Read through this , - Posted by Frank Chin
Posted by Frank Chin on July 20, 2005 at 08:32:25:
Here’s a link for NYS:
I understand the part about the seller has “no written listing agreement” with the broker. I’m not clear how or why the initial viewing was done as you said “viewed the place with the so-called broker”
This is a vital point. Why would the broker be present unless the broker is there to introduce the buyer with the seller??
Then there is another common practice. Broker introduces buyer to the seller. Seller doesn’t want to pay the commission, and tells the buyer to come back later to talk.
Then the conversation goes like this. Seller says “why don’t I make excuses not to sell till the listing expires”, or “why don’t you wait a few months and come back and wrap this thing up”.
I learned of this first hand some years ago.
A broker was taking me to see a property, which I eventually closed on, but on the way into the house, she started yelling and screaming at a man outside talking to the seller. We went back to her office a few blocks away whereupon she called the seller. When she hung up the phone she explained that the seller admitted that the man he was talking to (the broker bought this man over earlier in the day) asked the seller to make excuses not to sell thru this broker, wait for the lisiting to lapse, and then close the deal cutting the broker out.
I was a little curious, so spoke to my attorney about this. He told me he’s been involved in several lawsuits where this very thing happened. He explained that if the broker had any part in introducing the buyer and the seller, and even if excuses are made in the meantime, but later on the parties came to an agreement, a case can be made that a commission is due.
The very fact that the seller wants you to sign some agreement says to me that there’s somethign fishy.