Brokers Corner > Regional and Independent
Brokers Corner > Regional and Independent
Embedded Files
3/2/2023
This page has been created for all US Real Estate Brokers who currently own or manage Regional Brokerages or Independent Local Brokerages OUTSIDE OF Monterey County, Santa Cruz County and San Benito County California. NOTE: This is not just for California Brokers outside those Counties, it's for ALL US BROKERS operating outside of Monterey, Santa Cruz and San Benito County CA.... (expand for more)
This page details an "inverted" RPA (Residential Purchase Agreement) that was presented to a Licensed Agent from another state for use to purchase a home in Monterey County in March 2021.
The Buying Broker that presented it to him was Coldwell Banker. The Selling Broker was Keller Williams. During the transaction, every inverted clause was clearly known to the part time Keller Williams Agent and exploited for maximum seller gain and legal protection. As is turns out, the Seller's Agent and the Seller had conspired to conceal about $250,000 in damages and they used a very bent contract to gain alot of protection against claims for disclosure fraud. The Buyer (the agent from another state) ,felt forced to use the contract and forced to complete the transaction mid COVID to secure housing in an unstable housing market. Accepting all the manipulation and fraud was his "lowest cost option" in his eyes. He currently views the Monterey Brokerage system as a "Gypsy Mafia" controlled system with an "inverted" RPA. He's currently seeking rectification for his damages as well as that for all Buyers who have been forced to use that contract since 1994 in Monterey County and a few surrounding counties.
Can you imagine what happens if all commissions paid to Selling Brokers since 1994 must be returned to the Sellers and punitive damages are applied to all Brokers on both sides for running the racket? It should be in the BILLIONS and BILLIONS for sure.
This URL has been sent to a small #of Brokers from several states to test responsiveness. They were asked to review this webpage. They were asked to provide a reply back to support@brics-practice-management.com no later than Friday, 3/17/2021. Based on the size and nature of those responses, more steps will be taken to expose or resolve this situation one way or another, with or without the support of all Independent and Regional Brokers.
Letter from a very Violated Buyer who is a Licensed Real Estate Agent in a state other than California
3/5/2023
Dear Fellow Agents and Brokers,
I’ve been a Licensed Real Estate Agent in Maryland since 2002 and a Licensed Contractor there since 2005. I have over 20 “NY Loft” style row home rehabs to my credit in Baltimore. I moved to Monterey County in December 2012. I reside here full time, and I return to Baltimore once or twice a year to care for a few remaining rental properties.
In March 2021, my significant other and I found a home to purchase in Monterey County with the Assistance of a Coldwell Banker Agent. The property was listed on MLS by a part-time Keller Williams Coastal Estates Agent.
Our Coldwell Banker Agent (aka Buyers Agent / Cooperating Agent / Sellers Sub Agent ) provided us with a CAR (California Association of Realtors) Approved RPA (Residential Purchase Agreement) that had a fully “inverted” set of Clauses for the Disclosure Process.
The Disclosure Document presentation timing was to transpire within 7 days AFTER Contract Acceptance, rendering Disclosure Documents “useless” as part of the “As Is” Condition comprehension needed to create a financially appropriate offer.
Analogy: “Hi, I’d like to make you an offer to buy your car, but don’t tell me about any problems or issues with it. Let me craft a binding offer and give it to you. After you accept it, tell me if there are any defects I should have known about prior to crafting my offer that would have prevented me from offering too much for your car”.
The contract was approved by the California Association of Realtors...
At face value, that is “bat sh-t crazy”, and it gets worse in Section 10 and other sections of the RPA...
If the Seller wanted to change disclosure statements after 7 days, they were free to do so. The buyer had the opportunity to review and kick out after each change, but this could transpire until the close of escrow AND the seller had no obligation to reduce the agreed upon price for changes that diminished the property value.
If the Seller wanted to add new disclosure statements after 7 days that they forgot to include prior or intentionally omitted. They were free to do so, as they wished. The 7 day window wasn’t really of any relevance.
All material defects discovered in Buyer Investigations that were not disclosed by the Seller became part of the Seller’s Disclosure Documents. Those were not Disclosure Fraud items because the contract said they weren’t.
There was no need for declaring processes to handle things like “discovery of disclosure fraud during escrow” because there were no written disclosure documents provided prior to making an offer and all documents could be changed by the Seller at any time.
To remove the Condition Contingency the Buyer had to accept all conditions then known no matter if disclosed by seller before or after their disclosure window OR if found by Buyer.
Does this sound like any Brokered Transaction you have ever heard about before? Yes or No
Do you feel this "system" should have ever been participated in by National Brokers in Monterey County ? Yes or No
Does this sound like an exposure that might give ALL BROKERS including regional and local Brokers a bad name? Yes or No (HINT: if you think not and act not, some will work hard to make it so....)
Are you willing to collaborate with other independent and regional brokers in your communities and at the state levels to put together letters and send them to 1) NAR 2) the National Brokerages 3) the FTC 4) the FBI and 4) Your State Attorneys Generals for forward to the Department of Justice to call out this Gypsy Bullshit ? YES or NO....
The RPA (redacted) view
Expand for Contract Pointers...
10A, 1-7 - define disclosures changes and allowances after disclosure, to and including all buyer found facts as part of seller dislosures
11A, B - As is concdition clause, with references do disclosures BUT without them to bid, exactly how is that applicable?
13 B, D - These declare the transfers of equitable and legal title properly as 2 separate acts. Relevant when reviewing CA 1102.
14 A, B 1-5 - Defines delivery of Disclosure Documents up to 7 days AFTER contrct acceptance
14F - Condition Contingency Removal - Buyer absconds seller of all known defects at that time. Both those disclosed and those found. IE if the seller attempted disclosure fraud for 5k or 20k or 100k and you caught them in the escrow doing it, if you'd like to buy the home, you have to accept it as is with no fraud claim abilities against the seller. (and if you don't buy it and they try it again, you have no grounds to sue...)
This is "Gypsy Mafia" work.
In my opinion, the Gypsy Mafia are the only ones who would do something so brazen in plain view, and have the confidence they could control everyone needed to pull this off since 1994.
They had to control all the politicians, judges , National Brokerage Employees, California Association of Real;tors and NAR employees to keep this sitting in plain view.
It's believed at this time that whoever put this into motion is no longer strongly tied to the system or enforcing their will (for obvious reasons), This is yet to be positively confirmed.
It should not be assumed until the origins of this system along with the names of those who originated it are all known, AND until all those involved try to claim "it was here when we got here" as if that would absolve them of the insanity.
Legality
I have reviewed CA Code 1102 in entirety to determine the "legality" of this RPA.
I do NOT believe these contracts would prove out to be legal in a court. The key has to do with a vague 1102.A combined with clauses 13B and 13D in the contract which provide the supporting clarity for the two step transfer of title process
However, the 1102 text is written in bizarrely vague manner which indicates to me the text itself was part of a Babylonian Board game meant to teach Real Estate Law, and never meant for implementation as Legal Code 1000's of years later.
The game board reference is support for the "Gypsy Mafia" connection in the truest since of the gist.
The "gypsies" being referred to are the commercial gypsies (the enslavers, not the slaves) that have been roaming for 1000's of years, although few want to admit that currently...
For legality presentation, see home page, document 1 and the page for the law school students.
We were jambed between a rock and a hard place and then Energetically Raped "by Professionals"
I've written about our experience extensively. You can read about it at : https://home-purchase-2021.bryancanary.com/
We were being forced from our 8 year rental peak covid. The market was untouchable and rising weekly. All RE professionals were making bank and didn't care about the abuse to buyers. We were in a County that was obviously Mafia controlled and walking from this left us looking for other homes with the same potential problems or renting for $3000+/month?
Here's the part you don't know yet. The Keller Williams Agent and the Seller were obviously fully versed on all of these clauses. they tried to hide 100k- in discloser stuff that we found during escrow and when found they just came clean as if that was okay, "because the contract said so and provided liberation from fraud". Then, after close we found about 100-150k more of buried defects that the Sellers Agent had overseen the burial of when the seller moved out of state. Quite a Brokerage System KW runs in Monterey County. What's it like your part of the woods?
Action for Brokers...
Please review this information.
Please send an email to support@brics-practice-management.com indicating if you have or have not seen this type of thing before or elsewhere and if you'd be willing to organize brokers at your city, county or state level to call out this behavior.
Please make your response no later than Friday, March 17, 2022 at 5pm PST.
The initial responsiveness to this request for support will dictate the following moves...
Additional Comments
Additional Comments
The Real Estate Brokerage System has been one of the most knowingly corrupt systems of all I've been involved in since starting self employment in the 1990s.
The very idea that a "seller" pays for a "buyers" representation is "bat sh-t crazy" at face value, and if you are reading this, you know damn well the public has no true clue of how crooked "your business" has been and is today.
I had my license for my own transactions. I'd do an occasional transaction for others. I'd love to have done more but the potential for ethical dilemmas in every transaction was simply GROSS due to the system we "were all born into".
Given I had other ways to make money I pursued those, wishing the system was different so I could have enjoyed it more. Thankfully, none of us created this sh-t pile or things could be much worse.
As most of you should know now by now, there are 2 class actions in the works against NAR and the major national brokerages.
One is for $10 Billion and it is certified.
The other is for $50 Billion, and it is still pending certification.
They have approached an industry shakedown from an antitrust perspective for the Seller because the attempt to properly shake it down due to buyer harm was dismissed due to "standing".
The buyer, the raped party, didn't pay any money towards their own rape, thus they had no position to sue for rape. Can you imagine?
The party who has been raped over and over again for 100 yrs was not able to sue because the system was setup to rape them to start with, with Broker Beneficiaries looking on with $ signs in their eyes.
Given the 10 Billion claim is certified, it's a done deal one way or another.
The expectation is that Buyers Brokers will be a thing of the past. So POOF goes 50% of brokerage revenues.
It would seem logical that Buyers may be able to pay for representation and that may come back but who knows. I can imagine a system where non licensed consultants are used.
The problem I have with that potential outcome of these Antitrust cases as of now is simple.
Most of the Brokers I know have made a living presenting themselves as Consumer Protection Advocates who guide buyers through an appropriate legal process, when in fact, we all know that's not what Brokers ever have been. You've all been beneficiaries of a system designed for buyer rape. As mentioned prior, thankfully it was designed before we were all born. Somehow that seems to make it sound a little better.
This "inverted RPA" contract situation provides an opportunity for all regional and independent brokers to run the big brokers out of business. They all would have KNOWN WITOUT QUESTION that that contract was beyond inappropriate. Period. End of story.
If this goes down as I'd like it to, they will get so tarnished there will be nothing left.
However, as of now, I and others are advocating for an entirely new Flock of Brokers, too.
I and others are advocating for all future Brokers to have a Law Degree to practice Brokerage.
Furthermore, there would be a separate system for Broker review other than the Bar. Imagine a public administrative court system like Small Claims for Broker Malfeasance, knowing a violation there gets elevated to the Bar for futher review. With that, all Broker Malfeasance fades away quickly.
This is your opportunity to prove to the citizens of the US the Existing Independent and Regional Brokers can be trusted in a new system.
NAR is toast one way or the other.
Page updated
Report abuse