Agent Strong Arm Tactics

[Ms Pington]

Fellow piggs,

I have been watching these boards for a while now, first time posting though.

So here’s the deal: I have been working with a buyer’s agent for the past month. I put in an offer on a house that was accepted after a couple of rounds of negotiation. After I signed the offer, my agent who works with a lender came back with a good faith estimate which did not include all upfront costs. I did my research on those and asked him and he said that they used the wrong form “by mistake”. I am having trouble trusting him since then. I feel that he may not have been “on my side” during the negotiations. He also tried to discourage me from having a home inspection. I want to back out of the deal. All this while I haven’t had any direct contact with the seller. Now he says that the seller won’t sign the cancellation of contract document unless I sign an exclusive representation agreement with him. Does that even make any kind of sense? What are my options here? I feel that he will act difficult about giving back the cancellation papers and hold them back. I would think that he is legally required to send all communication about my deal to me. Any advice greatly appreciated.

[ucodegen]

I did my research on those and asked him and he said that they used the wrong form “by mistake”

Then it is his mistake. Any increases in cost may end up being his responsibility. Don’t sign anything new at this point. If it was the wrong forms, it may stop the transfer.

He also tried to discourage me from having a home inspection. I want to back out of the deal.

Make the home inspection a pre-requisite. Did you sign anything directly waiving the home inspection? (hope not). Things found during the home inspection can end the sale/purchase.

Now he says that the seller won’t sign the cancellation of contract document unless I sign an exclusive representation agreement with him.

This is strange and questionable, maybe even illegal. Sounds like the seller and the agent may be related or the same person. Which contract document is this? Do you have a form title/description?

I would think that he is legally required to send all communication about my deal to me.

Yes, definitely if requested.

Useful info:
http://homebuying.about.com/od/offersnegotiations/qt/cancelcontract.htm

[ucodegen]

I did my research on those and asked him and he said that they used the wrong form “by mistake”

Then it is his mistake. Any increases in cost may end up being his responsibility. Don’t sign anything new at this point. If it was the wrong forms, it may stop the transfer.

He also tried to discourage me from having a home inspection. I want to back out of the deal.

Make the home inspection a pre-requisite. Did you sign anything directly waiving the home inspection? (hope not). Things found during the home inspection can end the sale/purchase.

Now he says that the seller won’t sign the cancellation of contract document unless I sign an exclusive representation agreement with him.

This is strange and questionable, maybe even illegal. Sounds like the seller and the agent may be related or the same person. Which contract document is this? Do you have a form title/description?

I would think that he is legally required to send all communication about my deal to me.

Yes, definitely if requested.

Useful info:
http://homebuying.about.com/od/offersnegotiations/qt/cancelcontract.htm

[ucodegen]

I did my research on those and asked him and he said that they used the wrong form “by mistake”

Then it is his mistake. Any increases in cost may end up being his responsibility. Don’t sign anything new at this point. If it was the wrong forms, it may stop the transfer.

He also tried to discourage me from having a home inspection. I want to back out of the deal.

Make the home inspection a pre-requisite. Did you sign anything directly waiving the home inspection? (hope not). Things found during the home inspection can end the sale/purchase.

Now he says that the seller won’t sign the cancellation of contract document unless I sign an exclusive representation agreement with him.

This is strange and questionable, maybe even illegal. Sounds like the seller and the agent may be related or the same person. Which contract document is this? Do you have a form title/description?

I would think that he is legally required to send all communication about my deal to me.

Yes, definitely if requested.

Useful info:
http://homebuying.about.com/od/offersnegotiations/qt/cancelcontract.htm

[ucodegen]

I did my research on those and asked him and he said that they used the wrong form “by mistake”

Then it is his mistake. Any increases in cost may end up being his responsibility. Don’t sign anything new at this point. If it was the wrong forms, it may stop the transfer.

He also tried to discourage me from having a home inspection. I want to back out of the deal.

Make the home inspection a pre-requisite. Did you sign anything directly waiving the home inspection? (hope not). Things found during the home inspection can end the sale/purchase.

Now he says that the seller won’t sign the cancellation of contract document unless I sign an exclusive representation agreement with him.

This is strange and questionable, maybe even illegal. Sounds like the seller and the agent may be related or the same person. Which contract document is this? Do you have a form title/description?

I would think that he is legally required to send all communication about my deal to me.

Yes, definitely if requested.

Useful info:
http://homebuying.about.com/od/offersnegotiations/qt/cancelcontract.htm

[ucodegen]

I did my research on those and asked him and he said that they used the wrong form “by mistake”

Then it is his mistake. Any increases in cost may end up being his responsibility. Don’t sign anything new at this point. If it was the wrong forms, it may stop the transfer.

He also tried to discourage me from having a home inspection. I want to back out of the deal.

Make the home inspection a pre-requisite. Did you sign anything directly waiving the home inspection? (hope not). Things found during the home inspection can end the sale/purchase.

Now he says that the seller won’t sign the cancellation of contract document unless I sign an exclusive representation agreement with him.

This is strange and questionable, maybe even illegal. Sounds like the seller and the agent may be related or the same person. Which contract document is this? Do you have a form title/description?

I would think that he is legally required to send all communication about my deal to me.

Yes, definitely if requested.

Useful info:
http://homebuying.about.com/od/offersnegotiations/qt/cancelcontract.htm

[urbanrealtor]

At best you are talking about a very real mistake in communication.

Bad.

At worst, you are talking about a very real ethical lapse where the agent is colluding with the loan officer to try to obscure the actual cost of borrowing.

Much much worse.

More realistically, you are talking about an agent who works with a lender he trusts and they regularly quote loan prices in a way that is technically plausible but consistently the most favorable (so as to be appealing to potential customers).

That is bad but more opportunistically savvy than actually scheming.

Lending is less nuanced (in that the object of commerce is more interchangeable and the components of service are more completely disclosed) and for that reason it is easier to shop it.

Additionally, the government just changed some of the rules regarding disclosure to borrowers.

Were I you, I would ask the loan officer to give you a more current and accurate good faith estimate (GFE) and then take that to at least 2 other lenders. Ask for references.

When you show it to the other lenders, ask for them to advise you of any missing or hidden costs and then ask them if they can beat it. When you do this, bring their gfe’s to the other lenders.

If you can do better, then ask whichever lender to lock the loan immediately. This will prevent the loan officer from playing the loan market to try and eke out an additional quarter point on the back end.
Playing is as likely to cost you the loan as to get the LO an extra few thousand.

Anyhoo, thats my advice.

Good luck.

[urbanrealtor]

At best you are talking about a very real mistake in communication.

Bad.

At worst, you are talking about a very real ethical lapse where the agent is colluding with the loan officer to try to obscure the actual cost of borrowing.

Much much worse.

More realistically, you are talking about an agent who works with a lender he trusts and they regularly quote loan prices in a way that is technically plausible but consistently the most favorable (so as to be appealing to potential customers).

That is bad but more opportunistically savvy than actually scheming.

Lending is less nuanced (in that the object of commerce is more interchangeable and the components of service are more completely disclosed) and for that reason it is easier to shop it.

Additionally, the government just changed some of the rules regarding disclosure to borrowers.

Were I you, I would ask the loan officer to give you a more current and accurate good faith estimate (GFE) and then take that to at least 2 other lenders. Ask for references.

When you show it to the other lenders, ask for them to advise you of any missing or hidden costs and then ask them if they can beat it. When you do this, bring their gfe’s to the other lenders.

If you can do better, then ask whichever lender to lock the loan immediately. This will prevent the loan officer from playing the loan market to try and eke out an additional quarter point on the back end.
Playing is as likely to cost you the loan as to get the LO an extra few thousand.

Anyhoo, thats my advice.

Good luck.

[urbanrealtor]

At best you are talking about a very real mistake in communication.

Bad.

At worst, you are talking about a very real ethical lapse where the agent is colluding with the loan officer to try to obscure the actual cost of borrowing.

Much much worse.

More realistically, you are talking about an agent who works with a lender he trusts and they regularly quote loan prices in a way that is technically plausible but consistently the most favorable (so as to be appealing to potential customers).

That is bad but more opportunistically savvy than actually scheming.

Lending is less nuanced (in that the object of commerce is more interchangeable and the components of service are more completely disclosed) and for that reason it is easier to shop it.

Additionally, the government just changed some of the rules regarding disclosure to borrowers.

Were I you, I would ask the loan officer to give you a more current and accurate good faith estimate (GFE) and then take that to at least 2 other lenders. Ask for references.

When you show it to the other lenders, ask for them to advise you of any missing or hidden costs and then ask them if they can beat it. When you do this, bring their gfe’s to the other lenders.

If you can do better, then ask whichever lender to lock the loan immediately. This will prevent the loan officer from playing the loan market to try and eke out an additional quarter point on the back end.
Playing is as likely to cost you the loan as to get the LO an extra few thousand.

Anyhoo, thats my advice.

Good luck.

[urbanrealtor]

At best you are talking about a very real mistake in communication.

Bad.

At worst, you are talking about a very real ethical lapse where the agent is colluding with the loan officer to try to obscure the actual cost of borrowing.

Much much worse.

More realistically, you are talking about an agent who works with a lender he trusts and they regularly quote loan prices in a way that is technically plausible but consistently the most favorable (so as to be appealing to potential customers).

That is bad but more opportunistically savvy than actually scheming.

Lending is less nuanced (in that the object of commerce is more interchangeable and the components of service are more completely disclosed) and for that reason it is easier to shop it.

Additionally, the government just changed some of the rules regarding disclosure to borrowers.

Were I you, I would ask the loan officer to give you a more current and accurate good faith estimate (GFE) and then take that to at least 2 other lenders. Ask for references.

When you show it to the other lenders, ask for them to advise you of any missing or hidden costs and then ask them if they can beat it. When you do this, bring their gfe’s to the other lenders.

If you can do better, then ask whichever lender to lock the loan immediately. This will prevent the loan officer from playing the loan market to try and eke out an additional quarter point on the back end.
Playing is as likely to cost you the loan as to get the LO an extra few thousand.

Anyhoo, thats my advice.

Good luck.

[urbanrealtor]

At best you are talking about a very real mistake in communication.

Bad.

At worst, you are talking about a very real ethical lapse where the agent is colluding with the loan officer to try to obscure the actual cost of borrowing.

Much much worse.

More realistically, you are talking about an agent who works with a lender he trusts and they regularly quote loan prices in a way that is technically plausible but consistently the most favorable (so as to be appealing to potential customers).

That is bad but more opportunistically savvy than actually scheming.

Lending is less nuanced (in that the object of commerce is more interchangeable and the components of service are more completely disclosed) and for that reason it is easier to shop it.

Additionally, the government just changed some of the rules regarding disclosure to borrowers.

Were I you, I would ask the loan officer to give you a more current and accurate good faith estimate (GFE) and then take that to at least 2 other lenders. Ask for references.

When you show it to the other lenders, ask for them to advise you of any missing or hidden costs and then ask them if they can beat it. When you do this, bring their gfe’s to the other lenders.

If you can do better, then ask whichever lender to lock the loan immediately. This will prevent the loan officer from playing the loan market to try and eke out an additional quarter point on the back end.
Playing is as likely to cost you the loan as to get the LO an extra few thousand.

Anyhoo, thats my advice.

Good luck.

[CA renter]

IMHO, everything about this deal sounds sketchy.

If you’re still in the contingency period, it would probably be wise to back out. Don’t be afraid to use legal counsel if he/she doesn’t cooperate.

If they ask why, tell them it’s because you don’t trust them for the reasons you gave above. At this point, if you really want to buy the house, you might want to hire an attorney to work with you on the rest of the deal.

Did they recommend the title/escrow company, inspector, etc.? They might be skimming more off this deal than you think.

If you feel like they have you over a barrel, it might be a good idea to have a friend with a strong personality and lots of business sense to hold your hand through this and/or speak on your behalf — especially if you can’t afford an attorney.

[CA renter]

IMHO, everything about this deal sounds sketchy.

If you’re still in the contingency period, it would probably be wise to back out. Don’t be afraid to use legal counsel if he/she doesn’t cooperate.

If they ask why, tell them it’s because you don’t trust them for the reasons you gave above. At this point, if you really want to buy the house, you might want to hire an attorney to work with you on the rest of the deal.

Did they recommend the title/escrow company, inspector, etc.? They might be skimming more off this deal than you think.

If you feel like they have you over a barrel, it might be a good idea to have a friend with a strong personality and lots of business sense to hold your hand through this and/or speak on your behalf — especially if you can’t afford an attorney.

[CA renter]

IMHO, everything about this deal sounds sketchy.

If you’re still in the contingency period, it would probably be wise to back out. Don’t be afraid to use legal counsel if he/she doesn’t cooperate.

If they ask why, tell them it’s because you don’t trust them for the reasons you gave above. At this point, if you really want to buy the house, you might want to hire an attorney to work with you on the rest of the deal.

Did they recommend the title/escrow company, inspector, etc.? They might be skimming more off this deal than you think.

If you feel like they have you over a barrel, it might be a good idea to have a friend with a strong personality and lots of business sense to hold your hand through this and/or speak on your behalf — especially if you can’t afford an attorney.

[CA renter]

IMHO, everything about this deal sounds sketchy.

If you’re still in the contingency period, it would probably be wise to back out. Don’t be afraid to use legal counsel if he/she doesn’t cooperate.

If they ask why, tell them it’s because you don’t trust them for the reasons you gave above. At this point, if you really want to buy the house, you might want to hire an attorney to work with you on the rest of the deal.

Did they recommend the title/escrow company, inspector, etc.? They might be skimming more off this deal than you think.

If you feel like they have you over a barrel, it might be a good idea to have a friend with a strong personality and lots of business sense to hold your hand through this and/or speak on your behalf — especially if you can’t afford an attorney.

[Author]

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