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MarkB19 (Florida)
Posts: 2
Posted:
In July 2014 Our HOA Board of Directors entered into a 48 month Agreement with a Local real estate agent, by name, who was at the time an agent at a Coldwell Banker Residential real estate firm here in Florida. The selection of this
Individual was based on the recommendation by the President of the HOA who had/has a close personal relationship with the agent. No other candidates were considered. The HOA supplies the agent with all administrative necessities, including personal office, phone, computer server and full access to the community. The HOA is not compensated other than the fact the agent provides "marketing" for the community.
Under the terms of this specific Agreement the agent Agrees to use "the brokerage firm of Coldwell Banker for any and all real estate transactions." The last paragraph goes on to state "this agreement represents the entire Agreement between the parties. The agreement may not be amended, changed, or supplemented in any way except by written agreement igneous by both parties."
In July 2015 the agent went to another local agency and works exclusively through that agencies brokerage house, which isn't Coldwell Banker.
Our BOD is aware of this and has taken no action to either amend the agreement or seek another Agent who operates through Coldwell Banker not to mention they have not informed the 300+ members of the community. Am I correct in assuming this contract is void? Should Coldwell Banker be eligible to recoup lost brokerage revenue. What should my recommendation be to the greater HOA? I consider that both BOD and agent have acted unethically in this matter.

Mark
LarryB13 (Arizona)
Posts: 4,099
Posted:
Mark,

I am not familiar with Florida law but I believe that in AZ such an agreement must be made with a broker, not a real estate agent, even though the agent could be the sole staff in your on-site office. I also believe it would be improper for the agent to sign on behalf of the broker.

Is there some sort of Florida department of real estate where you could make an inquiry or file a complaint?

Have you contacted the agent's former broker to see if they knew about this agreement or of they agreed to let the agent keep the contract?

TimB4 (Tennessee)
Posts: 21,059
Posted:
I'm not really clear on why the Association even chose to enter into such a contract.

Is the Assocaition still under Declarant control?
MarkB19 (Florida)
Posts: 2
Posted:
Thank you for this Larry. I will check tmw with former broker and with dept of real estate for the unorthodox exclusive agreement with an agent. I was in govt contracting and our contracting support would always try jumping to other contractors for more money or benefits. As we had a contract with the company, and not individual, we used to allow the company first option to fill the vacancy should the person leave. Only if there was no one else qualified would we put it out to another contractor. You have given me sound advice!!

Mark
GenoS (Florida)
Posts: 4,276
Posted:
I don't understand, either, why an HOA would have to enter into an agreement with a RE agent/broker. For what purpose? To "market" the community? I'm not sure what that means. It sounds like this person got the full use of, essentially, an office and I assume a commission on homes sold (?) but what did the HOA get in return? Is it a new community with a large inventory of unsold properties?
BobD4 (up north)
Posts: 1,002
Posted:
MarkB19 (Florida) :
Was the Agreement to operate some sort of unit 'rental pool' or partial hotel operation ?

If not, did anyone mention restraints of trade/ competition/ infringement of property rights issues ?

Could the Agreement have technically been with the agent rather than CB ? If with CB did an assignment get contracted validly ?

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