Open Letter to the Real Estate Commissioner

Commissioner Lowe,

Over the past years, the influx of bank owned homes coming to the real estate market has changed not only the market itself but the business of selling real estate. Lenders with roots in all 50 states routinely require addenda overriding the Arizona Association of Realtors contract in favor of more universal language.

At the same time, real estate agents listing these homes for sale have started to add their own requirements before an offer can be submitted. Without these so-called “mandatory” addenda, listing agents will not present an offer to the lender for consideration.

If these addenda were mandated by the seller, that would be understandable. But in many cases, these addenda are created out of whole cloth by the listing agent without regard for whether the seller is requiring their use. It is my opinion that this violates R4-28-802 (b) of the Arizona Administrative Code which requires that

During the term of a listing agreement, a salesperson or broker shall promptly submit to the salesperson’s or broker’s client all offers to purchase or lease the listed property

For instance, there is one brokerage that will not present offers to its lender, Fannie Mae, unless “mandatory” addenda relating to the listing brokerage are completed; these are not being required by any other Fannie Mae listing agent.

Further, bank owned listing agents have created technological systems to process the offers they receive and often will not accept valid offers submitted in any other manner. One in particular requires the buyer to pay a $300 processing fee to the listing agent for use of the system should the buyer’s offer be accepted; an offer submitted via any method other than this system will not be presented.

Barring specific written instructions from the seller, this again appears to violate the above-mentioned portion of the Arizona Administrative Code which requires offers to be presented to the seller without mention of the method through which these offers need to be submitted.

At its heart, the real estate marketplace should be about the buyers and sellers and not about the real estate agents themselves. While there’s little that can be done about the actions of the lenders, it is my hope your office will take steps to prevent the real estate listing agents from continuing to erect administrative road blocks and create unnecessary hoops buyers must jump through in order to purchase a home.


Jonathan Dalton

Jonathan Dalton

Jonathan Dalton is a 40-plus-year resident of the Valley and has been helping folks buy and sell homes since 2004. He can be reached at 602-502-9693 or info at


  • Another Investor 7 years ago

    This letter sould be copied to Fannie Mae.  Not sure they would be happy about the listing agent’s $300 fee.

  • Joshua Hill 7 years ago

    Bravo, bravo! The industry needs more agents like you, Jonathan, and the commissioner needs to see more blog posts like this one.

Comments are closed.