When a Listing Expires..... - Posted by Louis

import · October 25, 2000, 9:12pm

Posted by B.L.Renfrow on October 25, 2000 at 22:37:22:

Good grief…if that seller doesn’t develop a spine pretty quickly, they’ll have far bigger problems than a PO’d Realtor!

I might sit down with them and go over their listing agreement in detail. That will spell out the terms and conditions to which they are obligated, and may put their minds at ease.

Remember that the Realtor works for the seller…and the seller can cancel the listing and “fire” the Realtor at any time, no matter how much he intimidates them.

It is true that most listing agreements do contain a provision entitling the broker to a commission on any sale taking place within a certain period of time after the listing expires…but a sale to someone brought into the transaction by or because of the Realtor. Thus, a sale to someone contacted by the seller, who was not shown the home by an agent and had no contact with an agent, would NOT require the payment of a commission if it took place after the listing expired.

Of course, the reason for this provision is to prevent a buyer who, having been shown the house by or because of an agent, waits for the listing to expire and then goes directly to the seller. That’s not right either. But that’s not the situation you describe.

I would not contact the Realtor myself. What I would do, after explaining in detail to the sellers their alternatives, is strongly suggest they call him ASAP and cancel the listing. If they can’t bring themselves to do that, and the deal is worth it, just be prepared to move when the listing expires. Most lenders won’t actually start foreclosure proceedings until the payor is at least 3 payments behind, so you probably have some time…though I might not go out of my way to tell the sellers that.

I have signed agreements with sellers in two cases immediately following the expiration of a broker’s listing. However, in both cases the sellers had contacted me. Had I become aware of the house because of the listing, or a broker’s sign, they could have made a legitimate argument of being entitled to a commission. But that was not the case…and we all knew it. I never heard a word from the brokers in either situation.

Brian (NY)

import · October 25, 2000, 9:12pm

When a Listing Expires… - Posted by Louis

Posted by Louis on October 25, 2000 at 21:12:08:

Is there anything that I or the seller has to be worried about as far as the Realtor is concerned?

First off, I never was shown the house by the Realtor, that’s fact!

I didn’t find the house due to signs or ads, the seller called me from my ad, and the Realtor knows nothing about me as of yet. The house was previously listed for 60 days without a sale and somehow he convinced them to grant him a 30 day extension. They gave it to him because they didn’t know what to do. It was just days after that when they contacted me and really were happy when I told them what I could do for them.

Now this listing still has about 3 weeks left on it and the seller says that he is going to be asking a lot of questions as to why they won’t relist. Imagine that! The seller says that this guy knows all of the legalities involved in this and is worried that the Realtor is going to still be entitled to some kind of commission if they sell to me AFTER the listing expires.

These people are so worried and this Realtor has them scared to death! I told them the listing expires, he’s out! He had it for 90 days with no results! You are going to be 2 payments behind and he’s not going to make them up! You are on the title of that house and you make the payments! You will lose the house and your credit rating also if this goes into foreclosure!

They are still afraid of this idiot Realtor! He tells them he has a lot tied up in advertising and makes them believe he has to sell the house to recoup the ad costs!

What can you guys suggest that I can do to get rid of this guy? Can I talk to him or should the owners?

They really want to sell to me! They are about to go 1 payment behind on the 1st and by the time the listing expires it will only be about another week before payment #2 goes in default!

Please Help!

import · October 26, 2000, 11:27pm

Re: When a Listing Expires… - Posted by Rajen (ga)

Posted by Rajen (ga) on October 26, 2000 at 23:27:10:

I thought a seller, if he/she faces foreclosure, can cancel the R.E. agreement with a realtor anytime without any concequences.

import · October 26, 2000, 11:23pm

Re: When a Listing Expires… - Posted by Rajen (ga)

Posted by Rajen (ga) on October 26, 2000 at 23:23:12:

I thought a seller can cancel the R.E. listing anytime when he/she faces foreclosure. And being behind in payment is the beginning of the foreclosure.

import · October 25, 2000, 11:36pm

Re: When a Listing Expires… - Posted by dewCO

Posted by dewCO on October 25, 2000 at 23:36:07:

Brian is right. YOU need to stay out of it with the realtor and seller needs to keep mouth shut about you. If they can’t fire the agent, then wait until it expires.

You might “lend” them the money, to keep it current if there’e room in the deal, with a signed 2nd of course, that you don’t have to record unless they go hinky on YOU, if they can’t get out of it with the agent, if they absolutely can’t wait, and that would help them keep their credit up. Just cover your butt with the note being due a few days after the listing expires, then you can rip it up after they deal with you.