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Loreena Yeo - Broker|Realtor(R) of www.Frisco-TX-Homes.com (214) 783-2210

Implied Agency, Procuring Cause and An Important Home Buyer's Education

 

An implied agency in Texas is a broker and buyer relationship where there is no express agreement for broker to act as agent for the buyer. The actions, conversations and activities may lead to an "implied agency". However, the buyer may have a different set expectations from that meeting. than the broker performing the service. 

"We saw a house on the internet and called the broker who listed it to set up an appointment to see it. The listing agent sent another agent to show. We have not engaged in a buyer's representation. After showing the house, the agent mention that he would write up the offer for us. We are interested in the house but we want to use a different agent to represent us".

When a broker/ agent have not discuss and confirm the relationship and representation at the first meeting, the unrepresented buyer may assume that the broker/ agent is just out there to merely show houses to him/ her. The "bigger" issue of the unrepresented buyer will then be working for the Seller - whether or not, the broker/ agent is the listing broker/ agent. Thus, anything that the buyer says to the broker/ agent The "bigger" issue of the unrepresented buyer will then be working for the Seller - whether or not, the broker/ agent is the listing broker/ agent. Thus, anything that the buyer says to the broker/ agent could potential be too much information that may hurt the intention of purchasing the property.

In an "implied" agency relationship, this relationship is successful when both parties are in agreement to enter an "implied agency" relationship. However, more often than not, buyers simply want access to the property and not necessarily be in a business relationship with the broker/ agent who showed the property.

Implied agency or Buyer's agency is one of the clarifications needed in the example above. However, when the Buyer is interested with the property and wants to purchase the property now has a procuring cause issue. Procuring Cause is how a broker/ agent gets paid. Thus, if this agency relationship is not clearly defined at the beginning, it can cause Procuring cause commission disputes among agents. Disputes arise when "showing" agents think that they are the procuring cause to the sale while procuring cause is clearly defined as the agent who ultimately brought the buyer that cause the sale of the home, presented the offer, successfully negotiated the acceptance of the offer hence earned the commission he/she deserves.

Most consumers do not understand how brokers are paid. Hence, it is the agent's duty to explain. Buyers do not know that they open themselves to a can of worms when they speak to agents in which they have no desire to get in a business relationship with. The best way to protect yourself against procuring cause is:

  • Get into an implied agency specifically discussing buyer representation
  • Sign a buyer's agent agreement
  • Do not ask the listing agent to show you the property
  • Do not let another agent that you have no desire to get in business with to show you properties

 

I do not like implied agency and the problems it may cause. Upfront disclosures are needed to clarify the relationship so that there is no mis-communication or mis-representation or there lack of. The best relationship is affirmed in writing with a Buyer Representation agreement.

Some consumers (including brokers and agents) find it difficult to get into a signed buyer's representation agreement. They (both parties) feel like they are getting themselves tied down in a committed relationship without knowing each other. One way to resolve this issue is for both parties to sign a one-day buyer's representation agreement or representation based on the properties that were shown that day. That way, no parties are obligated to each other should that relationship not work out.

 

 

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Contact:


Loreena Yeo
Realtor®/ Broker of 3:16 team REALTY
(214) 783-2210
loreena@loreenayeo.com

 

Super-serving Frisco, Plano, Dallas, McKinney, Allen, Little Elm, Prosper, Celina, Richardson, Dallas M-Streets, Dallas White Rock Lake area communities and other surrounding areas.

Copyright © 2009 by Loreena Yeo (3:16 team REALTY)
Originally Posted on Implied Agency, Procuring Cause and An Important Home Buyer's Education

Forget that Outta Box Creative Thinking, How About As Simple As Answering That Phone Call?

Barry Owen wrote this post, Out of the Box thinking Creates a Level of Service Your clients will rave about. In his blog, he offered a variety of knock-the-socks-off out of the box strategies. Some done more often than others, some pretty creative.

Here's my take on the subject:

Our clients may not necessarily remember what you did to market his or her home. In the end, I believe they will remember if you were responsive to their questions and concerns, if you returned their phone calls in a timely manner.

Now, that's a secret.
(Insert sarcasm here)

I say, if you want to deliver a Level of Service your clients will rave about, Pick up your phone when it rings or if you have to return the call, do it in the next 10 minutes. Now, that's something to remember. Something they will tell their friends about. They wont remember Marketing Plan A from B.

Sometimes, we don't need out of the box thinking. We just need to do what's right. Get back to basics. Answer that darn phone! Even if you are on an appointment with someone, simply excuse yourself for 1 minute, tell the caller that you will return his/ her call in X hours. I let my clients know that I take other calls when I am with them. When it's their turn, they know they will get to speak to me also. All my clients are important.

A human voice is important to hear.

There's nothing more frustrating than leaving a message on a voice message especially with technology working for you. "Wait while I connect you to the party you're calling..." Why cant I just leave a message if you didn't answer. Why let me sit through all the connect, and disconnect? Okay, that's an unintended rant. But you get what I mean.

We always crack our head to do this social media right, create unforgettable moments with "stuff". I think the answer lies within simple basic stuff. Answer that darn phone.

 

If you could answer your phone, or reply your client's email as soon as you receive it, now that's something to rave about. Dont you think so?

 

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All contents are original. Consider subscribing to my blog for more real estate commentaries.

Subscribe via Email if you are not an Active Rain member here.

Contact:


Loreena Yeo
Realtor®/ Broker of 3:16 team REALTY
(214) 783-2210
loreena@loreenayeo.com

Super-serving Frisco, Plano, Dallas, McKinney, Allen, Little Elm, Prosper, Celina, Richardson, Dallas M-Streets, Dallas White Rock Lake area communities and other surrounding areas.

Copyright © 2009 by Loreena Yeo (3:16 team REALTY)
Forget that Outta Box Creative Thinking, How About As Simple As Answering That Phone Call?

Home Buyer Tax Credit Questions & Answers


First Time Home Buyer & Repeat Buyer Tax Credit
QUESTIONS & ANSWERS Explained

 

All new first time home buyer and repeat buyer Tax Credit are effective immediately. It does not have to occur on December 1 2009 in order to qualify. All closings occurred on November 6 2009 qualifies for the new & improved first time home buyer and repeat buyer tax credit.

First Time Home Buyers

The $8,000 first time home buyer tax credit applies to home buyers that purchase homes at $80,000 or more. Anything less than $80,000, the tax credit that applies is 10% of the purchase price.

Repeat Buyers

  • There is NO PROVISION that stipulates that the Repeat Buyer must purchase a home more expensive than the one sold.
  • There is NO PROVISION that says the Repeat Buyer must sell the home before the new one close.
  • Qualifying sale of existing principal residence must be any five-consecutive year period during the eight-year period that ended on the date the replacement home is purchased.

New Income Limits

  • For home purchases on or after November 6 2009, new income limits raised to Modified Adjusted Gross Income of $125,000 for a full refund and phase out adjustment up to $145,000 for single taxpayer.
  • Modified Adjusted Gross Income of $225,000 and phase out adjustment up to $245,000 for married taxpayers.

Purchase by a Dependent

There was no age limitation on the original bill and amended for the November Tax Credit. Taxpayer must be at least 18 years old to qualify for the credit. For married taxpayers, the taxpayer shall be treated as meeting the age requirement if the taxpayer or spouse meets the age requirement.

Repeat Buyers

There is no criteria that home buyers must "move up" in house. Only that they lived in the house for the past 5 out of 8 years as a primary residence. The new purchase price must not exceed $800,000.

Date of Enactment = November 6 2009.

For 2008 Purchases

For home purchases in 2008, the tax credit works as if it is a 15-year no-interest loan up to $7,5000. The total amount of tax credit equals 10% of home purchase price.

For 2009 Purchases

For home purchases in 2009, the tax credit is 10% of purchase price to a maximum of $8,000. On or after November 6 2009, repeat buyers qualify also.

Tax credit:

  • Applies to taxpayer's principal residence
  • Reduces taxpayer's tax bill, dollar for dollar
  • Is fully refundable which means if the taxpayer is eligible and owes no tax, taxpayer will receive a full refund.

When to File For This Tax Credit

First time home buyers who purchase a home in 2009 can claim the tax credit on 2008 tax return by filing for an amended return or 2009 tax return. Credit may not be claimed before closing.

The credit is claimed using Form 5405 with an original or amended tax refund.

To file an amended tax return, use Form 1040X.

 

 

FEATURE Jan 1 – November 30, 2009
Rules as enacted February 2009
December 1 – April 30, 2010
Rules as enacted November 2009
First-time Buyer – Amount of Credit $8000 ($4000 married filing separate) $8000 ($4000 married filing separate)
First-time Buyer – Definition for Eligibility May not have had an interest in a principal residence for 3 years prior to purchase  -Same-
Current Homeowner – Amount of Credit No Provision $6500 ($3250 married filing separate)
Effective Date – Current Owner No Provision Date of Enactment
Current Homeowner – Definition for Eligibility No Provision Must have used the home sold or being sold as a principal residence consecutively for 5 of the previous 8 years
Termination of Credit Purchases after November 30, 2009.(Becomes April 30, 2010 on Date of Enactment.) Purchases after April 30, 2010
Binding Contract Rule  None Written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until July 1, 2010 to close
Income Limits $75,000 – single, $150,000 – married, Additional $20,000 phase out $125,000 – single, $225,000 – married,
Additional $20,000 phase out
Limitation on Cost of Purchased Home None $800,000
Purchase by a Dependent No Provision Ineligible
Antifraud Rule None Purchaser must attach documentation of purchase to tax return

 

 

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All contents are original. Consider subscribing to my blog for more real estate commentaries.

Subscribe via Email if you are not an Active Rain member here.

Contact:


Loreena Yeo
Realtor®/ Broker of 3:16 team REALTY
(214) 783-2210
loreena@loreenayeo.com

Super-serving Frisco, Plano, Dallas, McKinney, Allen, Little Elm, Prosper, Celina, Richardson, Dallas M-Streets, Dallas White Rock Lake area communities and other surrounding areas.

Copyright © 2009 by Loreena Yeo (3:16 team REALTY)
Originally Posted on Home Buyer Tax Credit Extension

Train up a child in the way he must go

It's my heart's desire that I bring my son up to know the Lord and to love Him with all of his heart. To want to serve Him, please Him and follow Him.

Today, I'm able to witness a young servant's heart. We (my husband and I) want to start young to build a heart full of others.

It is my duty to bring him up well everyday of my life.

As a mother, I am truly proud of my son for cleaning tables and chairs at our Hope Cafe every week (2-year old style). But it's always an awesome start. After his morning milk, he walks to the kitchen to help me put silverware back into the cabinets. He sits with me in the morning as he writes and colors while I check my morning emails. Then, we play and have breakfast.

Never underestimate what you can teach a child, even at 2-years old.

 

Scripture of the Week:

Train a child in the way he should go, and when he is old he will not turn from it.
Proverbs 22:6



A young servant's heart from mikey yeo on Vimeo.

God First posts every SundayI begin my week here on Active Rain with my God First posts, written every Sunday once a week. My promise to you is that the messages I share will be day-to-day related, often times related to real estate. If these topics are important to you also, I'd love for you to subscribe to my blog.

 

 

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All contents are original. Consider subscribing to my blog for more real estate commentaries.

Subscribe via Email if you are not an Active Rain member here.

Contact:


Loreena Yeo
Realtor®/ Broker of 3:16 team REALTY
(214) 783-2210
loreena@loreenayeo.com

Super-serving Frisco, Plano, Dallas, McKinney, Allen, Little Elm, Prosper, Celina, Richardson, Dallas M-Streets, Dallas White Rock Lake area communities and other surrounding areas.

Copyright © 2009 by Loreena Yeo (3:16 team REALTY).
Train up a child in the way he must go

First Time Home Buyers Go Through a Stressful Time: Be Empathizing

Serving first time home buyers have been one of the highlights of my career. An agent who serves first time home buyers need to be able to fully grasp the emotional roller coaster our clients go through. We handle contracts everyday. We take clients from house-hunting through the closing table. We do this seamlessly and professionally but we forget that our first time home buyer clients take a huge emotional baggage with them. Most of all, we as professionals taken for granted many things we do everyday but our first time home buyer clients don't feel exactly the same way.

Did they do the right thing? What if there is a better house out there? What if this, What if that? That's the role real estate agents play in serving this particular segment of the population: First Time Home Buyers.

Well, if you have forgotten what it "feels" like to be a first time home buyer, please read my client's words below. Our first time home buyer clients are packed with all the emotions when buying a home.

 

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Recently, I was privileged to work with Tracie Gaston - a wonderful client who was very proactive in her quest to homeownership. I cannot find a better client. With Tracie's permission, she wrote:

Hi Loreena,

As you can see below, if you ask me to write something, it's kind of hard for me to make it brief. I know you asked me to give my testimony that was more directed towards my experience as a new homeowner and not necessarily about you. Well, I'm sorry, I have to share my experience with others. I was so lucky to have found you as a realtor. Otherwise, this experience could've been a very different one. Although this is very long, I really hope you have a place to post it because I really want other people to know what an awesome realtor you are!

At the age of 37, I finally decided to take the leap into home ownership. I had been thinking about purchasing a home for years, but always found a reason not to. I think my reasons or excuses for not purchasing a home stemmed from my fear of the unknown.

I was totally clueless about the home buying process, so I did what most first time home buyers do, I got qualified for my loan and started looking for homes via the internet. I found a house I wanted to see, so not knowing any better, I just contacted the agent who posted the listing. Boy was that a mistake. This particular agent did not listen to me when I explained to her what I was looking for in a home, so she basically wasted both my time and hers by showing me houses that I wasn’t interested in. Not only that, the agent wasn't even familiar with the area I was looking in!

At this point, I was very discouraged. I was searching for homes in the Plano/Frisco area. Almost every time I pulled up a listing, Loreena's name and website popped up (kudos to Loreena on her marketing efforts!). I clicked on Loreena's company website one day and started reading her blogs.

I couldn't believe how much valuable information was on her website. If Loreena had this much information on her website, I knew she'd be perfect for a clueless first time home buyer like myself.

I also appreciated that fact that Loreena was not afraid to mix her God First posts with her real estate posts. I contacted Loreena and set up an appointment to view some properties. When I met Loreena and we viewed houses together, I knew she had to be my agent!

I was impressed by Loreena's knowledge of the area and her sincere and honest approach to her job. I don't know how I knew, but somehow I just knew that she would not steer me wrong. I gave Loreena a list of my requirements for my home. One of which was that I did not want an East/West facing home due to the extreme heat from the Texas sun beaming through windows and the backyard.

To my surprise, the next time we toured homes, Loreena assured me that she had previewed the homes to verify that they were North/South facing since that was one of my requirements. I was so impressed and Loreena continued to impress me throughout my entire home buying experience.Loreena walked me through every step of the process and was in touch with me daily to give me updates.

A couple of my faults that I can admit to are that I'm impatient and I get stressed pretty easily. Loreena kept me grounded and stress free throughout the entire process. I think the thing that really made the experience so great is that I truly trusted Loreena. I felt like she always had my best interest in mind and not just her commission. It's so hard to find people you can trust these days and people who actually care about providing good customer service.

Loreena far exceeded my expectations by providing outstanding customer service. I trusted Loreena from the first day I met her and she proved that my gut feeling was correct. I'm also very happy to say that I not only met an awesome realtor but I gained a friend in the process. Thank you Loreena for making my first home buying experience a very pleasant one! After renting all of these years, I finally feel like I'm truly home.

 

 

 

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All contents are original. Consider subscribing to my blog for more real estate commentaries.

Subscribe via Email if you are not an Active Rain member here.

Contact:


Loreena Yeo
Realtor®/ Broker of 3:16 team REALTY
(214) 783-2210
loreena@loreenayeo.com

Super-serving Frisco, Plano, Dallas, McKinney, Allen, Little Elm, Prosper, Celina, Richardson, Dallas M-Streets, Dallas White Rock Lake area communities and other surrounding areas.

Copyright © 2009 by Loreena Yeo (3:16 team REALTY)
First Time Home Buyers Go Through a Stressful Time: Be Empathizing