Idaho Real Estate >> ID Real Estate Specialist

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Ordering compliance work to be done - Realtor Beware!

Customer service - this is what we all want to be known for.  Anyone that has been in the business any length of time has ordered work done on a home on behalf of a buyer or seller.  I have done this more times that I can remember.

Well a Realtor friend contacted me last year to assist her with some Spanish speaking buyers.  She found these buyers and then asked for my assistance in writing the offer which I did. The home was inspected and need some extensive compliance work.  My Realtor friend asked me if I knew of a good handyman that could do the work.  I told her I did and gave her the name.  I told her to give the name to the listing agent and have his seller order the work since the work had to be completed prior to closing.

In her haste to get the work ordered she called the handyman herself and ordered the work completed.  Two weeks prior to closing and after the work had been completed an easement issue arose and after a month long extension the sale fell apart because the easement issue could not be resolved.

The handyman called for payment several time and my Realtor friend said to contact the listing agent since it was the sellers responsibility to have the work completed per the contract.  The seller of course said he never ordered the work done and was not paying for it.

Since the total of the work done was less than the limit for small claims court in Idaho the handyman took my Realtor friend to small claims court.   Yes, you are right, the judge ruled in favor of the plaintiff (handyman) and ordered a judgement against my Realtor friend.

My Realtor friend later contacted an attorney about filing a claim against the seller.  Her attorney told her to save her money and learn a valuable lesson which is NEVER ORDER COMPLIANCE WORK.  It does not matter how minimal or how major the work is to be done.

First of all, if you recommend someone and also order the work you have not only "steered" a client towards a contractor but you have created a "contractual verbal agreement" between you and the contractor.

All my friend had to do is give the name of the handyman to the listing agent to give to the seller  and she would have been off the hook.  In her haste to be an aggressive Realtor that got things done she paid a heavy price.

Comments

Hi George,

Nice information for Realtors who might not be aware of this possible problem. I won't oder anything unless it is in writing from the seller.

Posted by Neal Bloom-Realtor ® Assoc.-CRS-Weston FL (Keller Williams Properties) over 2 years ago
Neal...thank you my friend.  Have a wonderful evening.
Posted by George Tallabas - Idaho Real Estate (RE/MAX Advantage) over 2 years ago
George - Good info - We often times want to just be helpful, especially with out of town buyers. Very wise warning!
Posted by Indianapolis Real Estate | Paula Henry (Red Door Real Estate) over 2 years ago
George- very helpful information thanks for talking about it. have a great day
Posted by Dan Tobias - Northridge Real Estate Expert (Discovery Properties) over 2 years ago

Paula - Thank you my friend...I hope all is well.

Dan - You are welcome and have a great evening.

Posted by George Tallabas - Idaho Real Estate (RE/MAX Advantage) over 2 years ago
George:  Very good advice!  I always like to cover my rear and will remember this for future reference!
Posted by Marchel Peterson Spring TX Real Estate E-Pro ABR (Results Realty) over 2 years ago

Thanks Marchel...I was hoping everyone, especially Realtors new to the market would read this and place it in their memory bank.  Have a great evening.

Posted by George Tallabas - Idaho Real Estate (RE/MAX Advantage) over 2 years ago

George,

Great reminder. I am very careful with this myself. I will never order work for anyone.

Jack 

Posted by Clearwater Beach Condos Clearwater Beach Real Estate Homes for Sale -Jack Haydon (Charles Rutenberg Realty) over 2 years ago

Jack...good hearing from you.  Give my best to your lovely wife and have a great evening.

Posted by George Tallabas - Idaho Real Estate (RE/MAX Advantage) over 2 years ago

Geeze George, I live in the land of abscentee owner and estate settlements. If I didn't do the compliance work it wouldn't get done.  Fortunately I haven't been stung.

Posted by Chris Elizabeth Griffith ~ Bonita Springs Fl Real Estate (Downing-Frye Realty, Bonita Springs, FL) over 2 years ago
George...Excellent reminder. Be the source for the source but never be the source. Give them the information on how to get the information!
Posted by Monika McGillicuddy~REALTOR®~ N.H. Real Estate Broker & Trainer (Prudential Verani Realty/Hampstead) over 2 years ago
That is a good example of why you always give multiple referral choices. That way the party selecting them has the obligation not you.
Posted by Danny Smith (DISCOVER TEXAS HOMES) over 2 years ago

Chris - You have been lucky my friend.  If I were you ordering a lot of compliance work I would have each seller give you a limited power of attorney.  This way they are giving your written authority to represent them.  Just my two cents.

Posted by George Tallabas - Idaho Real Estate (RE/MAX Advantage) over 2 years ago

Monika - Thanks for your comment and have a great weekend.

Danny - Thank you and have a great day.

Posted by George Tallabas - Idaho Real Estate (RE/MAX Advantage) over 2 years ago
Hi George, Whew! Thanks for the advice. You are always on top of things.
Posted by Dianne Barody - Pensacola Florida Real Estate (Century 21 AmeriSouth Realty) over 2 years ago
Thank you Diane my friend.  I hope you are doing well. Take care and God bless.
Posted by George Tallabas - Idaho Real Estate (RE/MAX Advantage) over 2 years ago
Hi George, I am doing much better.  I have let go and let God. Thank you for being a wonderful friend
Posted by Dianne Barody - Pensacola Florida Real Estate (Century 21 AmeriSouth Realty) over 2 years ago

Dianne...I am glad you are doing much better and remember you have a friend in Idaho :-)

Posted by George Tallabas - Idaho Real Estate (RE/MAX Advantage) over 2 years ago
George...and I thank you so much for that
Posted by Dianne Barody - Pensacola Florida Real Estate (Century 21 AmeriSouth Realty) over 2 years ago
You are welcome my friend.  Have a wonderful evening.
Posted by George Tallabas - Idaho Real Estate (RE/MAX Advantage) over 2 years ago

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