PLEASE HELP!!!! - Posted by Chris

Posted by Sandy on August 22, 2001 at 13:07:15:

I always include that if I sell the house I will pay the realtor 1% for their advertising expense. I also cancel the contract before signing the new agreement with the buyer. If the realtor does not bring you a buyer then they have not earned their commission.

PLEASE HELP!!! - Posted by Chris

Posted by Chris on August 22, 2001 at 10:08:22:

I have a property that’s been listed with an agent for 3 months now. I am out of state and don’t “hear” the responses I was hoping for. The house is VACANT which means I am footing the bill every month. We signed a 3 month listing agreement with this agent. Now here is where my question comes in. I purchased Bronchick’s course a few weeks back and I have an interest in L/O’ing this property to somebody. IF I am able to get this interest party under a L/O agreement am I responsible for paying a comission to a broker? In discussing this with my wife she CALLED the broker and asked this question of them. They said they needed to ask their manager and would get back to us. The agent called back a few minutes later and said yes we would have to pay comissions to her. My wife said even if we don’t sell the house for 1 - 3 years AFTER our agreement? The agent said again YES, you can call and speak with my manager this afternoon as he/she is out of the office now. Hmm… My gut feeling is that we are NOT obligated to pay her comissions here… are we??? Someone please provide feedback.

feel free to e-mail me also christopher_sanchez@hotmail.com

Re: PLEASE HELP!!! - Posted by Anthony

Posted by Anthony on August 22, 2001 at 16:22:40:

Where is the property? How much is it listed for? I might have someone for it if it is in L.A. CA

Re: PLEASE HELP!!! - Posted by Chris

Posted by Chris on August 22, 2001 at 11:36:48:

I meant to state that I signed a 6 month agreement. I will have to review my contract to verify what my contract states. I appreciate everyone’s help! Would it be out of line to say “I love you”? Just kidding but thank you very much!

A REALTOR Response - Posted by Matt (OH)

Posted by Matt (OH) on August 22, 2001 at 11:25:03:

Chris,

First things first. Review your listing agreement. It spells out how and when you pay a commission. Most listing agreements state that you are willing to accept payment as follows such as FHA, VA, Cash, Conventional, or for any other price, terms or exchanges to which owners may agree in writing.

What this says is that if the property is still listed and you decide to accept a land contract, lease purchase, etc you still owe a commission and you owe the commission at the time you agree to the lease option not in 2 or 3 years when the lease options matures.

Of course this all depends on your relationship with the right REALTOR. Even then the Brokerage has the final say.

Sorry for the bad luck you are having with your current Realtor. I would be glad to refer you to a REALTOR that will do you a good job. Email me back or drop me a call at 419-280-1394.

Re: Okay, okay… - Posted by Ward-CA-

Posted by Ward-CA- on August 22, 2001 at 10:31:19:

I have a property that’s been listed with an agent for 3 months now. I am out of state and don’t “hear” the responses I was hoping for. The house is VACANT which means I am footing the bill every month. We signed a 3 month listing agreement with this agent. Now here is where my question comes in. I purchased Bronchick’s course a few weeks back and I have an interest in L/O’ing this property to somebody. IF I am able to get this interest party under a L/O agreement am I responsible for paying a comission to a broker? In discussing this with my wife she CALLED the broker and asked this question of them. They said they needed to ask their manager and would get back to us. The agent called back a few minutes later and said yes we would have to pay comissions to her. My wife said even if we don’t sell the house for 1 - 3 years AFTER our agreement? The agent said again YES, you can call and speak with my manager this afternoon as he/she is out of the office now. Hmm… My gut feeling is that we are NOT obligated to pay her comissions here… are we??? Someone please provide feedback.

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Chris, just look at your listing agreement. It will spell out the type of listing it is, how long it is to run and whether any people they were instrumental in showing it to are covered for a certain period after the listing expiration. But in no case can it run for years. That would be thrown out of court as being overreaching.

Most listing agents huff and puff trying to bluff you to stick to your listing agreement. But it?s quite rare for an agent to actually sue you for breaking the listing early. They want your neighboring owners to think of them as fair and friendly, certainly not litigious. Otherwise no one else would dare sign a listing with them ever again.

Go talk with the agent?s broker. She will have a more overall view and probably more conciliatory than the listing agent.

By the way, the next time only sign an ?Exclusive Agency? listing, not an ?Exclusive? listing.

Good luck.

Re: PLEASE HELP!!! - Posted by Tim Fierro

Posted by Tim Fierro on August 22, 2001 at 10:28:01:

No you do not have to pay your agent.

If the listing has expired, then don’t worry about it. What they would get is if someone that learned of the property from their marketing effort buys it, they would get the commission. If you find the buyer on your own, they get nothing.

What you want to do if the listing is still active is to get a release from them. If they do not give it to you, then let it expire.

Now if you place an ad in the newspaper and find a buyer on your own and do a L/O, the actual purchase might be 2 or 3 years down the road. You could build in the agent’s commission into it and he would get paid when the home actually sells.

I would shoot for the release as the primary goal.