Real Estate Firm Behaves Badly

[DarwinK]

Any suggestions as to what can be done when a realtor acts in bad faith? The firm in question is fairly prominant and advertises specifically for expatriate clients.

What protection does the client have against bad service and unprofessionalism? Is there a regulator worth complaining to? Can a legitimate complaint be made without being sued for defamation? If not, any other ideas? Wish I'd had some warning about this firm in advance.

Darwin

[tominchaam]

Any suggestions as to what can be done when a realtor acts in bad faith? The firm in question is fairly prominant and advertises specifically for expatriate clients.

What protection does the client have against bad service and unprofessionalism? Is there a regulator worth complaining to? Can a legitimate complaint be made without being sued for defamation? If not, any other ideas? Wish I'd had some warning about this firm in advance.

Darwin

If you want a reply with good quality I think you have to give more information. In any legal difficulties where you risk to loose money consult a good legal adviser!

[DarwinK]

If you want a reply with good quality I think you have to give more information. In any legal difficulties where you risk to loose money consult a good legal adviser!

The real estate firm representing my interests in a deal decided to shop it around to other clients, and closed it with someone else whose situation was less complicated. This happened after I'd paid a deposit and signed an MoU with the other party. The real estate firm then washed its hands of any responsibility, leaving me to pick up the pieces. While I did get my deposit back (on my own), I've lost the deal---and the firm walks away with the commission, and no apparent negative consequences.

Edited August 13, 2006 by DarwinK

[tominchaam]

Sorry to hear about this. But you got your deposit back which is good. Too often the realtors (or house owners) refuse to pay any deposit back even if they should. I doubt you can protect yourself from a situation like this even if you are extremly careful.

[donna]

Too often the realtors (or house owners) refuse to pay any deposit back even if they should.

isnt that the truth.

[laxman1960]

If you want a reply with good quality I think you have to give more information. In any legal difficulties where you risk to loose money consult a good legal adviser!

The real estate firm representing my interests in a deal decided to shop it around to other clients, and closed it with someone else whose situation was less complicated. This happened after I'd paid a deposit and signed an MoU with the other party. The real estate firm then washed its hands of any responsibility, leaving me to pick up the pieces. While I did get my deposit back (on my own), I've lost the deal---and the firm walks away with the commission, and no apparent negative consequences.

Not sure how it really works here but lesson is that the Realtor typically works for the SELLER (That is clear in the US where I am most familiar) since that is who pays the commission unless you have some other contractual deal with them.

Most times the seller goes with the easiest deal and it is up to them to decide which deal to accept. For instance when I sold my house in the USA I had several offers and did not accept the highest one since it came with the least cash downpayment and risk that they would not get approved for their mortgage so I sold it to the next highest one which had no problems.

I suspect they felt your deal would be difficult to close in a timely fashion due to the complications you allude to, so they went and got someone else to buy it more easily. Of course they should have immediately refunded your deposit when the deal fell apart for you, that part is a bit bothersome for sure.

Dan

[Sunbelt Asia]

The real estate firm representing my interests in a deal decided to shop it around to other clients, and closed it with someone else whose situation was less complicated. This happened after I'd paid a deposit and signed an MoU with the other party. The real estate firm then washed its hands of any responsibility, leaving me to pick up the pieces. While I did get my deposit back (on my own), I've lost the deal---and the firm walks away with the commission, and no apparent negative consequences.

In your case, their must be something more to this. Why would a realtor be still showing a property after you sign a MOU? Put yourself in his or her shoes, the transaction between you and the Landlord is a “done deal.” Someone else calls, why show the same property twice, you only can get one fee. If he shows another property different than yours with the MOU, to any new prospects he possibly can get two fees. He simply does not gain anything in the scenario that happen with you.

It very well could be a face thing and the realtor is covering for the Landlord.

This happen in fact the other night to one of our agents. The landlord is a very wealthy Thai, she has the license of a very famous multinational brand for Thailand. The property in question is 100,000 Baht rent a month. (She originally wanted 125K a month and our agent was able to negotiate the rate down to 100K per month) The landlord and tenant are ready to sign the lease and the landlord explained that they were not going to be done painting till the 18th as the Holiday was coming up and a number of the workers from the contractor returned home for a short vacation. She was very sorry but the contractors were out of her control. (I have worked with a large number of contractors and would say the same around the holidays)

The tenant (an Italian) goes ballistic swearing up and down about Thais not being honest and being lazy. The guy walks away from the deal bad mouthing Thai people.

The next morning he calls and apologizes to the agent and now wants the property but the Thai Landlord said “It already has been rented out and is no longer available” The agent tried to put the lease back together but the damage had been done. No matter if the Italian offers 200,000 a month she would never accept him as a tenant. She talked to the agent and said “Whatever you do, do not let him call me and let him try to persuade me. I never want to talk with him again”

I’m not saying anything like this happen in your case but you can see the point, the realtor would not be smart to be shopping a property after a MOU has been signed. Could it be a face thing or the landlord thought you were too demanding ?

www.sunbeltasiagroup.com

[backflip]

I found a townhouse that was perfect. I formed a company with Sunbelt Asia to purchase it. The sales woman's (thai) husband (farang) got notice he was getting transferred to the US. Rather than complete my house purchase, she concentrated on moving to the US. The husband moved to the US, leaving his wife in Thailan. She had no money, house, or job, and she became a prostitute. I ended up buying a condo, and the townhouse seller is still trying to sell his place. The sales woman - who knows?

[DarwinK]

It very well could be a face thing and the realtor is covering for the Landlord.

...

I’m not saying anything like this happen in your case but you can see the point, the realtor would not be smart to be shopping a property after a MOU has been signed. Could it be a face thing or the landlord thought you were too demanding ?

www.sunbeltasiagroup.com

No, that was definitely not the situation in my case. Realtor refused me any direct contact with the counter-party. With realtor acting as go-between, the counter-party signed the MoU listing all terms, and deposited my check. Realtor informed me there were many others lined up for the same deal. Mysteriously, counter-party supposedly decided not to provide me with the agreed documents listed in MoU, while realtor pressured me to complete deal anyway--which I would not do without the agreed upon documents. Realtor suddenly announced the deal had fallen through, continued to prevent any direct contact with the counter-party, and then left me to deal with counter-party's subordinates to collect my deposit. Realtor made no effort to contact me again, and the next thing I know, completed the same deal for someone else. I can't help but wonder if said realtor received a direct payment from someone else (above any commission that might have been earned) to spoil my deal. Without being able to communicate directly with the counter-party, I have no idea what the realtor was communicating on my behalf, or what the counter-party was thinking.

Edited August 15, 2006 by DarwinK

[Sunbelt Asia]

It very well could be a face thing and the realtor is covering for the Landlord.

...

I’m not saying anything like this happen in your case but you can see the point, the realtor would not be smart to be shopping a property after a MOU has been signed. Could it be a face thing or the landlord thought you were too demanding ?

www.sunbeltasiagroup.com

No, that was definitely not the situation in my case. Realtor refused me any direct contact with the counter-party. With realtor acting as go-between, the counter-party signed the MoU listing all terms, and deposited my check. Realtor informed me there were many others lined up for the same deal. Mysteriously, counter-party supposedly decided not to provide me with the agreed documents listed in MoU, while realtor pressured me to complete deal anyway--which I would not do without the agreed upon documents. Realtor suddenly announced the deal had fallen through, continued to prevent any direct contact with the counter-party, and then left me to deal with counter-party's subordinates to collect my deposit. Realtor made no effort to contact me again, and the next thing I know, completed the same deal for someone else. I can't help but wonder if said realtor received a direct payment from someone else (above any commission that might have been earned) to spoil my deal. Without being able to communicate directly with the counter-party, I have no idea what the realtor was communicating on my behalf, or what the counter-party was thinking.

Thanks for the explanation of what happen and it sure seems more and more it was not morally right want was done with your transfer. Want did the seller subordinates say when you got your deposit back from them on what happen? I surmise it was "Sorry, I don't know what happen"

www.sunbeltasiagroup.com

[astral]

I would be very cautious about saying anything publicly or taking any legal action.

Thais can be very swift to take offence and instigate defamations proceeding.............

No matter how wrong they may be!!

[DarwinK]

Thanks for all the advice folks. Looks like there's not much that can be done, and I guess I should feel lucky to have gotten the deposit back. Some sort of consumer protection agency would be a welcome addition here.

The subordinates did in fact apologize for their boss--in my opinion, they behaved quite reasonably. Had the realtor acted halfway decently through the whole thing--or at the end, aided in getting the deposit back--I'd probably feel differently about wanting to take action. Instead, I felt like the realtor was out to ruin the deal from the beginning (which in my opinion could be explained if someone else did offer the firm a direct payment to steal the deal). At best it was truly bad service--and I think there may have been something more involved regarding a significant conflict of interest/ethics. Really unfortunate that there's no recourse, because I believe this firm could behave similarly to others....

[percy2]

If you want a reply with good quality I think you have to give more information. In any legal difficulties where you risk to loose money consult a good legal adviser!

The real estate firm representing my interests in a deal decided to shop it around to other clients, and closed it with someone else whose situation was less complicated. This happened after I'd paid a deposit and signed an MoU with the other party. The real estate firm then washed its hands of any responsibility, leaving me to pick up the pieces. While I did get my deposit back (on my own), I've lost the deal---and the firm walks away with the commission, and no apparent negative consequences.

What was complicated about your situation?

Edit. Quotes thingy didn't work.

Edited August 17, 2006 by percy2

[Thaipwriter]

Ethics / Morals / Honour / Loyalty / recourse.

These are all western concepts that dont exist here in Thailand when doing business. Once you realise this and learn to live with it, you can get along nicely

[DarwinK]

Ethics / Morals / Honour / Loyalty / recourse.

These are all western concepts that dont exist here in Thailand when doing business. Once you realise this and learn to live with it, you can get along nicely

Sadly while these concepts exist in my home county, they are sometimes only followed when there are true negative consequences involved for not following them. Many Thai people I know would argue these concepts do exist here, too.

BTW, I've actually lived/worked in Thailand awhile (c. 15 yrs) and gotten along quite nicely for the most part.

I believe the missing ingredient in situations such as this is not the concept, but the means to provide negative consequences to those who will not self-regulate. Take away the consequences in my home country, and I think many people's behavior would change...

Edited August 17, 2006 by DarwinK