Blog: Wall Streeters Try to Bilk Broker out of Commission

Hamptons Marketwire blog says notes asked homeowner to cut out the real estate agent from an all-cash deal.

Want a high-end rental in the Hamptons but don't want to shell out a broker's fee? You could look for broker-less listings — or you could enlist a broker, then screw him out of his commission.

At least, that's what two men tried to do recently before being called out by a Southampton attorney, according to hamptonsmarketwire.com.

The real estate blog states that the men — one works as an attorney for a Wall Street investment bank and the other is a portfolio manager for a real estate hedge fund — contacted Rosehip Partners in East Hampton to find a Hamptons rental they could use as a summer share house.

After spending a Saturday afternoon showing the men seven potential rentals, the real estate agent got a call from a Southampton attorney the following morning who said the men left behind two notes at one of the homes, trying to cut the broker out of the deal, according to the blog.

The first note, left on the kitchen counter, stated that they wanted to rent directly from the owner, and the second, slipped under the front door, explicitly said "no brokers/agents" and "ALL-CASH," hamptonsmarketwire.com reports.

The blog says the agent stood to lose $3,000 by being cut out of the deal.

Read the post at hamptonsmarketwire.com.

Richard Warden April 09, 2013 at 08:21 PM
This was definitely a sleeazy move by these two characters. But this should also be a note of caution to other real estate agents and brokers to get a little signature before giving out addresses and doing the house tours. The original article states, "In good faith the agent who received the lead responded promptly to their requests."
muskrat April 10, 2013 at 12:42 AM
I just had someone try to cut out the broker today in a rental too. It's unfortunately not unusual. A few years ago I had a husband come to me outside where I was working to try to cut a deal while his wife was being shown around inside by the unsuspecting broker. Today it was somone's assistant calling for the second time hoping to arrange for her boss to rent directly from me and cut the broker out. In both cases I said no dice. I don't need dishonest people in my house, especially if something goes south.
GOLD FINGER April 10, 2013 at 12:54 PM
Just use VRBO.com guys and you cut out the sleazy money grabbing brokers out here. Great website and all rentals by owners only. NO COMMISSIONS !!! Tons of beautiful homes and at great rental prices !!!
Juss Bean Honest April 10, 2013 at 01:15 PM
I think people like this don't stop and think of the fact that their own business is client-driven. What if the lawyer's clients refused to pay him? What if the portfolio manager stopped getting commissions on trades? What makes their own work more worthy than the brokers work? People don't think this stuff through.
Fran April 11, 2013 at 07:53 PM
What makes these two dishonest chaps think they can bribe with their cash. Take your cash somewhere else..Don't need your sleazy types out here.


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