Dear George: We closed our home purchase on Friday. We are extremely disappointed with the brokerage firm that represented us as buyers. We felt like our agent just dumped us off at the listing broker's doorstep. Fortunately, the listing agent took us under her wing. She returned our calls in a timely manner. Our agent never returned calls. The listing agent helped us with the lender. Our agent did not. We feel like the listing agent did all the work. Yet, our agent received half the commission! Can anything be done to make things right? -- Disappointed.

Dear Disappointed: The listing broker can pursue filing an arbitration proceeding through a local Realtor organization if he or she is a member. Essentially, it would be based on a claim that the selling agent failed to perform the functions expected by the listing broker. That is between the listing and selling brokerage firms.

You, however, may have legal recourse against the selling broker. If you believe the agent did not adequately discharge his or her fiduciary obligations, you may wish to consult an attorney. Only an attorney can advise you regarding your legal rights and responsibilities.

Dear George: I have a question about seller practices relating to mortgages. We are building a home through a well-known builder. We have received various incentives on our house. Some of them involve upgrades. They are all contingent upon our using the builder's mortgage company. The salesperson said that the builder would pay $2,000 towards the title on the house as well. While shopping for other mortgages, I was told that the seller has to pay for the title policy anyway, so that wouldn't really be a perk. Is it true that the seller is obligated to pay the title, or is that negotiable?-- Suspicious

Dear Suspicious: In many states the question of who pays for title insurance is negotiated between the buyer and seller. But if the buyer pays for the owner's title insurance policy, the seller may not specify the title company. Otherwise, where the transaction closes is a matter of negotiation.

Dear George: A builder's sales representative told us that if we used a certain mortgage company, the builder would pay for upgrades. I am nervous about being trapped. What if the mortgage company charges higher interest rates? What if their closing costs or other fees are higher than others?-- Nervous

Dear Nervous: It appears a real estate brokerage firm does not represent you. If that is the case, hire an attorney. Ask him or her to review all documents the builder is asking you to sign. Do that before signing anything.

Dear George: I listed my home with a broker. I had several showings but it didn't sell. The very same day my listing ran out I had 6 or 7 calls from other brokers wanting to list my home. Isn't there some kind of rule against that? -- Seller

Dear Seller: When a listing expires in the Multiple Listing Service, it shows up as a țstatusț change. Many brokers run daily updates in the MLS looking for expired listings. The MLS Rules (as well as the applicable state laws) prohibit a real estate agent from soliciting to list your home only while you are under an Exclusive Right To Sell or Exclusive Agency listing agreement. Once the term of the agreement is completed, other brokers are then free to seek your business.

Dear George: My wife and I recall reading an article you wrote some time ago. You discussed what you called the "PEA" factors involved in selling a home. We think the "P" stands for "Price." We"re guessing the "A" stands for "Advertising." What does the "E" stand for?-- Stymied

Dear Stymied: The PEA factors are necessary to achieve a timely sale under current market conditions.

• "P" stands for a realistic asking price.

• "E" is maximum exposure through advertising.

• "A" stand for reasonable accessibility. That is, potential buyers must be able to gain reasonable access to view your property.

Dear George: We are trying to learn as much as we can before buying a home. We are "first time" buyers. We met with a lender. He stated that his firm was a mortgage banker. We felt he was implying that his firm was superior in some manner to a mortgage broker. Is there any difference between the two? If there is, would you please explain it. We trust your opinions. -- Borrower

Dear Borrower: A mortgage broker is an individual or firm that brings borrowers together with lenders for the purpose of loan origination. A mortgage broker does not originate or "service" mortgages (collect monthly payments from the borrower).

A mortgage banker originates and services mortgages. In addition, the mortgage banker sells mortgages in the secondary mortgage market to investors.

The laws relating to mortgage brokers and mortgage bankers vary by state. For details, consult with local regulatory officials.

George Stephens welcomes your questions by e-mail. Because of the volume of mail received, questions cannot be answered individually. Mr. Stephens is not a lawyer and this column does not contain legal advice. If you wish to obtain legal advice, please consult with an attorney or legal clinic.

Published: May 4, 2001

Use of this article without permission is a violation of federal copyright laws.

George C. Stephens, CRB is the Broker of deRaat Stephens, Inc. dba ERA Stephens Properties and the Director of Compliance for eRealty, Inc. Stephens served as 1998 Chairman of the 13,000+ member Houston Association of REALTORS® and is the Vice Chairman of HAR’s wholly owned subsidiary, e-Har, Inc. He is the 2001 Secretary/Treasurer of the 50,000+ member Texas Association of REALTORS® and TAR’s 2002 Chairman-Elect. Stephens holds a Texas Real Estate Broker license as well as a Texas Mortgage Broker License.