Most of the laws affecting real estate transactions were signed into law many decades ago. Specifically the law that says a listing real estate agent must present all offers to their seller client upon receipt of the written offer. But with the multiple purchase offers being presented on many "Short Sale" listings these days, I am finding most listing agents are ignoring the Colorado required contract procedure of presenting all offers to their owner seller client.
The New Contract Procedure seems to be that listing brokers working with a "Short Sale" seller are now electing to take a short cut by simply submitting all contracts to the "Short Sale" lender or lenders and not bothering to involve their seller client. They are waiting weeks or months for the existing lender(s) involved with the transaction to select (or counter and select) the contract they want to work with before actually obtaining a signature from their client (the owner/seller of the property who holds legal title to the property).
This procedure is sure not what the law makers had in mind when real estate contract laws were written. My guess is the Colorado Department of Regularity Agencies would agree that this new procedure is not acceptable. But, real estate brokers are making up their own rules to simplify their work load under our greatly changed real estate market conditions that exist today.
Interestingly enough, I have actually been told "it just won't happen" when I asked a recent listing broker to have his seller sign a purchase offer that I submitted for one of my buyer clients.
I have to admit, I am totally amazed at the attitude and indifference many "Short Sale" real estate listing brokers have toward Colorado contract law and their client obligations.
The point of this blog today might just be to suggest that you select your broker very carefully. Denver Real Estate Brokers are not all created equally and they sure do not all provide the same level of professionalism toward their clients nor toward other real estate brokers. The price to you is frequently very similar from one broker to another, but the level of service and professionalism you receive can be from one extreme to another.
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2 comments:
Thank you so much for posting this blog. I conduct short sales in Massachusetts and our laws are the same. I do not know how agents feel they can "change" the laws but "offer hording" and side stepping the homeowner. The homeowner is the name on the deed NOT the lender. The lender is a contingency. Just as the buyers have a contingency to get financing to purchase by obtaining a mortgage, the sellers need the contingency to release them from a mortgage. This is just basically a reverse financing contingency. Worse than the listing agents are the buyers brokers who actually think it is "okay" and are demanding that the offer get presented to the lender WITHOUT seller approval?!!?!? What purpose is that??
Hi Bobbie,
Thanks for reading my blog and posting your note. I completely agree with each of your comments.
Agents seem to forget that they are licensed to do only one thing...represent ONLY their client in the purchase or sale of real estate. They owe nothing to lenders nor should they be presenting offers to lenders. Their seller client should be deciding on the acceptability of a contract offer. Once the terms of the agreement have been negotiated and agreed to by the buyer and seller, the seller should either submit the executed contract to the lender(s) or authorize the broker to submit that offer to the lender(s).
Best wishes,
Bill Kosena
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