Legal Question in Real Estate Law in California

Real Estate Agent Acting Like Property God

simply: Can a Real estate listing agent\broker require me to use a lender of his approval? Even when I have already been approved by a lender of my won choosing? Agent also denied me the ability to make a legit offer for more than 5 weeks.

Thank You!


Asked on 1/31/02, 5:04 pm

1 Answer from Attorneys
Ken Koenen Koenen & Tokunaga, P.C.

Re: Real Estate Agent Acting Like Property God

The answer to number one is that he cannot force you to use a lender of his choosing. That is know as steering, and is a RESPA violation which could cost him about $10,000 in fines.

What he CAN do (if he is representing a seller) is to require that his lender speaks to your lender, to verify certain facts. Unfortunately, there are a lot of flaky mortgage people out there, and to tie up a seller's property for 30-45 days, only to find out the buyer cannot buy it is unfair.

If you want to make an offer, and he won't allow you to, call his broker. Tell him that you have tried to make an offer for 5 weeks, and he won't present it. Better than that, get another agent to write up the offer and contact the other agent. If it is on MLS, he is obligated to present the offer.

I would be happy to write a contract for you. I am a licensed RE Broker as well as an attorney.

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Answered on 1/31/02, 5:48 pm


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