Here's the story.
I found a house online. I mentioned it to a builder who is also a realtor. He was curious and wanted to see it. He then offered to present a low-ball offer on it for me. Months went by, our offer never got accepted. I figured out he was TERRIBLE in negotiation. I contact the seller's team myself, negotiate the deal, agreed on price. I tell them to contact the builder/realtor so he can write the new contract. He now blows me off saying he's busy. I get mad and tell him he's served no purpose, now I am getting a new agent to write the contract. He is saying I would owe him. Since I found the house and negotiated the deal, I don't think he has procuring cause. I'd like to have another agent who is more committed to me to be there during the purchase process. I NEVER SIGNED A CONTRACT. What would AZ law say?
Generally speaking, all contracts dealing with real property (houses, land, apartments, etc.) must be in writing under Arizona statute. When not in writing, the oral contracts dealing with property are not given force nor effect. Now, this is a very general assessment, and certain facts of parties' dealings can change the analysis. Moreover, just because one may be successful in court does not mean that they will not be sued. You may very well be "in the right", and the other person may believe he/she is in the right. This is what leads to lawsuits. So, you may get sued. OR, maybe the person is trying a strong arm tactic to extract some money. Either way, you should consult with contract and litigation counsel so we can take a look at your dealings and counsel you as to what you can expect if you take alternate action that is justified and legal but still get sued by the first builder. There is much more to discuss, and setting up a meeting with contract litigation counsel would be your best bet. There are many of us here on who can assist.
I hope you find this helpful. Peace and wellness,
Mike Troncellito
I am not licensed in AZ but in a situation like this anywhere you will want to contact a local real estate attorney and find out whether you are obligated under state law. Once you understand your rights and duties, you can decide what to do.
Judy Feuer ZimetReal Estate AttorneyCarefree, AZ ·
This is a situation that will be driven by evidence.
Do you have proof of the statement, "I found the house online." Did you send him a written message (email, text, etc) telling him that you found the house?
Do you have proof of the statement, "He blows me off saying he's busy." If you have a clear break in written form, from him, that evidence would help your case by showing that he withdrew from representation, breaking the continuity.
Unfortunately, in AZ you do not need to sign a contract to be beholden to an agent - even a terrible agent. The fact that you signed an offer to purchase, which he drafted, is enough for him to argue procuring cause.
I suggest you work with a real estate attorney on this matter. There are many on the site who can help you. Be sure the attorney understands procuring cause elements.
