Posted by Chenel Moore on January 29, 2000 at 11:45:01:
OK, This is my take. I am an agent in MD. Relax. Enjoy the game. That’s what the broker is playing. Remember, he is counting his proceeds just as you are counting yours. He offered you a 7% commission rate with a very weak package. His buyers have only been prequalified. As you were informed that means nothing.
You need the LOAN APPROVED for any type of deal to transpire. So he is definitely playing a game with you.
You have had some very good advice, but ONE thing you cannot do. You cannot contact the buyers later on without getting involved into a little bit of a legal mess. Legally, they have a buyer’s broker representation agreement that if they decide to buy any of the houses that the broker showed them (yours included) during their contractual term, then a commission is due. Now here is where you can get yourself into trouble, although the buyers signed the agreement and legally they owe the commission, if this broker were to sue someone, the rule of thumb is to sue the person who has the money, i.e. the seller or you. Brokers don’t waste their time suing people that don’t have money. So they rarely sue buyers. Legally you can always countersue and all that good stuff, but who wants to be involved in a potential legal mess? Not us investors, that’s for sure.
As with any contract violation possibilities, I recommend that you consult with your real estate attorney over this matter if you want to cut the broker out of the agreement completely. Otherwise, I would just counteroffer as you were advised with 3% commission and NO closing assistance with the property to sell in as is condition with no home owners warranty. Legally you may or at least you should have to disclose or disclaim about the condition of the property. So you should make sure that you inform the buyers that they are buying in as is condition (just in case something pops up during a home inspection) with your disclosure or disclaimer that you have on the property.