistic! I found the online form for DoS and will send it in.
I wonder how long things take? And what steps Rebny or DOS takes with brokers.
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Response by fieldschester
almost 10 years ago
Posts: 3525
Member since: Jul 2013
what exactly do you want from the complaint? and do you think the Department of State can even understand what you are exactly complaining about - that someone else is stupid so they should take action?
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Response by 2013nyc
almost 10 years ago
Posts: 67
Member since: Feb 2013
The broker lied about who she was representing, both to me and to the seller. She talked a senior citizen into accepting 1/2 market value for his property when there were at least 2 other market value offers on the table. She stalled the closing for at least 6 months, maybe more, until she and the purchaser found another purchaser to do an illegal same day flip transaction that meant the "purchaser" never had to actually pay for the property but would make an immediate a sizable profit.
It is a scam. The Dos division of licensing services should be able to understand and be interested?
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Response by Flutistic
almost 10 years ago
Posts: 516
Member since: Apr 2007
What happens depends on your complaint. If it's relatively minor--for example, a broker using a fake address--you don't hear back, but you can see the problem is fixed. (Broker in question had a post office box and used the post office building's address as his official business address. Why would somebody do that, you say? Some of you reading this know why) In my experience I have received phone calls, text messages and letters from DOS regarding my complaints. Either there are a lot of shady real estate agents and brokerages out there, or I have a gift for attracting knucklehead.
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Response by front_porch
almost 10 years ago
Posts: 5312
Member since: Mar 2008
I'm not an attorney, but this doesn't sound "relatively minor" to me. The fact that everybody is not more up in arms about this is a sad commentary on the low standards outsiders apply to my profession.
This anecdote sounds like misrepresentation, fraud, and breach of fiduciary duty, all actionable. Fraudulent practice is , in itself, a reason for a salesperson to lose her license.
ali r.
{downtown broker}
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Response by fieldschester
almost 10 years ago
Posts: 3525
Member since: Jul 2013
This sounds more than worthwhile and for the AG, but not by you, rather from the aggrieved party.
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Response by Flutistic
almost 10 years ago
Posts: 516
Member since: Apr 2007
I agree, FP. This reminds me, another thing to do regarding a salesperson or associate broker is to get the manager on the phone, or even send an email to the head of the company. The people who run these big brokerages are generally good business people, they want to hear about it if there are problems.
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Response by guardstogo_ges_1844480
almost 10 years ago
Posts: 0
Member since: Jan 2016
until she and the purchaser found another purchaser to do an illegal same day flip transaction that meant the "purchaser" never had to actually pay for the property but would make an immediate a sizable profit.
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Response by 2013nyc
almost 10 years ago
Posts: 67
Member since: Feb 2013
guardstogo_ges_1844480 : the first purchaser set up the contract so they were a middle man and didn't have to pay for the property. They just made a very low offer price and then once they found another buyer to pay market value, they set up the closing and took the difference in price as profit and only then paid the original seller what they had promised.
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Response by ryan_long_1590285
almost 10 years ago
Posts: 1
Member since: Jan 2015
What the original buyer was trying to do is called "wholesaling". It is a common practice taught by "real estate investor" courses that can be found at any mid-rate hotel conference room anywhere in America. This is what they mean by "use other people's money to buy houses". They give a contact deposit and say that if they don't close in X number of days, the seller can keep the deposit. During that time frame, they solicit the property to other buyers with hopes of getting a higher offer and selling the rights to the contact of sale.
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Yes, complaints work. Personal experience. Easy to do on line too.
Thanks Flutistic! I found the online form for DoS and will send it in.
I wonder how long things take? And what steps Rebny or DOS takes with brokers.
what exactly do you want from the complaint? and do you think the Department of State can even understand what you are exactly complaining about - that someone else is stupid so they should take action?
The broker lied about who she was representing, both to me and to the seller. She talked a senior citizen into accepting 1/2 market value for his property when there were at least 2 other market value offers on the table. She stalled the closing for at least 6 months, maybe more, until she and the purchaser found another purchaser to do an illegal same day flip transaction that meant the "purchaser" never had to actually pay for the property but would make an immediate a sizable profit.
It is a scam. The Dos division of licensing services should be able to understand and be interested?
What happens depends on your complaint. If it's relatively minor--for example, a broker using a fake address--you don't hear back, but you can see the problem is fixed. (Broker in question had a post office box and used the post office building's address as his official business address. Why would somebody do that, you say? Some of you reading this know why) In my experience I have received phone calls, text messages and letters from DOS regarding my complaints. Either there are a lot of shady real estate agents and brokerages out there, or I have a gift for attracting knucklehead.
I'm not an attorney, but this doesn't sound "relatively minor" to me. The fact that everybody is not more up in arms about this is a sad commentary on the low standards outsiders apply to my profession.
This anecdote sounds like misrepresentation, fraud, and breach of fiduciary duty, all actionable. Fraudulent practice is , in itself, a reason for a salesperson to lose her license.
ali r.
{downtown broker}
This sounds more than worthwhile and for the AG, but not by you, rather from the aggrieved party.
I agree, FP. This reminds me, another thing to do regarding a salesperson or associate broker is to get the manager on the phone, or even send an email to the head of the company. The people who run these big brokerages are generally good business people, they want to hear about it if there are problems.
until she and the purchaser found another purchaser to do an illegal same day flip transaction that meant the "purchaser" never had to actually pay for the property but would make an immediate a sizable profit.
guardstogo_ges_1844480 : the first purchaser set up the contract so they were a middle man and didn't have to pay for the property. They just made a very low offer price and then once they found another buyer to pay market value, they set up the closing and took the difference in price as profit and only then paid the original seller what they had promised.
What the original buyer was trying to do is called "wholesaling". It is a common practice taught by "real estate investor" courses that can be found at any mid-rate hotel conference room anywhere in America. This is what they mean by "use other people's money to buy houses". They give a contact deposit and say that if they don't close in X number of days, the seller can keep the deposit. During that time frame, they solicit the property to other buyers with hopes of getting a higher offer and selling the rights to the contact of sale.