Dealing With Deadbeat Agents

Q: DEAR BOB: What recourse does a home seller have against a deadbeat real estate agent? Knowing we are in a buyer's market, I signed a listing with a high-profile agent professing to have great marketing skills and a fabulous sales record. What I wound up with was an agent who put up the for-sale sign, listed my home on the multiple listing service and then disappeared. No communication, no updates about marketing and no showings. Can I cancel the listing contract with no penalty and list with another more competent agent? -- Suzanne Z.

A: DEAR SUZANNE: It sounds as if you listed your home with an agent who takes lots of listings, knowing only some of them will sell. Before giving up on your listing agent, call him to discuss the situation. Ask why he didn't have a broker's tour for local agents. Ask what specific advertising he is doing for your home. Ask when he will be holding weekend open houses. Ask what he is doing on the Internet to sell your home. Ask if there is anything you can do to help him shape up and sell your home.

Be persistent but polite. Tell the agent you are disappointed and you expect him to phone you at least once every week to report on progress. If he refuses to cooperate, tell him you want your listing canceled immediately in writing so you can list with a more effective agent.

Another alternative before canceling the listing is to speak with his office brokerage manager. Explain why you are unhappy. That manager should suggest either switching the listing to a better agent within the same firm or canceling your listing.

Before you re-list with another agent, interview at least three successful agents who sell homes like yours in your vicinity.

DEAR BOB: I own a rental property with an adjustable-rate mortgage. The mortgage balance is about $74,000 and the property is worth about $714,000. My ARM is getting close to its next interest-rate adjustment in November. The lender urges me to refinance with a fixed-rate mortgage for 10 years. I am 76, retired and I think refinancing is risky and expensive. The rental income will more than pay an interest-rate adjustment, which is tied to the 11th District Cost of Funds Index. What should I do? -- Diana C.

DEAR DIANA: If I were you, I wouldn't do anything. It sounds as if you have an excellent mortgage with a low balance compared with your property value. The 11th District Cost of Funds Index moves slowly. Unless you have a need to refinance to take out tax-free cash from your huge equity, I see no reason to refinance even after your ARM adjusts.

DEAR BOB: I put my apartment units up for sale. A buyer made a purchase offer, which I accepted. He paid $2,000 good-faith money. But I changed my mind and want to stop the sale. What penalties will I incur? -- Larry Y.

DEAR LARRY: It sounds as if you have seller's remorse. If I were the buyer's real estate lawyer and the buyer still wanted to buy your apartments, if you refused to deliver the deed as agreed in the contract, I would advise my client to file a specific performance lawsuit against you and record a lis pendens against the title.

Unless you have a valid legal reason to default, the court will issue an injunction ordering you to deliver the deed under the terms of the sales contract.

Before you refuse to perform under the contract, I suggest you contact the buyer and the real estate agent to have a friendly conversation about being released from the sales contract. The agent has a stake in this situation and might sue you for lost sales commission. For more details, retain a real estate lawyer.

DEAR BOB: I am considering getting a senior-citizen reverse mortgage on my home, but what happens after I die? Who makes the decisions concerning the sale of my home, such as selecting the real estate agent, asking price and repairs to be made? Who makes the decision to accept an offer or make a counteroffer? What if my son does not accept an offer and the house sits empty? What action can the reverse-mortgage holder take? -- Frank M.