When the ethics of my broker were questioned by his association representatives he responded by cancelling his realestate license though he continues to represent for realestate transactions. He received or caused to be received undue brokerage fees and the state has no jurisdiction to recover them on my behalf nor to regulate his unlawful realestate transactions.
I wonder how many others have been swindled by the smooth salesmanship of DG and others like him. Seller beware.
History - Realestate broker (DG) contracted to sell my business including the option to sell/lease operating realestate in July 2009.
As a slaesman he was quick to locate a buyer and presented an offer to close the sale of my business and sign a lease on Aug 21, 2009.
Days prior to the proposed close I was told that he would be out of the country but that I had to agree to the terms of the close including escrow instructions he had generated granting DG a full commission and an additional 50% commission to the buyers broker (RR). When I questioned this and a few other details I had not been previously aware of - I was told by DG, my paid representative - who is charged with representing my interests, that it was standard and required that I as seller pay the additional commission to RR and that if I declined to agree that the deal would be off.
Not knowing any better and having accepted another position that would start right after the propoosed closing date I reluctantly agreed to the escrow instructions.
Not even a year later, my original broker was listing the property when DG approached with an offer from another party to buyout my buyer and to purchase the building. (This was the third party in 10 months to consider the purchase through DG from the buyer he brought to me.)
A deal was finally made and I was bought out of the property. Interestingly, my original broker split his comission with DG without my incurring any additional expense.
I asked my accountant and an attorney friend about this and in review of contracts and other docs was told that I should never have been charged the buyers broker (RR) commission as I had no written agreement to pay him.
Not able to afford the legal costs I approached both of the brokers about the error myself.
RR had received $3150 in commissions for which he had no contract and had 'no consideration' for. He told me to leave him alone or that I could speak with his father, a prominent attorney in the east valley.
DG told me that I was welcome to file a complaint with the department of realestate but they would have no jurisdiction as because ours was first a business brokerage issue though it had a lease component.
I initially contacted the az assoc of realtors who were very interested in what they deemed an ethics violation of DG who instructed that I had to pay fees that I was not obligated to pay. They contacted DG and told him that there was a case being made against him. He told them he would look through files and get back to them in a day or two. A week later they tracked him down again and he told them that they had no jurisdiction over him because he had cancelled his realestate license.
This has been verified by the AZ dept of real estate.
The department says they have no jurisdiction over fee disputes and will not hear my case for the extra commission. Unfortunatrely my only option is civil court and because of the amount I am not able to file in small claims.
AZ DEpt of RE was interested in the fact that DG still advertises realestate transactions on line and in association monthly publications though he has no license to do so. They encouraged me to file an illegal advertising complaint against him though they volunteered that it would not help my case.
I find it discouraging that our regulatory bodies have no authority when ethics are violated and those they regulate disregard requirements and policies.
I wonder how many others have been swindled by the smooth salesmanship of DG and others like him. Seller beware.
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