Got a sub2 lined up, got the purchase and sales agreement signed, and the seller promptly called the agent and told them to cancel the listing because they had it sold. now the agent wants 6%. No way thats going to happen from either party.
They cant find the listing agreement but supposedly they cant sell for 6 months after they cancel either. Thats what really hurts.
Its a remax agent in Georgia.
Any ideas? What can Remax do to collect?
I was going to do a straight deal taking title to my LLC. Now I think this is grand time to do a land trust. I chose not to do it this time due to time constraints and really pure lack of know how. I asked my atty previously if he could do this and he said he did land trusts quite often and knew how to do them.
Per Jim Mitchell the biker who buys houses (I am 20% done reading his course) I should put into a trust created by seller. Then transfer control of trust to me. At that point, if I understand right, nobody knows who runs the trust? This should prevent agent from pursuing commision right?
I posted an ad on a community forum and the seller contacted me. The agent was NOT involved at all. So I dont feel like I am cheating the agent. Seller has another home 600 miles away and is moving in 4 days regardless
Your seller will end up paying Remax 6% of the sales price!
If your sellers take the road we will not pay then Remax having a lot more time and money than most of us will file a lawsuit, and file a lien against the property, thus clouding the title.
The listing is a legally binding contract for representation in a real estate transaction so there is not much room to wiggle.
Just hope the judge does not unwind your Sub2.
Since the seller pays realtor fee’s it probable doesn’t matter what entity you do, however if it goes to court no entity will protect you from recieving a supena to testify in court.
When the seller has a listing with an agency (Remax) whether the agent is there or not if the property is sold they are legally entitled to the commission so the seller will have to pay it.
Your just going to have a property frozen in a lawsuit, with a clouded title and could be in court for years or the property could be ordered sold by the court to pay Remax’s legal fees and commissions.
I’d have to agree with GoldRiver on this one. Sorry, seller can’t just cancel the listing CONTRACT (notice its a contract) whenever they feel like. And how do you lose a super-important piece of documentation like a listing contract for your house! The only way they wouldn’t have to pay the broker commission is if there was a clause in the listing contract stating that: “if the seller found a buyer then they would owe no commission” but by the sound of it, the listing contract was NOT written that way. Basically the sellers are giving the broker the middle finger because they don’t know how this stuff works, so expect a fight!
REItobe is not a party to the real estate listing agreement. Unless he is going to be named as a party to a lawsuit, why would he want to volunteer to pay the seller’s sales commission.
It was a learning lesson, something I didnt know to be on the lookout for.
The agent was just told there was a buyer and automatically threw up the commission flag. When the agent arrived with the paperwork to cancel the agreement, the situation was explained and a very small commission was agreed on and paid.
As we all should know anyone can be named in a lawsuit… That doesnt mean they can be found liable however… Unless the Broker can prove that the buyer innerferred with their contract I believe that the buyer is not a rsk. However the seller is depending on the type of agreement signed… Out here in California all the broker would need to do is file a lis pends and tie up title and in most cases a simple telephone call to the title company will put a halt to a closing which is trying to close around an agent who has a legal right to commission.
With all that said this is a great task to practive someones skills…
A lawsuit will not tie up title in California, it has to be related to title and commission disputes are not title related. Even the tort against the buyer for interference would not qualify to hold title hostage via lis pendens because it is a money issue and not a title issue.
I am so not an attorney… MY experience is that a title company in most cases will not close on a transaction knowing that there is a commission due and where the seller is not authorizing it to be paid to the Broker.
However to confirm this I am going to walk into the First American Title Company (Americas Largest)office tomorrow and present them with this… I will ask them the legal whys and why nots and then post their answers.