Expiring Real Estate Contract Question

Updated on February 01, 2013
D.B. asks from Eastlake, CO
4 answers

The contract with my realtor expires tonight at midnight. There is a clause in the contract which states that buyers that looked at the house while under contract remain 'protected buyers' for 12 months. If they purchase the house, she gets the commision or share of if another realtor had brought them.

I emailed her this morning that we would not be renewing the contract. Around 11 I got a showing request (through Book a Showing) from another realtor in her office. The request was for this upcoming Saturday afternoon, after the contract has expired. I called the realtor who had made the request directly (know her personally) and told her that as tonight my house was no longer under contract. I decided to 'decline' the showing request, not wanting that tie to the real estate agency. But told her that if Saturday came along and the guy still wanted to view the house to give me a call. When I asked her how commisions would be handled in this situation, she mumbled and wouldn't say much of anything. But of course she and my realtor who I spoke with later suggested I extend the contract 3-4 days. Of course they did.

IF this person actually ends up buying my house, would I owe the original listing agent the commissions? It seems such a gray area. Of course, when or if any offer came in, I would have a RE attorney review it to make sure I'm not exposed to any risk. My old agent, when I spoke to her later in the day, said she'd give me protected buyers list on Monday I guess if this guys name isn't on there, I'm ok, right?

What can I do next?

  • Add yourAnswer own comment
  • Ask your own question Add Question
  • Join the Mamapedia community Mamapedia
  • as inappropriate
  • this with your friends

So What Happened?

I received the protected buyer's list, and the new showing request was not on it. This seems consistent with the contract which said she needed to bring the buyer and show the house while under contract.

Not that I think it will ever come to that because i don't think this house will ever, ever sell. Oh well!

More Answers

A.R.

answers from Houston on

Typically the original listing agent receives the commission for a certain period of time (example 180 days) after the contract expires. It protects the original agent from being used as a pawn. In other words sellers cannot use a listing agent to find a buyer, allow the contract to lapse and then sell to those buyers without the agent and hence without commissions. You will have to review the language carefully but the protection clause in one form or another is not uncommon. Good luck.

Smallavatar-fefd015f3e6a23a79637b7ec8e9ddaa6

J.C.

answers from Philadelphia on

If you are acting as your own agent then you set the terms. (The agent that brings you a buyer will get x%.). I can tell you from experience though that not one realtor bought a perspective client to my home when it was FSBO. Realtors really do not like that.

~.~.

answers from Tulsa on

Depends on exactly how the clause is written. If it says that showings booked during the contract are protected, then you were right to decline the request. If the clause only says clients that have been shown the house, then it wouldn't matter if you would have accepted the request or not. Also, does the clause allow you to refuse showings?

I think you did the right thing by declining the request and not renewing or extending the contract.

Smallavatar-fefd015f3e6a23a79637b7ec8e9ddaa6

S.W.

answers from Amarillo on

I can't give you specifics since I no longer work in the the field and you are in a different state that I was licensed.

Contact a lawyer who specializes in real estate for a consultation. If it costs you a few dollars it will be less than what you would have to pay for the commission.

Since you did not feel right about what was about to do down you did the right thing. Sometimes feelings are better than you know.

Good luck to you in selling your home.

the other S.

For Updates and Special Promotions
Follow Us

Related Questions