Profile picture for raj_home2011

Swapping brokers

Guys
if I see a house with a broker (without signing any agreement) and then want to use another buying broker to buy the house, is that legally permitted?
Thanks
  • February 08 2012 - New York
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Answers (6)

Legal yes.. It has happened to all of us, as an agent you spend a good amount of time with a person then they go with another agent.. There is also the other side, Someone you know or a friend uses another Realtor to see a million homes then when ready to buy they call you.... It happens
  • February 08 2012
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Legal yes, Ethical is questionable. It is always good to be honest in your dealings with your current broker. It will depend on the reason you would want to switch brokers.
  • February 08 2012
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If you are speaking to the listing agent showing you the property and you decide to then aquire a buyers agent to make the offer that is perfectly legal. Procuring cause cause by defination is "an unbroken chain of event that leads to a closing" Should you choose to have another agent write the offer you are well with in your rights to have representation in a real estate transaction. It's happened to all of us at one point or another. Might I suggest that you find THE agents that you are comfortable with and enter into a buyers agency agreement with that agent and have them show you all future properties. Best of luck!
  • February 08 2012
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It is true that if you are not contractualy obligated to a showing agent you may purchase from another agent. This then makes agent 2 the procuring cause. If you however deliberately defraud the first agent you may be liable to pay a commission. Litigation is a long drawn out process which is costly and most people agents and customes alike want to avoid it. If you have a problem with agent number one or if they didn't disclose something important about the property correctly or lied to you then you are within your rights. If you are being wooed by an agent with claims of being able to get you a better price beware! this agent is willing to do almost anything to make a sale. Then think what might they do to get you to buy. Being unethical or dishonest is not a trend it's a character and personality trait.
good luck
  • February 08 2012
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Profile picture for sunnyview
Maybe. It depends if that broker has done more work for you than just that and whether the broker who first showed you the house in a fighting mood. It is not an unusual situation.

Most of the time if it is just one showing there are no issues,  but I would let your current broker know that you first saw it with the other agent so any professional kinks are worked out in advance just to be safe.
  • February 08 2012
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The issue would be called 'procuring cause'. Even though you didn't sign an agreement with Broker A, they did show you the property. If they find out that you eventually purchased the home with Broker B, they might ask Broker B for a portion of their commission. Whether Broker A was successful would be determined by a mediator.

Would this materially  affect you? No. Broker A has no financial claim against you.

Should you tell Broker B that Broker A previously showed you the property but you were not under any contractual obligation at the time of showing? Yes.

Does the question of procuring cause come up? Yes - but not that often and it is difficult to enforce as many brokers refuse to litigate the issue unless it is cut and dried (contract signed by buyer who then went to another agent).
  • February 08 2012
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