I actually had a case once where after showing and describing to who I thought was my "client" numerous properties both in person and via e-mail listings (yes, Peter, this one is for you) he ended up putting a contract on a property that I had shown and described to him. I had just trusted him and handled it informally and had not asked him to sign any buyer agent agreement.
Could I claim "Procuring Cause" and try to lay claim to any part or portion of a commission or even a "finders fee" ? No ! Without any type of buyer agency agreement in place, I had absolutely no recourse whatsoever.
I got burned on this one and this is why I will not work with a "Buyer" unless I have an Exclusive Buyer Agency Agreement in place that also calls for or has a provision or stipulation in it that even if the Buyer Agency Agreement expires or is revoked or rescinded unilaterally by the Buyer; that if they subsequently put a contract on a property that was "shown or described to them" by me within a certain period after either expiration or unilateral rescission of the Buyer Agency Agreement, my broker and I are legally entitled to claim and assert "Procuring Cause" and lay claim to the buyer agent/broker commission, either through legal action against the Buyer and/or through Association of Realtor arbitration with the buyer broker/agent who received the commission at settlement.
It would be the fault, and legal culpability, of not only the buyer for failing to disclose to broker B the existence of my "extended" Procuring Clause provision but also broker B failing to ask buyer if they were still under any type of enforceable contract with another buyer agent, licensee or broker. This is also why, when I am working with a Buyer who does sign my Exclusive Buyer Agency Agreement, I also have a stipulation regarding the aforementioned so that neither myself nor my broker find ourselves in a dispute over the commission later.
I simply will not be the chump that does the dirty work and shows a "client" numerous properties; then when they are ready to put a contract on a property they run to to their friend or buddy who is a licensee to write the contract and collect the commission. (Kristy, this one is for you).
I had another incident exactly like this where a woman (Angela, this one is for you) was using me to show her properties and would call me frequently for other landlord/tenant advice; then one day I happen to run a search of local public records on her (as I suspected I had been or was being "hoodwinked") and much to my shock and surprise I see that she had just bought a property.
And the crowning glory of them all is this one: after showing what I thought was a true "client" numerous properties on weekends over the course of a couple months, certain red flags starting going up and I flat out confronted them and asked whether they were REALLY looking to buy a home or not. They confessed, and said they were new in town and were told if they just called a Realtor they could get a free sight seeing tour and be driven around and shown numerous areas of the metro area to get a feel for things and where things were if they just pretended to be house hunting !!
Fool me once.... shame on you; fool me twice... SHAME ON ME. I WONT BE FOOLED AGAIN !!
Unfortunately the National Association of Realtors (NAR) Buyer Agency Agreement forms absolutely SUCK !!! and provide little to absolutely NO agent protection provisions or clauses; they are overly buyer friendly and allow the buyer to walk under any circumstances even after substantively engaging the services of the agent/broker. They could not give a damn whether you get burned or not. Your broker who sits in his office won't give a damn either, because there's no loss to him and he wasn't the one out their beating the streets with a deadbeat or sociopath "client".
So... being a Paralegal and thinking about all the "what ifs" and based on past experiences such as those described here in this post, I developed and drafted my own Agent Retainer/Deposit Agreement & Exclusive Buyer Agency Agreement Addendum that is incorporated by reference and attached thereto or made apart of the Association of Realtors form. It is perfectly legal, binding and enforceable.
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