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We live in a rural area in GA with a higher end new home and acreage for sale. Realtor 1 had not shown house and we had no contact for several months. Followed her advice on listing price and several other issues. Listing agreement expired Dec 31. Since Realtor 1 had not shown much interest, we decided to relist with an agent that had shown interest that we had a good rapport with. Made appointment with Realtor 2 to sign listing agreement and get photos, etc. on Tuesday, Jan 4, 3pm. Realtor 1 called and wanted to show house to out of state buyer Jan 4, 10 am, we agreed.
House was shown, I received a phone call at 2 pm from Realtor 1 that we had an offer with a contingency of their house selling, etc. Pre approved loan etc, but want to pay cash to avoid closing costs. Understandable.
Realtor 2 came at 3 pm, we informed him of pending offer, told him we wanted to list with him if we did not get a contract. He was very gracious and understanding of the bizarre timing.
Realtor 1 is dual agent at this point, conveys offer, we accept price, counter offer with no contingency, 10,000 earnest money, closing in June to give them a chance to sell their home. They agreed. Next day, when Realtor 1 is supposed to be bringing out contract to sign, she calls and says that buyer has changed mind and doesn't want to lock in 10 grand and a closing, but loves the house and wants to come out and look at it again- right now. We agree, Realtor 1 and buyers arrive. Realtor 1 stays for about an hour, then leaves potential buyers at our home with us for 2 more hours. I am exhausted at this point. They again reiterate how much they love the house, want us to take off the market etc. and reiterate our previous offer- large binder with a set closing date is the only way we will take the house off the market. They wouldn't agree, but we all shook hands and ended everything on good terms. Did not hear back from Realtor 1 again at all.
Talked to Realtor 2 last night, he agreed to list house and is bringing out listing agreement etc.. I call Realtor 1 and tell her how much appreciate all she did trying to get the deal together, that we are listing with a different agency. She was not especially happy and told me she wants to retain the clients she brought (understandable) and that the client called her again last night trying to work things out. She gave me the impression she expected full commission when and if the house sold to these clients.
How exactly does this work? We are listing with a new agent, Realtor 2. We have nothing in writing from Realtor 1, I have no desire to short her out of her commission with her potential buyer, but IF her clients eventually end up buying our house, wouldn't she split the commission with Realtor 2?? Does she have legal right to full commission since the listing expired and we relisted with another agency? Sorry this got so long- I just want to do the right thing for everyone involved. Thanks for any insight!
I don't think that Realtor #1 is owed commission on both sides as the property was shown after the listing agreement expired, in other words a split. If Realtor #1 expected both sides of the commission, I think he/she should have had you sign an "Authorization to Show Unlisted Property". That form documents the prospective Buyer and the "expected" commission. I usually use this form for showing for sale by owner listings.
It would be different if Realtor #1 showed your house before the listing expired and had a "Protected Period: or Safety Clause (page 3: 7(C) of the Georgia Association of Realtors Exclusive Listing Agreement). It basically states that after "x" number of days from the expiration period of the listing agreement, that the commission structure still holds true.
If the Buyers come back with Realtor #1, I would just direct them to Realtor #2 who is representing you.
I think the commission is going to be a split. You don't have contract at this point and our contract voids the agents protection period once the property has been relisted. However, that being said you may want to express your concerns to agent #2 and have them addressed and possibly check with a local real estate attorney just to be safe.
Um, isn't dual agency not allowed in Georgia? (designated agency is - that would take 2 different agents from the same brokers office)
I do agree with George on the "Showing Unlisted Property" form, since realtor #1 would be considered the listing agent, rather the buyers/selling agent. Realtor #1 is showing the home to a new prospective buyer AFTER the listing agreement expired. They should only get a commission from the buyer side of the table.
Who knows - you may list with Realtor #2 and get a 'can't refuse great offer' before Realtor #1's clients agree to your terms!
Here in Florida it would depend on if you excluded the buyers she brought from the listing contract you signed with the new Realtor®. If you did, then she would get the 'full' thing, although at this point, since she did not have you sign a right to show and commission agreement, she's got nothing...she *should* have had you sign an agreement that you would pay a commission at all since the listing had expired. She also should have had you sign something that you are not represented or that you are and the buyer isn't. That's how it's done here anyway, unless we are a transaction broker. Don't know about Ga. You really have to read your listing agreement...how long a protection period is, when it begins, how does it 'carry over' if at all.
As stated above, from the time you signed a new listing agreement she should be contacting the listing agent for information/appointments, etc.
Dear Tenacwalker, you have to pull your copy of your listing agreement with agent1 and check section under COMPENSATION to verify what is indicated about the terms agreed between you as a seller and the listing broker.
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I am exhausted at this point. They again reiterate how much they love the house, want us to take off the market etc. and reiterate our previous offer- large binder with a set closing date is the only way we will take the house off the market. They wouldn't agree, but we all shook hands and ended everything on good terms. Did not hear back from Realtor 1 again at all. 
