Real Estate Agent Disputes: How to Avoid Them
Saturday, June 25, 2011 at 4:10PM 06.15.11
By: Stephen J. Nash
Nash Law Firm PLLC
nash@nash-law.com
Rarely does a day go by where I do not get at least one phone call relating to a dispute between agents. Sometimes the dispute is between agents of different companies, sometimes the dispute is between agents in the same company. In the end, many of them are extremely difficult to resolve because there was no clear written agreement to refer to. Without a written agreement it is very difficult to determine what the agents intended.
In the normal dispute, both sides believe that they are correct (and, of course, both say that the other side is lying). Both sides argue that they are simply following their agreement. Unfortunately, from my viewpoint, I don’t know what the agreement was because I wasn’t there and have nothing in writing to guide me. As a result, before we can get to the issue of how to follow the agreement, we first must figure out what the agreement was.
Disputes are hard enough to resolve without needlessly adding issues to fight over. Why risk a fight over what the agreement was when a simple written agreement would have most likely avoided the issue and maybe even headed off the entire dispute? Every time there is a dispute over an oral agreement, the person making the decision can never be sure that they made the correct decision. They make the best decision they can but they were not there when the agreement was entered into and without a written agreement it follow they can only listen to both agents and make their best guess. Again, the easiest way to avoid this arbitrary decision is to make sure that your agreements are in writing.
The reasons I most often hear for not putting their agreements in writing are as follows:
1). I was just too busy (Just wait till you see how much time you spend fighting),
2). It wasn’t that big of a deal (Then why are you fighting about it),
3). We both know what the agreement is (Unfortunately, I don’t and you both are giving me an entirely different version of the agreement), and
4). Why should we put our agreement in writing when nobody else does (Ultimately, you are doing it for your own protection not because everyone else is doing it).
The bottom line is that no matter what your reason is for not having a written agreement, if you don’t take the time and make the effort to put your agreement in writing, pray that you never have to enforce it. If you do end up in a dispute over your unwritten agreement, remember that you chose to take that risk and must now live with the consequences of that choice – a needless fight, a time consuming fight and the possibility that you can lose that fight. All consequences that could have been avoided with a simple written agreement.
In the next issue I will discuss what needs to be included in your written agreement.
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NOTICE The foregoing is not intended to constitute legal advice for any specific circumstance, but is intended to reflect broadly applicable principles, under Minnesota law, relevant to a typical situation. Each set of facts and each contract is, or can be unique; the unique facts and specific language of the contract may require a different legal analysis and may result in a different outcome. Before proceeding in reliance upon this or any other general description of law, consult with an attorney competent in the field of practice relevant to your situation. Copyright 2011 Nash Law Firm |