Granny Carol was kind enough to make this available for a re-blog. I learned something new today. I am looking forward to having a conversation with you all about this subject.
Granny is slightly upset about this...you could say that my normal pleasant personality has fully slipped off a slippery slope and fallen into the deep end...again!
You know, in my years of real estate practice, I have met some mighty fine folks who work in the real estate industry. In fact, I'd have to say that the majority of other agents that I have had interactions with have been decent, hardworking and ethical individuals.
And then...well...every now and then you run into a stinker like this fellow I'm about to introduce you to.
Let's refer to him as "Agent Scoundrel!"
By the way, I came upon this particular person who works as an agent in my community, not because I had a transaction with him, but I did just complete a transaction with another agent who was on the receiving end of all of this nastiness from Agent Scoundrel who, I think you'll agree...certainly lives up to his name!
Agent Scoundrel's a seasoned agent who is also known by a few folks as a Prima Donna, his way or the highway kind of fellow...need I say more?
I recently closed and escrow on a home where I represented the buyer. The seller's agent was a lovely woman that we will refer to as "Agent Amiable." I had never had a previous transaction with Agent Amiable, she was a delightful and considerate person to work with.
Agent Amiable's sellers were also in the middle of purchasing a home with a close concurrent, Agent Amiable represented them in the purchase of their new home in addition to the sale of thier current home.
Agent Scoundrel represented the sellers of the property that Agent Amiable's sellers were purchasing, thus Agent Amiable's sellers were also Agent Amiable's buyers...oye...Who's on first?
My transaction was a perfect breeze, complication free. In fact, I would say that during this process, the sellers and the buyers became very friendly, you can't imagine a more flawless and happily pleasant escrow process.
However, without being told exactly what was happening, (It wasn't really our business anyway) we were quite aware that the sellers other transaction (Where they were the buyers of their new home) was anything but pleasant! Several times during my own transaction, I offered to assist Agent Amiable with what seemed like a draining and complicated transaction on the other end. (Once a mentor, always a mentor...or meddler?) However, she never wanted to talk about any of the particulars. Only telling me that since Agent Scoundrel was a big producer in her office, she'd not make any waves as to his nasty behavior.
Unfortunately, as in many inner office agent-conflicts, management often sides with the top producer, rather than the one who is actually right...we all know where the buck stops!
I might add that Agent Scoundrel and Agent Amiable happen to have their licenses at the same brokerage know as "Big Blue!" I hang mine with "Big Red White and Blue" the one with the balloon logo...thankfully!
Still...other than a few comments made by Agent Amiable's clients, none of us knew any specific particulars with regards to the other transaction until after our escrow was closed, my buyers allowed the sellers to lease back the property one week as they intended on doing some painting and remodeling at their new home. As I said before, my transaction was without conflicts, all parties became friendly and helpful to one another...the way it's supposed to be!
The properties were scheduled to close concurrent, my escrow closed and then the big bang...the other escrow didn't close. Well...it was only delayed by a day or so...that's when we finally heard what had been going on.
Evidently, Agent Scoundrel had secured his own buyer for his listing, meaning that he would have doubled ended the deal (Expensive Property, twice the commission...half the ethics?) Agent Scoundrel was NOT a happy camper because his clients had just accepted the offer from Agent Amiable's buyers. Some may say that this sort of set the tone for things to come!
Of course, nobody knew that Agent Scoundrel had a buyer in his back pocket, perhaps he should have told his sellers not to accept any offer until his own buyer could put together their offer. Still...it left Agent Scoundrel with a bad taste in his mouth.
Poor Agent Scoundrel...don't you just hurt for the guy?
Unfortunately, Agent Scoundrel (Or his sellers...who really knows?) did something pretty darn awful when they signed the acceptance on the contract from Agent Amiable's buyer.
There is a big lesson for everyone to learn from this...and the main reason that I check and double check when an offer has been signed and returned.
As most folks know, a buyer writes an offer to purchase. If the seller does not like something in the offer, they don't change the original offer; they institute a counter offer with any changes. You cant change an offer once it has been signed by a seller, and certainly NOT unless it is brought to the attention of all parties involved and initialed by all parties. What happened is that Agent Scoundrel made a small change to the offer and then told his sellers to sign the offer and returned the offer to Agent Amiable...with no mention to the change that he or his sellers had made to the original contract. Of course, Agent Amiable had a copy of the original contract that had been signed by the buyers; clearly that copy does NOT have the other verbiage that was written in by the sellers or the seller's agent...Agent Scoundrel!
Unfortunately, Agent Amiable verified that each page had been signed and then sent the paperwork to escrow to open the escrow process. Even thought you can't change the original offer, please everyone double check your contracts to be certain that no Agent Scoundrel in your own area does this to you. I know you don't expect it, but there are horrible people in the world and some of them (Highly unlikely...I hope!) but some of them may work in your community...worse yet...even in your own office. So please, check and double-check when an offer has been accepted that it has not been changed in any manner!
Agent Amiable didn't realize that Agent Scoundrel, a very experienced agent from her OWN OFFICE had deliberately made changes to the original contract that she had submitted to him earlier...and then deliberately not told her about his changes.
This property is a small acreage about 1.5 hours outside of Los Angeles with a spacious luxury home. However, being rural (Rural for California) the property had a septic tank, rather than a city sewer connection. There is a box that Agent Amiable checked that stated that the seller would perform a customary septic inspection. Even though any changes to the buyers signed offer should have come on a separate page (A counter) what happened is that Agent Scoundrel just wrote in that area that repairs would be limited to $500. Then he had his sellers sign the contract, (But no initials by any changes in the contract) never mentioned to the buyers agent that he had changed the buyers offer in any manner other than his clients had dated and signed all the pages.
Okay...it's true that Agent Amiable should have caught this devious act, I think that it's something so contractually unethical for anyone to change a contract unilaterally and then not mention it to the other agent, pretty much amounts to an intentional deception AT THE VERY LEAST and certainly not in the spirit of cooperation. This is not something that most folks would anticipate from another agent who supposedly is experienced and claims to be ethical. And certainly, not from someone in your own office!
During the course of this entire escrow process, Agent Scoundrel never bothered bringing the subject of the contractual change up to Agent Amiable. And I will be the first one to agree that Agent Amiable bears a certain amount of responsibility for NOT catching this act of contractual terrorism! Still...Agent Scoundrel...at the very least should be taken out behind the barn and beaten!
One day before closing escrow is when, after repeated requests from Agent Amiable to Agent Scoundrel to provide the Septic Inspection Report, that is when it was discovered that the Inspection hadn't even been ordered! An inspection was quickly ordered by the sellers, to come back with a surprising $18,000 in suggested replacement of septic system!
The buyers, who had sold their home to my buyers and closed escrow already AND were leasing back for a week, had fully packed, signed loan docs and then signed off on all contingencies...never aware that Agent Scoundrel had put that $500 repair cap on the Septic Inspection. Almost like he knew something was wrong...or like his clients told him that something was wrong and tried to hide it. Even if that's not true, it's pretty suspect at this point!
Again...I know that Agent Amiable missed the mark on catching this devious deed by Agent Scoundrel...and in a court of law, they will probably find Agent Amiable partly responsible for not catching this contractual change.
My question is this...what should be done with Agent Scoundrel?
More importantly...if you shoot a rotten agent...do you really lose your library card privileges...permanently?
Love, Granny
I'm curious as to the legality of the "hand written ammendment" if it had no initials, date and time by both parties. I can see a court making the sellers fix the septic all $18,000. worth. On the other hand I'm wondering why a septic system of ANY kind costs that much. Starting from scratch mine was FAR LESS than that.
Tammy, you hit the nail on the noggin. Very costly. Wondering about contamination and the level of possible environmental damage in addition to replacement and repair costs myself. I was floored by this and couldn't wait to re-blog it. I am looking forward to learning something new today.
Though it is lengthy, there are still details missing, but here goes: 1. The change was not acknowledged by the Buyers therefore is not valid. 2. Why did the septic fail? What did the seller's property disclosure say about it? Have local septic pumping companies, or "rotor rooter" type companies been called to see about past service calls?, 3. Are the sellers pointing fingers at the agent? They must have been given a copy of the contract when they signed it ... is the change on their copy? 4. Amiable may have some exposure, but not to the extent that Scoundrel has - he changed a contract above the parties' signatures without initials or acknowledgement. What provisions for enforcement are there, i.e.- mediation, arbitration or litigation. Mediation could get some immediate resolution. 5. I would file an ethics grievance against him. 6. The sellers/buyers could file a complaint with the division of real estate.
This is very serious. I look at it as a character flaw. We don't allow "gotcha" real estate any more and it shouldn't be tolerated. Their mutual broker should be very concerned about this practice regardless of the relative production of the agents. If he is making his sales by cheating and intimidation then he won't last long and the ensuing lawsuits won't be worth any income he brings to the office. Agents like this should look for another line of work. Professional agents have integrity and are there to serve the client, not themselves. This can result in a suit that will cost his sellers dearly in money and emotion. Please keep us informed on how this progresses between the agents, their broker, and the seller and buyer.
Interesting post. Of course Agent Amiable should have reviewed the signed contract as soon as she received it back, who doesn't do that? It is part of our responsibilities.
However that is neither here nor there. Now I am not an attorney, nor do I play one on tv, but the fact that Agent Scoundrel added language and had his seller's initialize the changes makes no difference, for it is only valid if the buyer initialize it also. Which is why on all contracts any changes/cross outs etc. etc. must be initialed by ALL PARTIES! Doesn't everyone know this?
I would think an attorney would have a field day with this one
The buyers never initialed the change and from what I read neither did the sellers. The change was made by someone and the sellers signed the contract, just as if it was meant to be hidden, which it probably was! The fact that the buyers never initialed the contract would be enough, I think, to make the contract invalid, or at the very least, the septic repairs will end up being the sole responsibility of the seller's or, if there is justice, agent scoundrel.
Tammy: One purpose the replacement is so costly is because this is in California, the land of ultra expensive properties...even the lowest paid trades folks have to be able to afford their giant mortgage payments. I also believe that the property (I have not seen the property myself) is on sloping ground, which makes everything more expensive and time consuming. The cost for replacement here is not out of line with other expenses, more importantly, I feel that the fact that this septic needs replacement, as per the new septic inspection and recommendation, clearly suggests that the sellers must have had previous issues with the functionality of the system...also no issues were noted in the Transfer Disclosure Statement by the sellers or the sellers agent, aka Agent Scoundrel. The entire incident is disgusting on every level imaginable...and then some.
Carolyn: Wow, after all these years living in California, I thought it was a car-hijacker that might get me, I never realized it might be a BLOG hijacker! Thank you...you are a dear!
Jim: Yes, there are numerous questions to be answered regarding this situation. Most importantly, the sellers disclosed nothing at all with regards to the septic issues; it is my understanding that they also did not disclose another issue that is far less costly, but still...a fairly large issue that was not disclosed...on top of the nondisclosure of the obvious septic failure. It is my personal opinion (remember, this is just my opinion) that the sellers may have been aware that agent Scoundrel wrote in the changes in the contract regarding possible septic repairs. To say the least it is highly suspicious to write in something like that, never mention it to anyone else in any manner, including in the transfer disclosure statement or the agent visual inspection, and then NOT have the septic inspection complete until after close of escrow. The buyers had also sold their home and closed escrow, thus the pressure was on for them to sign the final paperwork as they had to move out of their former home after it closed escrow. I believe that there is quite a messy lawsuit that could be made out of this incident, at the same time, my experience with the buyers (As sellers of their previous home) tells me that they will probably settle in mediation for replacement of the system. They are not blood thirsty folks, those of lesser character might very well go for the juggler over this situation...in my opinion, it's a fairly simple call to make judgment on the buyers behalf. Still...they just aren't the type to be malicious (Unlike other unnamed folks involved) and they are happy and love their new home...which is pretty incredible...I've seen the photos, great property, even with the septic situation lurking in the background.
If I were the broker in charge of the office where agent Scoundrel hung his license, I would encourage him to find another brokerage to hang his license, irregardless of his high level of production...I wouldn't want any possible further exposure from his future antics...me-thinks his stripes have been fully exposed!
Love, Granny...who is STILL stunned and disgusted by the very thought of this happening...especially in the unsteady marketplace where real estate currently resides.
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