Working around the Realtor? - Posted by Mike (IN)

import · February 19, 2002, 11:54am

Posted by jim on February 20, 2002 at 22:55:45:

Exactly my point!! Very well written; I could not have said it better.

import · February 19, 2002, 11:54am

Posted by Mike (IN) on February 19, 2002 at 12:54:00:

I have a motivated seller that wants me to buy their home. It is listed with a realtor and the listing expires April 13th.

Is it OK to negotiate and sign all the paperwork for a Lease/Option NOW with the seller as long as the EFFECTIVE date is after April 13th with a clause to VOID the contract if the listing agent sells before the listing expires?

import · February 20, 2002, 4:46am

“Call me after the listing expires.” - Posted by JoeKaiser

Posted by JoeKaiser on February 20, 2002 at 05:46:42:

If a seller calls on my ad and tells me his property is listed, I tell him to call me back once the listing has expired.

I’m not trying to beat out the agent, I’m just not interested in paying a commission on a property where the agent had no bearing on the sale.

And yes, I do care about whether or not the seller owes a commission, because 99 times out of a hundred, the commission is paid with the money I give the seller, and I try real hard not to make a habit out of giving the seller that kind of money.

Joe

import · February 19, 2002, 8:03pm

Re: Working around the Realtor? - Posted by Jack

Posted by Jack on February 19, 2002 at 21:03:55:

How did you find this property? If the “For Sale” sign in the yard with the Realtor’s name on it was the reason that you found this house, then the agent was the cause of the sale and the seller is legally bound to pay commission, even if the listing has expired if the house sell to someone who found it when it was listed. Now, will the agent ever find out, probally not, but that is why you never sign the book at an open house. Large R.E. companies have people who check buyers on expired listings to see if any people who visited later bought the house after the listing expired. When they find them, and they do, they can go after the seller for commission owed, and it is owed. Realtor spent his money, attracted a buyer.Why do you care if the seller has to pay a commission?

import · February 19, 2002, 3:11pm

Re: Working around the Realtor? - Posted by Brent_IL

Posted by Brent_IL on February 19, 2002 at 16:11:58:

How about the seller giving you an option to purchase with specific terms (your purchase contract) at some time post-listing?

You can add a clause giving him the right to cancel prior to closing by paying you a negotiated sum as liquidated damages. He is then free to accept another offer.

If you?re going to wait around until April 14th, you may as well get paid for it.

import · February 19, 2002, 2:48pm

Re: Working around the Realtor? - Posted by bob

Posted by bob on February 19, 2002 at 15:48:54:

Somebody is going to have to pay the commission!!! Just wait untill the listing expires.

import · February 19, 2002, 1:46pm

Re: Working around the Realtor? - Posted by Scott

Posted by Scott on February 19, 2002 at 14:46:09:

How on earth could we advise you if you would violate the broker agreement by entering into a contract with the seller? You need to look at that agreement. I’ll bet it prohibits you from entering into another contract for the property.

Besides, what if his realtor brings the seller an offer (cash or L/O, which would you take if you were selling?)? Are you going to sue the seller for breach of contract? I doubt it.

import · February 19, 2002, 9:45pm

Re: Working around the Realtor? - Posted by jim

Posted by jim on February 19, 2002 at 22:45:32:

Jack gave an excellent answer and told it like it really is. I should add that even if you did not attend any open houses at this house or find the listing with the help of the realtor and his sign, the realtor is still owed a commission on any contracts signed during the listing period.

import · February 19, 2002, 3:15pm

Re: Working around the Realtor? - Posted by Kent

Posted by Kent on February 19, 2002 at 16:15:38:

It sounds to me that everyone responding has not understood the question. The way I see it there should be no problem with what you are doing because you are honoring the Realtor’s contract with the clause cancelling your contract if the property sells before the expiration of their contract, and by making your contract effective on the date of expiration of Realtor’s contract with the seller. Where is the problem with that?

import · February 19, 2002, 1:59pm

What??? - Posted by Mike (IN)

Posted by Mike (IN) on February 19, 2002 at 14:59:55:

I never said anything about sueing the seller for breach of contract. I said that I would make have a Lease/Option with the Seller to be effective AFTER the listing expires so that IF the Realtor could not sell before the listing expires, it’s mine. I’m just “tying” up the property so that I’m next in line after the Realtor…knowing full well that their agreement comes first.

If the realtor sells before the listing expires, that’s OK because we know upfront that the Realtor’s contract comes first. Tying it up to be next in line just gives me time to market it for AFTER the listing expires. (which it probably will…a Realtor has not been able to sell for over 1-Year!)

import · February 20, 2002, 6:35am

Bull - Posted by Mike (IN)

Posted by Mike (IN) on February 20, 2002 at 07:35:42:

The realtor only deserves a commission if he/she sells or attracts the sale. The seller called me because they saw my bandit sign. Realtors have not been able to “Sell” the home for almost 1year. If I work out a deal where I tell them I’ll buy after the listing expires, the realtor deserves NOTHING!

import · February 20, 2002, 1:18pm

Re: Bull - Posted by Boberto

Posted by Boberto on February 20, 2002 at 14:18:32:

Couple of things jump out here -

What a realtor “deserves” as opposed to what’s in the contract the seller signed is a moot point. Until the listing expires, the realtor is due a commission whether you think they deserve it or not. And Judge Wapner will agree with the realtor if your seller wants to take it that far.
Anything listed for over a year reeks of a bad deal looming - perhaps its overpriced or the seller is unrealistic about some things; perhaps there are serious property defects…who knows. Once your seller takes the property off of MLS, ask why…it may not be the realtor’s “fault.”

import · February 20, 2002, 8:32am

Re: Bull - Posted by Tom (GA)

Posted by Tom (GA) on February 20, 2002 at 09:32:45:

Maybe yes, maybe no. If you sign a contract during the listing period on an exclusive right to sell listing, the realtor gets the commission.