I would suggest if you are still interested in the referral based on the new information, then revisit the conversation with the referring agent and explain the new-found data and renegotiate the terms or be willing to walk away...

Neglects is a loaded word. If they knew beforehand I would renegotiate since short sales and foreclosure avoidance is about three times the normal work.

And how that person will buy?!

I would reach back out to the agent, Paul. I rarely ever charged a referral fee for a short sale - there's simply so much work involved. I just wanted them taken care of by a good agent who knew short sales.

I think it depends on the situation and I don't know enough about how this referral came about or what you consider a standard fee. I recently referred a seller to an agent here in the Rain and when some issues arose with the appraisal she cut her commission to help the seller out, I told her not to send me any referral fee. As far as I was concerned, she had given enough. I think you have to look at these situations individually.

Everything is negotiable, you could also turn it down.

  I will pass on the short sale.  I may pass on the REO.  

No way! I guess, it is not about fee, it is - will they buy or not. 

A sin of omission?  Or just a sin? What happens next? It depends.  Certainly a conversation should take place. 

I've learned you don't get what you deserve, you get what you negotiate.

Like Bob Crane said, everything is negotiable and if you don't like the terms, turn it down.

Good to see you back in the Rain. 

Only the agent can decide regarding referral fee.

They NEGLECTED to inform you? Or they DID NOT KNOW?
The answer to those 2 Qs determines the action.
Yeah, SS/preforeclosure is more work. How much work is the other issue. Some are easier than others. Will it close? Can it?
I will tell you though. I have accepted a referral before and did not know, NO ONE KNEW that it was gonna need to sell short, and I didn't try to renegotiate it. The family was in too much trouble. The agent should have offered. But they didn't.

If their position . . . I would have. But that's me.

What's a standard referral fee?

 if your market is strong, maybe it's not more than any other deal.... our short sale sellers all had an attorney who was well versed with negotiating with the bank... the attorney did the negotiating with the bank we marketed and delivered the offer....  and finished the deal after it was negotiated.... 

It changes everything.  Renegotiate.

Depends on the situation and the fee, but might not be worth the effort and time involved.

3 things you need to know.

1. What is the likelihood of closing (number of lenders)

2. Does the house have acceptable appeal

3. Your direct time. Clearly if YOU do the negotiating, your direct time goes out the roof. Short sale companies can add their fee to the closing costs paid by the lender. So why get in the way.

With that information you can determine if this is business you want or if it is a 'go broke' opportunity.

If you can make good money, you must pay to play. But, being the stellar negotiator you are, you advise the referring agent no on will touch this with a 10 foot pole and you might consider taking if off their hands.

Paul,

I think you are in for a major headache with this.  I would suggest that you pass on the referral.  That is what we would do.  A

learned the hard way to get all the details before signing the agreement.

That is for you to decide. Reject the referral if you do not want it.

To many variables here Paul S. Henderson, REALTOR®, CRS . If it's a high end home I may proceed. If the lender is BOA I'd run like hell.

It depends on many factors as mentioned above including the relationship with the agent who sent you the referral. I have a few referral partners I work with on a regular basis. I'd like to think they'd tell me up front. However, I wouldn't want to damage our relationship either.

That should be part of it and i just had that happen. The referral fee remains the same, but the commission charged to the seller went up. 

I am not aware what a "standard" referral fee is. Don't tell me, either. Negotiate based on what you think the opportunity is worth or pass it up.

Wow, might want to revisit the referral fee!

Maria Sapio nailed this one!

I learned in the school of hard knocks to ask those questions.  Divorce? Shortsale? relocation where someone else will also want a referral?  But in the past when I had already signed it and agreed, I bit my lip and honored my agreement.

Yes.

Wow, never had that happen.

It may be worth another conversation.

I woud be having a new conversation

I'd probably try to renegotiate if they knew about it ahead of time and "forgot" to mention it.

I think it's your call.  I probably wouldn't accept it.

Depends on the outcome but certainly this is relevant info. Sniff this out

It is possible, they did not know such information. And a deal is a deal, you can always walk away from it.  

Ooof. We'd probably still take it and do it since we have a great deal of experience in short sales. Good disclosure for the other agent though...