Is this typical of Houston Realtors

[canadian]

We moved to Houston at short notice from Detroit, MI. We did not

have any leads as to new homes, leads etc., We went to a Realtor in

the West University, Houston picked up a map and essentially drove

around the inner loop area in search of new homes. Also did

research online and had a list of new homes. While

driving to one of the homes on our list, we could not find the

exact address even though we were in the vicinity. Called a

telephone number and a guy said he was right there and we were just

in the next street. Found the place. The man introduced himself as

the "builder". We also noticed another lady on the property.

Somehow we did not feel comfortable with the guy. He kept wanting

to see his 'other properties' and to first visit his office. We

went back to the home the next day, only to find out that the man

we met the previous day was a real estate broker! We met the actual builder,

settled on a price, Signed a contract then and there and left. The

real estate called us and we politely told him that we had our

own agent; he nevertheless wanted us to speak to his "boss" who

tried to convince us to come meet him. We had no reason to and

left Houston shortly.

We were sent a copy of the executed contract by the title company.

Everything seemed to be in order. A few days before closing we

realized that we had not filled in our buyer's real estate agent's

name on the contract. We contacted the builder and the title

company. To our surprise the title company informed us that the

realtor information for both buyer and seller's agent has been

filled out already! We asked for a copy of the sheet, and

sure enough it had been filled in with the sleazy guy's firm as

both the buyers and seller's realtor. And they had awarded

themselves 3% commission for being the buyers agent! The page had

been tampered with after the contract was executed, and it had our

initials on it. We promptly informed the title company that we did

not authorize the changes. The builder meanwhile informed us that

he was trying to get the sleazy realtor off representing his

properties and wanted a letter from us about his misrepresentation

to us, which we did. Builder also requested us to file a complaint

with TREk (sp?).

We contacted the Realtor. Only to have him scream at us, actually

threaten us, and again threaten to sue us into bankruptcy should we

go to TREK. It was a miserable experience since we were already on

the road to Houston for the closing. We did not know the real

estate law in TX, and we NEEDED a home! To cut a long story short,

we drove into town Monday morning, and closed on the house at 4:00 PM. Our buyer's agent knew about this Realtor and advised us to go through the closing and did not get his commission. He did not want to tie up the closing by disputing the contract.

The title company's response as to how they would allow the tampering of an executed document was "what goes around comes around, they (sleazy agent) will get their turn".

Is this a normal thing in Texas for Realtors to behave in such

sleazy manner? What kind of fiduciary responsibility does the

Title company have when it blatantly allows a third party to amend

an executed contract? And how exactly does a Realtor go about

'bankrupting' a homeowner who files a legitimate complaint with a

regulatory body?

Am sorry for this long winded post. Just wanted to warn potential out of state home buyers of new homes in Houston.

We have since checked on the BBB and found that the realtor has an

"Unsatisfactory" rating.

[TJones]

First of all, WELCOME TO TEXAS, and HAIF, and I am sorry your first experience has had to be such a bad one. This is definately NOT the norm, where the trouble started was where you left out the buyer's agent info. The unscrupulous seller's agent, got away with it this time. I would still file the complaint. He isn't going to do anything, as I am sure this isn't his first rodeo when it comes to tampering with documents. I would do exactly what you are doing here, but perhaps involve the morally bankrupt agent's name on here. Word of mouth is the best way. I might check with Redscare or any other lawyer on here that might know whether it is slander or not, to mention what happened to you, if it is indeed true, then i don't think there is any damage in doing so.

[jm1fd]

And how exactly does a Realtor go about

'bankrupting' a homeowner who files a legitimate complaint with a

regulatory body?

They don't. He's just trying to scare you into not reporting it. He's going to be in hot water if you complain. Please, do complain.....the fewer 6% leeching sleezebags there are out there, the better.

[jt16]

There is no way he can possibly sue you, unless you have a signed contract with the realtor. Most realtors in Houston are good ethical people. I hope you don't let this experience tarnish your opinion.

You should report them.

[RedScare]

I wouldn't post the dirtbag's name here...much as we'd like to know...however, I would complain to the BBB, the Harris County District Attorney (ask for consumer fraud), the Texas Attorney General, and TREC. You might also contact an attorney who handles DTPA and consumer law, to see if maybe you can sue HIM into bankruptcy. You may be surprised.

You stated that you were sent a copy of the contract. Had the realtor already filled in his name as buyer's agent? I assume you did not sign a buyer's agent disclosure either. Collect all info possible, including names and numbers of the witnesses involved. If I think of anyone else to notify, I'll post it here.

[Pumapayam]

That is bad, my realtor was shady too. When I was able to knock $25K from the asking price of my home, my realtor all of the sudden became useless and unresponsive. I later found out she was trying to close on my home for the same price.

[dalparadise]

The short answer is -- yes, you should go to TREC (Texas Real Estate Commission). The problem is, you're on a builder's contract, not a TREC form. So, actually, your buyer's agent should go to TREC. He or she had an agreement to represent you that is independent of the real estate contract. Most likely, that agreement was for 30 or 60 days. That is, in essence the buyer's agent's claim to his commission. Provided he did his work and got you signed on that agreement of representation, he has a legitimate claim to this deal. TREC can open an investigation and solve this for you, even if the contract itself is outside their regulation. Of course, that assumes the sleaze in question is actually a REALTOR (capital R), meaning he is a member of the NAR and is governed by TREC. I believe that, in any case, the rules of arbitration apply when a single broker represents both seller and buyer. You would have had to sign your understanding of this condition for the contract to go through.

Not to be overly harsh here, but it sounds like your buyer's agent didn't earn his money. Otherwise, you would have included him in the contract. Plus, he'd be much more interested in figuring out what he needed to do to challenge this. With that in mind, what interest do you really have in getting this guy paid? It doesn't end up costing or saving you any money, either way. The sleaze guy will still get his half of the deal, as the seller's agent.

But no -- this is not common practice in Texas real estate. Yes -- the sleaze will get his eventually.

The title company's role in this is to ensure a good transfer of the title and deed and all that entails. They are really not too concerned with the real estate commission, beyond being a holding place for the funds while the transaction is taking place. The fact that this was a builder's contract, not a TREC one probably blurred their role even more, as the Builder was representing both sides of the deal, as far as they were concerned. So, a contract change after the execution was not a big deal in their eyes, as they had "both parties'" agreement to the change.

Edited August 14, 2007 by dalparadise

[HoustonRealtor]

As a REALTOR myself, I say you should report him! People like him make us all look bad. Every profession has it's share of dirtbags, ours just happen to work with the public. If you report him, you might save someone else from having to go through what you went through. Too bad someone didn't report him sooner so that it wouldn't have happened to you in the first place.

Sorry you had such a bad experience and I hope that you are enjoying Houston now.

[gwilson]

Let's not forget HAR. You should report this incident to HAR (www.har.com - Houston Association of Realtors). If he is a Realtor, this could cause him to lose his accreditation and his ability to call himself a Realtor (if he is one).

[canadian]

Gentlefolk,

Thank you so very much for all your response! We moved to Houston after living in the midwest for over 20 years. It was extremely lonesome to be stuck in a system seemingly so alien to what we were used to. I am grateful for this site, and for your replies! We are temporarily back in MI for winding things down, and it feels good to know that what happened was wrong.

TJones: Thanks for the warm welcome!

jm1fd: Thanks to you, and we will complain for sure.

jt16: We did not sign any contract with the sleazy Realtor! Matter of fact he went out of the way to lead us to believe that he is The builder.

RedScare: Thanks for the comprehensive list of places that we can file a complaint! And for advising us not to reveal the slime's name on the BB. We had initialed page 9 of the contract pertaining to buyer and seller agent. There was nothing filled out (buyer/seller agent details). The builder signed the contract, filed it with the title company who mailed us a copy of the contract, with page 9 still unfilled. The Realtor's information was filled in AFTER the contract was executed, some 2 days before we closed on the house.

Could you please tell me what exactly should be the nature of the complaint for it to be effective: Is it the misrepresentation, tampering with a legal document etc.,? Could I name the agent/Realtor etc., or just the company?

dalpardise: I just checked the form. It is a TREC form titled "Promulgated by the Texas Real Estate Commission, New Home Contract". Sadly, the buyers agent that we first met, who gave us the Houston map etc., himself did not sign any paperwork with us! He did not protest about not getting the commission since he did not want to hold up our closing. Our reason to complain is two fold: To insure that the sleazy agent does not continue to misrepresent and intimidate buyers. And to possibly reduce his commission earned by doctoring a contract that he was not party to. We realized that the buyers agent did not do much to earn his commission!

HoustonRealtor: Thank you for the welcome! Yes, after the first couple of days we started enjoying Houston and its rich culture! Love the weather after the biting cold weather of Michigan!

gwilcon: Thank you for telling us about HAR.

Our heartfelt thanks to everyone who responded! It means a lot to us! Thanks.

[gwilson]

This is why everyone in Houston should let ME build their homes. I would go out of my way to make the brokers life miserable.

Just a thought. lol

Edited August 14, 2007 by gwilson

[dalparadise]

Wow -- hard to believe a builder would let a Realtor go so loosely like that on a TREC form. I just assumed the builder was in on the whole deal and was using his own forms to skirt the details. The sleaze really should not act like he did on a TREC form. He could easily lose his license over this.

[HoustonRealtor]

Based on what I've read, I now have a good idea of who the REALTOR in question may be, or at least which firm we're talking about. And if I'm right, he's got a long history of sketchy transactions and outright fraud. Those of us that are aware of what has happened figure that he will get what's coming to him someday. He's so arrogant that he won't even see it coming.

[dalparadise]

Based on what I've read, I now have a good idea of who the REALTOR in question may be, or at least which firm we're talking about. And if I'm right, he's got a long history of sketchy transactions and outright fraud. Those of us that are aware of what has happened figure that he will get what's coming to him someday. He's so arrogant that he won't even see it coming.

I may be thinking the same thing U R, except this was in West University. If I and U R talking about the same firm, I wasn't aware they operated in West U.

[RedScare]

RedScare: Thanks for the comprehensive list of places that we can file a complaint! And for advising us not to reveal the slime's name on the BB. We had initialed page 9 of the contract pertaining to buyer and seller agent. There was nothing filled out (buyer/seller agent details). The builder signed the contract, filed it with the title company who mailed us a copy of the contract, with page 9 still unfilled. The Realtor's information was filled in AFTER the contract was executed, some 2 days before we closed on the house.

Could you please tell me what exactly should be the nature of the complaint for it to be effective: Is it the misrepresentation, tampering with a legal document etc.,? Could I name the agent/Realtor etc., or just the company?

If the realtor filled in the document after the fact, and either backdated the info, or left the perception that the info was filled in at the time the document was dated and signed, it may constitute Forgery and Theft By Deception. Forgery is a felony, and Theft is a felony if the amount stolen exceeds $1500. Forgery is not just signing someone else's name. It is ANY alteration of a document to give false information.

If you have a copy of the contract with blanks, and now have another contract with the blanks filled in, along with witnesses to the transaction, that is a pretty strong case for prosecution. If you'll send me a PM, I will check with the DA's office and get you a contact number. Sometimes, greasing the skids helps convince the DA to act, and even though I am a defense attorney, I will be more than happy to help you out. The actual code sections are: Texas Penal Code 31.03 for Theft, and 32.21 for Forgery. As for who should be prosecuted, let the DA figure it out, but tell them exactly who did what. It may be that the realtor AND his boss are guilty.

It occurred to me that the builder probably has a contract to use this firm as his listing agent. However, that does not negate the crime of forgery. The builder may owe the agent a fee, but NO ONE has the right to change the signed contract. That is where the forgery comes in. And, clearly this realtor was not your buyer's agent, so his actions at a minimum caused harm to your agent.

Don't forget the Attorney General and TREC. They do not have to convict beyond a reasonable doubt.

Good luck, and PM if you have questions.

Edited April 8, 2008 by RedScare

[canadian]

HoustonRealtor, dalparadise: The Realtor/agency in question is not from West U. The Realtor who gave us the map etc., was from West U!

RedScare: Thank you for your comprehensive replies and your offer of help! YGPM!

[HoustonRealtor]

I understood that it wasn't the West U agent that created this mess. The company I am thinking of is not part of a franchise, deals with lots of builders (mostly townhomes) and does lots of advertising and open houses. (That should help narrow down who the potential offender was!)

[TheNiche]

I understood that it wasn't the West U agent that created this mess. The company I am thinking of is not part of a franchise, deals with lots of builders (mostly townhomes) and does lots of advertising and open houses. (That should help narrow down who the potential offender was!)

Is the third letter of first word in their name an 'b', and the third letter of the second word a 'v'?

[dalparadise]

Is the third letter of first word in their name an 'b', and the third letter of the second word a 'v'?

I know I'm thinking of the same one U R.

They've gone by several two-word names and the first word in the name is always the same.

[dalparadise]

If the realtor filled in the document after the fact, and either backdated the info, or left the perception that the info was filled in at the time the document was dated and signed, it may constitute Forgery and Theft By Deception. Forgery is a felony, and Theft is a felony if the amount stolen exceeds $1500. Forgery is not just signing someone else's name. It is ANY alteration of a document to give false information.

If you have a copy of the contract with blanks, and now have another contract with the blanks filled in, along with witnesses to the transaction, that is a pretty strong case for prosecution. If you'll send me a PM, I will check with the DA's office and get you a contact number. Sometimes, greasing the skids helps convince the DA to act, and even though I am a defense attorney, I will be more than happy to help you out. The actual code sections are: Texas Penal Code 31.03 for Theft, and 32.21 for Forgery. As for who should be prosecuted, let the DA figure it out, but tell them exactly who did what. It may be that the realtor AND his boss are guilty.

It occurred to me that the builder probably has a contract to use this firm as his listing agent. However, that does not negate the crime of forgery. The builder may owe the agent a fee, but NO ONE has the right to change the signed contract. That is where the forgery comes in. And, clearly this realtor was not your buyer's agent, so his actions at a minimum caused harm to your agent.

Don't forget the Attorney General and TREC. They do not have to convict beyond a reasonable doubt.

Good luck, and PM if you have questions.

Dave

Assuming he has a salesperson's license, the Realtor is acting on behalf of his sponsoring broker, right? So, the broker is probably the one on the hook for the criminal charges. The Realtor supposedly can't do anything (though, in practice, this is rarely the case) without his broker's say-so. So, with that in mind, he'd be facing action from TREC or TAR. A licensed real estate salesperson can't even do business in Texas in any capacity without broker sponsorship.

Is this assumption accurate?

[RedScare]

As the schmuck's defense attorney, I would certainly make that argument. However, it is a case by case assessment. If the DA can prove that the realtor filled in the paperwork, KNOWING it was a forgery, he can be held criminally liable. If they can show that he did it at the broker's direction, they may BOTH be liable as co-conspirators. Remember, my assessment is based on criminal law, not TREC regulations. Any person that knowingly alters documents to defraud another is guilty of forgery, regardless of TREC. If they know it is illegal, they must decline the boss' orders, just as a soldier must disobey his commander's unlawful order.

The one with a better alibi is actually the broker, who could say he did not know what the realtor was doing. But, if there is no buyers agent paperwork, he should know also.

[HoustonRealtor]

It looks as though we are on the same page as to who the likely offending company is. It wouldn't surprise me if it was the owner of the company that actually created this mess. Although he is the owner, he is not the broker. Essentially that means that he is sponsored by one of his employees. He has quite a (bad) reputation in his market area.

[dalparadise]

It looks as though we are on the same page as to who the likely offending company is. It wouldn't surprise me if it was the owner of the company that actually created this mess. Although he is the owner, he is not the broker. Essentially that means that he is sponsored by one of his employees. He has quite a (bad) reputation in his market area.

Yes, it appears V-R talking about ze same person.

Spend enough time following this business and U-L hear something bad about this particular firm.

Edited August 16, 2007 by dalparadise

[dalparadise]

Hold on -- I just thought of something.

Merely putting the contract in title is not executing it. In fact, now that I think of it, it isn't at all unusual to change a contract at a title company. All that's happening there is the investigation of the title to the property and everything necessary for the sale of it, like the taxes, liens, property lines, etc.

It's at the closing that the it all becomes final, right? Until that time, the contract is a work in progress and can be ammended as necessary. Now, that doesn't make CHANGING anything on the contract right, without a signed amendment. But, adding information in spaces left blank is almost expected in many of these things -- particularl when the Realtor who drew up the contract is lax in his details and hurriedly puts the contract together.

In any case -- once again, if the buyer's agent had been earning his commission, he would have assisted his customer in filling out this contract. I say it's his own fault his name isn't on the form.

It doesn't make it right what was done to that contract, but they are written very loosely because they are mostly not written up by lawyers. Therefor, I think there's a general acceptance of these kinds of incidents in this business. Still, it doesn't make it right...

[canadian]

Just curious, how come in TREC website there is no information regarding this firm or its chief? Are they a DBA company with an alias registered with TREC?

[canadian]

Hold on -- I just thought of something.

It's at the closing that the it all becomes final, right? Until that time, the contract is a work in progress and can be ammended as necessary. Now, that doesn't make CHANGING anything on the contract right, without a signed amendment. But, adding information in spaces left blank is almost expected in many of these things -- particularl when the Realtor who drew up the contract is lax in his details and hurriedly puts the contract together.

Herein lies the problem. The only people who drew up the contract was the builder and us. The builder then filed it with the title company who snail mailed a copy of the contract which still showed the sheet blank with the builders and my initials at the bottom. Only one of us had signed the contract and initialled each sheet from the buyers side. The tampered sheet showed both the buyers agent (intermediary), and the seller's agent information filled out by someone, with a stipulation that 3% of commission will be payed to the buyers agent. We refused to endorse this doctored sheet with my initials during the closing.

I agree with you that the contract may be a work in progress. However, what right does a person who was never a party to the contract to go ahead make changes, passing off as a buyers agent, when he is not authorized to do so, and did not have any paperwork stating that he represents the buyer?

In any case -- once again, if the buyer's agent had been earning his commission, he would have assisted his customer in filling out this contract. I say it's his own fault his name isn't on the form.

I couln't agree with you more on this!

So I take it that the boys get off free and clear since it is a general practice for Realtors to look through documents in the possession of a title company and just include their names as buyers/sellers agents if they are left blank?

[HoustonRealtor]

Just curious, how come in TREC website there is no information regarding this firm or its chief? Are they a DBA company with an alias registered with TREC?

Let's say you were going on the internet and wanted to find their website. You would type www. That alone will be enough to find what you are looking for. Also, the person a couple of us are referring to goes by a shortened version of his name.

Short of providing a link, I think I've given you what you need to look it up.

[HoustonRealtor]

I couln't agree with you more on this!

So I take it that the boys get off free and clear since it is a general practice for Realtors to look through documents in the possession of a title company and just include their names as buyers/sellers agents if they are left blank?

Legally, ANY change to the contract should be initialed by all buyers and all sellers. As long as you have copies of the contract without the information filled in, you should be able to prove that the change was made after the fact.

My only concern is that the agent can argue that he was the procuring cause of the sale since he spoke with you and met you at the property prior to you executing the contract. I could see that argument working and I don't necessarily have a problem with it. What I do have a problem with is him changing the contract and then threatening you. It makes all REALTORS look bad. Click here for info about procuing cause: http://homebuying.about.com/od/realestatea...curingcause.htm

[dalparadise]

Herein lies the problem. The only people who drew up the contract was the builder and us. The builder then filed it with the title company who snail mailed a copy of the contract which still showed the sheet blank with the builders and my initials at the bottom. Only one of us had signed the contract and initialled each sheet from the buyers side. The tampered sheet showed both the buyers agent (intermediary), and the seller's agent information filled out by someone, with a stipulation that 3% of commission will be payed to the buyers agent. We refused to endorse this doctored sheet with my initials during the closing.

I agree with you that the contract may be a work in progress. However, what right does a person who was never a party to the contract to go ahead make changes, passing off as a buyers agent, when he is not authorized to do so, and did not have any paperwork stating that he represents the buyer?

I couln't agree with you more on this!

So I take it that the boys get off free and clear since it is a general practice for Realtors to look through documents in the possession of a title company and just include their names as buyers/sellers agents if they are left blank?

Bingo. There's the problem. Only a licensed Realtor may draw up a TREC contract. If the builder did it and he isn't a Realtor, it's not a legal contract.

As far as the intermediary designation -- that is exactly the kind of change that happens in a title company, when it comes to light thaty the buyer's and seller's agents are represented by the same broker agent. The Realtor was trying to pull a fast one by "updating" the contract with new information, once he "discovered" you had not filled in the buyer's agent information.

My guess is that the builder did not enter this contract into title, but rather sent it to the Realtor to do it for him. The opportunistic Realtor then grabbed an extra 3% when he saw the blank left for the buyer's agent. In any case, there really are no damages to the buyer. It's unscrupulous, but skirts regulations, as far as the intermediary designation is concerned. The contract being drawn up by the builder is another issue.

By the way -- even though you may not have initialed the buyer's agent change on the contract, I am certain that you signed an intermediary designation form, or else the contract could not have closed. In that, you agreed to allow the broker to designate your agent.

[RedScare]

Bingo. There's the problem. Only a licensed Realtor may draw up a TREC contract. If the builder did it and he isn't a Realtor, it's not a legal contract.

Never heard that law before. Care to explain why it is not a "legal contract"?Here is the disclaimer on TREC's website:

Notice Regarding Contract Forms As public records, the contract forms adopted by the Texas Real Estate Commission are available to any person. However, TREC contract forms are intended for use only by licensed real estate brokers or salespersons who are trained in their correct use. Mistakes in the use of a form may result in financial loss or a contract which is unenforceable. If you are obtaining the forms for possible use in a real estate transaction, you should contact a real estate licensee or an attorney for assistance. TREC cannot provide legal advice to the public on private contractual matters. TREC does not promulgate listing or buyer representation agreements, property management contracts, forms for commercial property, or residential leases (other than temporary residential leases used in connection with a sale). Contact your attorney or a trade association for such forms.

Note that it says the forms are available to ANY PERSON.However, since TREC does not give out legal advice, they advise getting help from a qualified person...big difference from what you claimed. Edited August 16, 2007 by RedScare