H
Hondrau
Guest
What is the name of your state? Illinois
Main Question: What legal right does a realtor have to a commission on new home construction?
We contacted a realtor because it was time to move to a bigger home and I signed up to his website to receive weekly selling home updates. I informed this realtor that I was interested in the possibility of new construction. Without out a single shred of information about my financial situation… He informed me that in order for me to build a new home I must first sell and move out of my current place before a builder would work with me.
This upset me a lot because I knew something about on of the community I was interested in and that they were backlogged and it would be many months before I could move into a new home if I choose to build new. I have a friend that had moved into one of these new homes. When we went to visit our friend we very much liked what we saw and our friend raved about the builder and development. That is actually want put us in the market to start searching for a new home.
So, on the advice of a friend, I contacted the builder directly and was informed that they didn’t care how many homes I owned. As long as I could come up with the 5% down that they required at the time of when we signed our contract and could secure financing they didn’t care about other properties. We were able to more than cover the 5% needed to start the process before selling our home.
Well, we had already made an appointment with this realtor to view existing homes and figured we might as well go to consider the all available options. While we were looking, by the 4th or 5th home, he realized that we weren’t interested in anything but new homes. One of the homes he showed us was next to the development where I first told him we were interested so he suggested going to visit. I’ve now learned that this was a BIG MISTAKE! As we viewed the homes I told the sales person the reason we were there were because of previous buyers to the development. The realtor wasn’t 5 feet away and knew that this was the situation for the beginning.
After viewing and driving away the realtor begin to speak poorly of the builder and the school district. This was strike 3 or 4 and at that point I decide that this was not someone I would want to deal with again. In fact I thought he could tell that this was the situation because we didn’t make plans to speak again as he dropped us off at our current home.
A couple days later we signed a contract with this builder for a new home that would take 10 months to build. I signed a referral fee with the builder for my friend. As expected I didn’t heard anything from this realtor until a couple weeks after we signed the contact. The reason he finally contacted me was because I removed my name from the online mailing list for weekly updates. It was then I informed him that we signed a contact with the new builder. He wished me luck in the process and that was the end.
I found out that he went to the builder and demanded to receive his full commission. When I was informed of this I called the realtor directly and after he insulted me, he said he wouldn’t seek a commission. However, the builder said the he is still pursuing the matter and because I did come in with him that they are legally responsible to give him the money. My seller can’t tell me what law this is and I can’t seem to find anything.
If I fired this person and I DO NOT want him to profit or represent me in any form, why is he still getting paid a large sum of money that he does not deserve? I never signed anything, with the realtor or the builder, stating that I wanted this person to be my realtor.
Thank you in advance
Main Question: What legal right does a realtor have to a commission on new home construction?
We contacted a realtor because it was time to move to a bigger home and I signed up to his website to receive weekly selling home updates. I informed this realtor that I was interested in the possibility of new construction. Without out a single shred of information about my financial situation… He informed me that in order for me to build a new home I must first sell and move out of my current place before a builder would work with me.
This upset me a lot because I knew something about on of the community I was interested in and that they were backlogged and it would be many months before I could move into a new home if I choose to build new. I have a friend that had moved into one of these new homes. When we went to visit our friend we very much liked what we saw and our friend raved about the builder and development. That is actually want put us in the market to start searching for a new home.
So, on the advice of a friend, I contacted the builder directly and was informed that they didn’t care how many homes I owned. As long as I could come up with the 5% down that they required at the time of when we signed our contract and could secure financing they didn’t care about other properties. We were able to more than cover the 5% needed to start the process before selling our home.
Well, we had already made an appointment with this realtor to view existing homes and figured we might as well go to consider the all available options. While we were looking, by the 4th or 5th home, he realized that we weren’t interested in anything but new homes. One of the homes he showed us was next to the development where I first told him we were interested so he suggested going to visit. I’ve now learned that this was a BIG MISTAKE! As we viewed the homes I told the sales person the reason we were there were because of previous buyers to the development. The realtor wasn’t 5 feet away and knew that this was the situation for the beginning.
After viewing and driving away the realtor begin to speak poorly of the builder and the school district. This was strike 3 or 4 and at that point I decide that this was not someone I would want to deal with again. In fact I thought he could tell that this was the situation because we didn’t make plans to speak again as he dropped us off at our current home.
A couple days later we signed a contract with this builder for a new home that would take 10 months to build. I signed a referral fee with the builder for my friend. As expected I didn’t heard anything from this realtor until a couple weeks after we signed the contact. The reason he finally contacted me was because I removed my name from the online mailing list for weekly updates. It was then I informed him that we signed a contact with the new builder. He wished me luck in the process and that was the end.
I found out that he went to the builder and demanded to receive his full commission. When I was informed of this I called the realtor directly and after he insulted me, he said he wouldn’t seek a commission. However, the builder said the he is still pursuing the matter and because I did come in with him that they are legally responsible to give him the money. My seller can’t tell me what law this is and I can’t seem to find anything.
If I fired this person and I DO NOT want him to profit or represent me in any form, why is he still getting paid a large sum of money that he does not deserve? I never signed anything, with the realtor or the builder, stating that I wanted this person to be my realtor.
Thank you in advance