Subscribe to Answers
The residual harm done to the seller caused by the choices the buyer makes is significant and it is my responsibly as the listing agent, to protect the seller.
Of course the lender can not share confidential information but they better be willing the share the level of verification, the status of document submission, the stage in underwriting and even better, a financial penalty paid by the lender or buyer when they miss the closing date.
It is the listing agent and the seller who inherit the enduring damage caused by the buyers agent who chooses to not be proactive. Because of this, listing agents find themselves doing the job on both sides.
How far does that right extend? Seven feet short of calling the buyers mother to assess if they were responsible as a child.
Of course the option available to the buyer to use a lender known to be reliable and competive in the local market solves the issue entirely.
Saint Michael, MN
John G. Johnston
I am always in contact with the Buyers' lender from offer to closing. My experience is that most delays with closing are usually related to the buyers' financing for any of a number of reasons from qualifications to appraisal. I speak to the processor along the way sometimes more often than the cooperating agent.
John G. Johnston
Every right and it extends until the property closes.
John G. Johnston
League City, TX
Removing the lender is NOT within the right of the listing agent - to best of my knowledge.
I love Annette Lawrence's answer, and I think she is totally right...especially the part about the buyer's mother!!!
Wow, John. That's pretty outrageous behavior on the part of that broker.
If you have a clear example of this guy interfering with deals, then talk with your broker and maybe the two can have a 'heart-to-heart' about healthy boundaries.
Look: the Listing Agent has no standing whatsoever to decide what lender the Buyers will use; and any Lender that is 'messed with' should tell that guy to shove it. Period.
And, if the behavior continues, talk with your broker about filing an Ethics complaint first, then discuss filing a complaint with your state's Department of Real Estate.
Yes a seller's agent can contact the buyer's lender. The lender must be careful to remember who he/she represents, though, and not convey any confidential information. I recently had a case where the seller's agent went overboard with this. Calling my buyer's lender several times a day to try to speed up the closing was in really bad form.
YES it is a listing agents duty to make sure the pre-qual letter is real and to get an insight into the buyer but it is NOT at all right to try to interfere with the relationship between the buyer and their loan officer.
Boy, your question really got my attention for some reason.
As Agents, we are bound to advise and inform our clients as to their options throughout the process of buying or selling a home. That includes offering to them the option to inquire further as to the ability of the Buyers to complete the transaction.
When I represent Buyers, I will offer to connect the Listing Agent to my Buyers' Loan Officer, so that the two can discuss the status loan at any time. Doing so fosters confidence and trust amongst the Parties (ie. the Buyers and Sellers), making for a smoother escrow.
But does the Agent have a "right?" That's a pretty strong word. While I believe Best Practices require Listing Agents to ask to talk to the Buyers' Lender, there is no "Right" - unless it is stipulated in the Offer.
Certainly there may be some information that must remain confidential but I think as Listing Agent I have the right to protect my clients and verify information with the buyer's lender AND stay in touch throughout, including having communication with the processor. If the lender were unwilling, well, that makes me pretty uneasy. It has not been an issue
Learning from other answers.
This is to protect seller's interest for sure.
No, they don't.
Was the lender not performing in a timely manner?
If the seller is affected negatively then yes the listing agent has a right to protest. The agent may not get anywhere with it but the seller's position will be made known.