Diggity said:
as a listing agent, any buyer bringing a TREC contract that has been altered by an attorney would be a huge red flag.
I could see redlining a builder contract, as they tend to be completely one-sided, but TREC contracts are pretty darn fair.
Agilaw said:
"Red Flag"? These last responses don't surprise me. Real estate agents protect turf like no other industry. That's why I think things will be changing.
Agilaw said:
I'm sure you hate all lawyers except the ones you use.
Like I said, real estate agents get extremely defensive when challenged about their industry, commissions, etc. And I'm not speaking as an attorney, I'm speaking as a Broker like you.
Agilaw said:
Deats, this is where I think the industry (which I am a part of too) is going to struggle justifying what has been a fairly standard practice as far as fees. In my earlier example, bringing home $21,000.00 for what are pretty vanilla transactions (or possibly $42.000.00 if the buyer is unrepresented) is going to be a tough pill to swallow for a lot of people going forward. I think all of us who truly are real estate professionals think we bring a ton to the table for our clients, but at what point is it excessive for the services performed?
Agilaw said:
Your ire for attorneys is obvious. Thump your chest at that. Don't know why you steered the topic there. I think it was to get away from people honing in on the commissions charged by most realtors. I think it's great you have a business where you don't charge full rates or you share commissions. Don't you also have another business (dba?) where you charge "normal " rates?
So I'm clear on where you stand on the original topic, do you support brokers charging, let's say, 6% on a standard residential transaction?
My man - you never answered my question either regarding 6%. So like I said, pot meet kettle.Agilaw said:
Oh well. Like I said - 6th grade!
I waited a couple of days to think this over. The premise of this thread is the cost of a residential RE transaction is too great to the parties but you want to add another layer of cost to the transaction. I have been fortunate not to have to engage an attorney often but never would I use the term minimal to describe the cost of using one. As I said I have closed quite a few mortgage loans going back a really long time and I have been involved in very few transactions where either party used an attorney. I can't speak for those that used them but the presence of the TREC contract which I assume is written in such a way as to reflect a number of legal opinions and maybe court cases on its content and structure seems pretty sufficient to me. I certainly can't say that there aren't times where someone might feel the need to add that layer and if they do they should get legal representation. I personally don't think the majority or even close to it would need that but that is just my opinion.Agilaw said:
In a residential transaction that is documented using TREC forms, I would have the attorney review the contract itself and discuss any items of concern or any items that you may desire to be added, altered, or deleted. Since a real estate agent can't alter or add to the contract except in a very limited manner, I would discuss any special provisions that might be desired, etc., and then work those provisions into the documentation. The attorney can also review the title commitment and give opinions on issues that might have popped up in the commitment. Most real estate agents don't really review the commitment much at all. Again, by law, real estate agents can't give opinions or advice on these matters so it is handy to have a real estate attorney give these items a look over and give advice where needed. For the minimal cost on the most expensive transaction in your life, I think it is great for the client and the agent.
Agilaw said:
Yep, keep deflecting. Grown up conversation you can't handle.
Agilaw said:
Why are the realtors not answering the simple question I have asked several times? I'll pose it again, is $42,000.00 in realtor fees fair and reasonable for the sale of a $700,000.00 home?
