In exchange for the opportunity to get a listing on a property managed by a bank or an asset manager, brokers are often asked to render Broker Price Opinions (BPOs) at rates much lower than bank appraisals cost. But the risk is greater than putting out a lot of time, effort and sometimes expense to bet on the come - sometimes agents don't get paid until months after the BPO was performed, or they don't get paid at all.

What is slow pay? That's a different definition depending on who you talk to, but if you have been waiting six months or more for an asset manager or bank to pay you for a BPO, then there's definitely a problem.

Explains BPO veteran and Colorado Realtor, Ken Cox, Realty Check Real Estate Services, Inc., "Most legitimate companies have a policy of payment within 30 days.... some pay within a week. Some require the agent to pay out of pocket expense items like lock changes, lawn care, trash removal and are reimbursed on invoicing the company."

But, he warns, a trap that agents can fall into is not knowing when they will be paid on a property they do not have a listing on, or if they will get paid at all.

"I have recently had this problem with one company called Cartel Asset Management," says Cox. "I discovered through online contacts that this is their operational mode. They will only pay after threats, and typically payment is less than was agreed on when the job request was made."

As proof, Cox supplied Agent News with copies of e-mail correspondence that he has had with Cartel, in which the company admits that it is delinquent in its accounts to Cox due to circumstances beyond its control. But the troublesome reference in both notes is that the e-mails, dated Monday, December 10, 2001 10:27 AM and Wednesday, March 20, 2002 11:22 AM both use the same text that refers to payment batch numbers.

Thank you for your accounting inquiry, you are scheduled for payment in batch 136, we are currently paying batch 108.

Due to many separate and various circumstances beyond our control, we are running extremely delinquent with our payments to you. We do have plans, budgets, and schedules that will eventually make up for the losses we experienced caused by these circumstances, these plans include paying you all monies owed to you.

In order to keep costs down for both of us, we prefer to converse via e-mail and fax although, please feel free to call if you feel this isn't providing the assistance you require. Also, limiting the number of times you make inquiries will not only keep costs down, but also assist us in answering any inquiries faster.

We do apologize for the delay and we will get this payment out as soon as possible. Please note my e-mail address bparks@cartelbpo.com.

Thank you for your inquiry and patience,

Cartel Accounting

Cox says that he eventually did receive partial payment from Cartel, after waiting months for payment, but the amount for one invoice was short by half, requiring that he make further demands for payment.

Cartel CEO Cartel Asset Management president Walt Coats says that the agent complaints about slow pay are true.

He blames the slow-pay situation on changes in the industry. "We've had a few banks go under on us," says Coats. "Banks are always quick to order and not to pay. Some of my larger clients have gone in-house, so that has changed my financial position."

"We just got in trouble financially, and it has taken time to cure," he explains. "We are working to correct the problem and hope to have a solution soon. We apologize to the agents for the inconvenience we've caused them.

So what can agents expect who are owed money? "It is unfortunate but a lot of companies are in the same boat right now," says Coats. "We just ask the agents to have patience with us. Things are starting to look up again."

But Cartel isn't the only company name agents are complaining about. Another is Premiere Real Estate Services in Parsippany, NJ.

"I am still awaiting payment from Premiere Real Estate Services for a BPO they ordered on 12/27/00 and due 12/28/00 for $95.00, says Tampa Bay Realtor/broker Thomas Power. "Their file asset # is 701409640. Ken Gilbert is listed as their Valuation Coordinator and I had two conversations with him after the BPO was performed. He assured me I would be paid soon and has not returned any calls. It is just about one year and four months later, and I have received neither payment nor a return call."

Seconds Lynda King, Realtor, "Premiere is the worst. They are very slow pay, if they ever do decide to pay at all. I did get my money, but it was many months past due. Only after I contacted the client did I get paid. The client was very surprised to learn that I had not been paid because they had paid Premiere for the BPO many months before my call."

Further, King claims that attempts to contact the company were frustrating to her, that accounts payable personnel played "good cop, bad cop" with her.

Responds Premiere president Jack Beierle, Jr., "We constantly get new clients, but some banks are extremely late paying. We are trying to get the clients to pay quicker. Sometimes it is like pulling teeth, and we have to invoice them as many as three times, so we are working on eliminating clients which don't pay us, and we are working on getting new clients which will pay promptly."

"If an agent will call us right away, they will be taken care of, even if we haven't been reimbursed yet," says Beierle."I'm a licensed Realtor, and this is my 11th year, and I have never had a lawsuit. Call the office and ask for accounts payable. If any agents call that don't get a response from our office right away, they can e-mail me directly - jack@premierebpo.com."

King says she isn't impressed. "When I kept getting shuffled back and forth between the account manager and the accounting department, I e-mailed Mr. Beierle to make him aware of the situation, the lies I was being told, and just how badly I was being treated," she says. "In fact, I e-mailed him two different times...no response from him either time."

"These rip-offs are costing brokers and agents thousands of man-hours and expense since most BPOs require photos and frequently full interior inspections and repair estimates," says Cox. "It is a nation-wide problem."

Are all asset managers a risk to work with? Many asset management companies have excellent payment records, says King. "There are fair people, Corporate Link in Texas and Keystone Asset Management in Pennsylvania are excellent about paying agents on time."

Tomorrow On Agent News - How To Get Paid For BPOs.

Published: April 16, 2002

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