Buyer Agency Agreement - Another Reason I Require A WRITTEN One

Although it was totally ILLEGAL and unethical of a loan officer or mortgage broker to do, here's what they told the "client" I had been showing properties to for quite some time as a "buyer's agent" during a tough Seller's market period:

"We can get you a better interest rate on your loan, but you'll have to dump your current Realtor and go with mine"

Since the buyer hadn't signed anything and didn't put down a retainer fee or deposit with me, what do you think they ended up doing ?  The right thing ?  Hell no, he heard "cha-ching" only in his head and probably didn't hesitate for a fraction of a second and said, "sure, I'll go with your guy no problem...

The loan officer stole the "client" from me and engaged in a GROSS, nefarious and egregious violation of RESPA; but what recourse did I have after the damage had already been inflicted ?  None !  I discovered all this later and the "client" openly admitted that this was what had occurred when I confronted them about it; and in an almost cavalier manner, said "what did you expect me to do?"  The mortgage broker who stole the "client" was obviously getting a "kick-back" from his Realtor so it was in his best financial interests not to see the client's deal consummated through me.  And to add further insult to injury I was the one who had referred the buyer to this particular mortgage broker.  Good one guys !!  I don't blame you, but only myself for allowing this to happen in the first place.  Where you find money; you'll find dishonesty, immorality and corruption.... 

So, this is yet one more real life anecdote and lesson why the "client" cannot or should not always be trusted in an informal or "implied" agency situation even if you are acquaintances or so called "friends" with them.  Business is business as they say...

Had I had that WRITTEN and EXPRESS Exclusive Buyer Agency Agreement, with my own added Addendum and stipulation of extended "Procuring Cause" if the buyer walks or unilaterally revokes the buyer agency agreement; I might have had some solid grounds to seek legal recourse against my former "client" and the loan officer or mortgage broker.