Let Them Recommend - NOT Demand
I just heard a tragic story about a lady - here in HRM - whose banker told her she HAD to use a particular REALTOR® and a particular lawyer or she wouldn't get a mortgage! Talk about red flags going up...
First of all - NO banker, REALTOR® or other professional (and I use the term loosely, in this case) has the right to tell a client she HAS to use a particular professional. They do NOT have the right to withhold something (such as a mortgage) for which one qualifies without just cause. Choosing your own team is not just cause.
When you, as a buyer or seller, are looking for people to help you with a real estate transaction, be very careful of this. If a professional tells you something that you are really uncomfortable with - GET ANOTHER PROFESSIONAL. Please don't fall into the traps that this poor lady did.
Then came her closing day. She should have been happy - elated, in fact. She was buying a home for her family - looking forward to moving in and settling before Christmastime. What happened, today, was this: She met her REALTOR® to do the preclose inspection. A preclose inspection allows the buyer to see that everything that should be in the house is in the house and that everything that should be gone, is. Everything is out of the home and the buyer gets to see the place in its uncluttered entirety. To her chagrin, she found that the sellers had used furniture placement to disguise seriously damaged parts of the carpet. Now that the furniture was gone, she got a really good look at the home. Huge holes and serious staining will make it necessary for this lady to replace the flooring almost immediately. Her REALTOR® told her there was nothing she could do. When this lady spoke to her friend, the friend advised her to have her lawyer withhold an amount to replace the carpets. Well..the lawyer - who was also "recommended" by the bank person - told her she would get almost nothing from the sellers toward the replacement and that, if she didn't close, the sellers could sue her.
Problem is - they could...but only if she absolutely refused to close at all. This lady only wanted some sort of satisfaction for the hidden damages. The lawyer and agent convinced her that she was at fault, that she had to close and that she had no recourse.
I don't know how this will turn out. I'm assuming the poor lady will follow through with this home purchase and have to "settle" when, in reality, her agent should have done his due diligence and inspected things like carpets. A homebuyer is often naive and not sure of what to look for. The agent is obligated to protect the buyer's interests "as if they are his own."
For the love of all things sacred, be aware, be wary and be warned. If you don't like what your banker or lawyer or REALTOR® is saying, if you think it's morally or ethically wrong - drop him now!! Talk to your friends and colleagues. Get recommendations to professionals who have earned their trust and respect. These are the professionals who are dedicated to the honest performance of their duties to you, the client. These are the professionals you need to find and use. It's your move - make sure it's a happy one.