Presentation on theme: "Bokusky v. Edina Realty, Inc.,"— Presentation transcript:
1 Bokusky v. Edina Realty, Inc., Agency RelationshipsA Little History About How Buyers Won The Right to Buyer RepresentationBokusky v. Edina Realty, Inc.,No CIV 223, 1993 WL (D.Minn. Aug. 6, 1993)
2 Once Upon A Time In A Land Far, Far away… in Edina Michigan The Final Frontier Buyers had NO rights!The law of the land was “Caveat Emptor” Let The Buyer Be-Ware!The evil Emperor “Darth Agent” had control over all buyers and sellersIt was up to our hero, Mr. Bokusky to defeat the evil “Darth Agent”After launching a class action law suit against Edina Realty the US District Court of Minnesota, in 1993, awarded nearly $20 Million Dollars to the plaintiffs.Buyers finally had rights and the evil domain of “Darth Agent” was shattered.But wait… we are rushing ahead of our story…
3 Part I The Beginning… A Visit to Edina Realty When Mr. Bokusky met with “Darth Agent” of Edina Realty…Mr. Bokusky thought he had an advocate by his side… a confidant, someone that represented him. Sadly that would not be the case.
4 Mr. Bokusky Searches for his New Home Mr. Bokusky set out to find his new home, with “Darth Agent”, fully believing that “Darth Agent” was his advocate.What Mr. Bokusky didn’t know was that a Federal Trade Commission report showed that nearly 75% of people interviewed by the FTC believed that they too were being represented by the agent who showed them the property they previewed and ultimately made an offer to buy.
5 Mr. Bokusky Finds His New Home After Mr. Bokusky found his new home he asked “Darth Agent” to write the offer and present the offer to the seller.The offer was presented and ultimately accepted by the seller.Mr. Bokusky closed on his new home and was as happy as a Jedi with a new light saber.
6 Mr. Bokusky Wants To Water His Lawn One day, Mr. Bokusky set out to water his lawn. He looked and searched and searched for the control valve to the sprinkler system. He absolutely remembered “Darth Agent” telling him that the home came with a sprinkler system.Mr. Bokusky called “Darth Agent”, asking where the sprinkler valve was located but “Darth Agent” had no clue. Sooooo
7 Part II . “Darth Agent” Discovers The Sprinkler System “Darth Agent” called the listing agent, who in turn called the seller to get the answer. The seller rushed to Mr. Bokusky’s new home with his trusty floppy eared friend Misa.The seller promptly uncurled a garden hose with hundreds of pin holes, stretching the sprinkler hose out across the lawn.Well, you can imagine the disappointment and perhaps even a bit of anger Mr. Bokusky was feeling about now.
8 Mr. Bokusky Hires a Lawyer Mr. Bokusky’s attorney sued Edina Realty & “Darth Agent” in a class action law suit, alleging over $200 Million Dollars in damages. Mr. Bokusky’s attorney won that law suit. The plaintiffs were awarded nearly $20 Million Dollars in settlement damages. The law suite marked the turning point for buyers. Buyer’s would now be treated as equals in a real estate transaction and thus Buyer Agency was given birth.Wait a minute, how did he get in this story?
9 Today, Buyers and Sellers are on Equal Ground in Real Estate Transactions In 1995, “Master Yoda NAR” revised the Realtor Code of Ethics to accommodate the new posture of Agency Representation.“Master Yoda NAR” teaches…. “Disclose your agency relationship you must… there is no try!”
10 Buyers have representation options in today’s real estate transactions Buyers can either elect to be represented by a Buyer’s Agent…Or…they can chose to be represented by someone other than a Buyer’s Advocate