Question #1
Question:
I signed a contract to sell my house with a real estate
broker, who located a potential buyer. The deal fell through when the buyer couldn't
complete the transaction. There’s a chance that this buyer might clear up his
financial problems and be able to buy my house in a few months. If I let my listing
agreement with my broker expire but go ahead and sell to this buyer, am I obligated to pay
the broker a commission?
Answer:
There’s a simple answer to your complicated question: Read your
listing agreement.
Typically, such an agreement provides that any consummated sale with a
prospect located by the broker results in a commission for the broker. If the buyer was
identified during the listing period, a sale occurring after the listing period expires
still requires that a commission be paid.
It always is important to read documents associated with the complicated
process of buying and selling real estate. You want to know what your obligations and
responsibilities are before you proceed, not figure them out after it’s too late.
Question
#2
Question:
I put my house up for sale and got an offer from a serious buyer
right away. After some back-and-forth negotiations, I accepted a $311,000 offer. Almost
immediately, another offer for $323,000 was submitted. Can I back out of the
first deal and accept the better offer? What are my options?
Answer:
It depends. You can only accept the better offer if you don't have a binding contract with
the person who offered $300,000. Under law, a binding contract exists when you have an
offer, acceptance and consideration. If, as it appears, you accepted the first offer,
you're probably stuck with it.
If you attempt to rescind the contract to sell at $300,000, the person who lost the house
can sue you. A judge could compel you to sell the house as agreed at $300,000 to the
spurned buyer. The judge also could award damages.
If you have an apparent contract, you might keep the second offer in reserve. If your
escrow falls through because the buyer can't get financing, for instance, you then would
be free to accept the second offer.
