Realtor sues Seller based on hypothetical offer (agents, agreements, listing)
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It's keeps getting more interesting...This same 'sales associate' was the transactional broker for a spec home I was to build. (He was the listing agent for the builder, then was the transactional broker when he negotiated the deal). I inadvertantly didn't get the financial commitment letter to the builder within the 20 day. So, per the contract the builder declared the agreement null and void. My earnest money is to be released to me but the builder said he will keep my 'upgrade money' which is $5,000. He claims he's entitled to it as a 'change order' per the contract. However, in the special stipulations section it only states: "buyer to provide funding of upgrades per the following schedule:"
The builder has only poured the foundation on the house.
Now, the 'sales associate' via his attorney that I owe him 6% commission on the builders home because I caused the deal to fall through. My attorney states I owe the sales associate nothing because the builder, per his contractual rights, declared the contract 'null and void' - meaning as if the contract never existed. In fact, this reinforces the builder returning my $5,000 upgrade.
It's keeps getting more interesting...This same 'sales associate' was the transactional broker for a spec home I was to build. (He was the listing agent for the builder, then was the transactional broker when he negotiated the deal). I inadvertantly didn't get the financial commitment letter to the builder within the 20 day. So, per the contract the builder declared the agreement null and void. My earnest money is to be released to me but the builder said he will keep my 'upgrade money' which is $5,000. He claims he's entitled to it as a 'change order' per the contract. However, in the special stipulations section it only states: "buyer to provide funding of upgrades per the following schedule:"
The builder has only poured the foundation on the house.
Now, the 'sales associate' via his attorney that I owe him 6% commission on the builders home because I caused the deal to fall through. My attorney states I owe the sales associate nothing because the builder, per his contractual rights, declared the contract 'null and void' - meaning as if the contract never existed. In fact, this reinforces the builder returning my $5,000 upgrade.
Have fun. I'm sure there's another side to this and information that I don't know so I'll just let the professionals sort it out. I would be interested in learning the outcome of the whole sordid affair.
Also, be careful what you put on the internet. It could be found and used against you by the other side possibly.
I'm in Tennessee. I signed a listing agreement to sell my home. Two days later the 'sales associate' and I have a verbal disagreement over the phone because he sticks a sign in my yard without my permission (he failed to communicate with me on when we would begin the advertising). He proceeds to say he won't work with me and will go to his agency owner to resolve this and I say 'so be it'. Later that day he sends me an email like nothing happened. So on our next phone conversation he ask,"If I bring you a full price offer will you accept it?" And I state,"Not from you". Now, he has filed a lawsuit stating I have 'withdrawn my house from the market' thus his full 5% commission has been earned'. My house was not on the MLS, he had never shown my house, taken pictures, nor advertised it, nor brought any offers or a ready, willing and able buyer. My attorney has written three letters to the broker-owner asking for another sales associate. Their only response was the lawsuit.
The local Real Estate association won't help because it's in litigation and I'm about to contact the TN Real Estate Commission for their advice. So, who's right? Did I breach the contract with my statement. Is their any Case Law on this? I'm hopeful of a quick method to resolving this 'fiasco'. I appreciate your educated responses.
one thing i can suggest is read your listing agreement contract. in massachusetts there is a box to check in the listing agreement contract giving the agent permission to put a sign on the property. if this box is checked (again massachusetts) then the agent can put a sign on the property immediately after the listing agreement contract is signed.
I'm in Tennessee. I signed a listing agreement to sell my home. Two days later the 'sales associate' and I have a verbal disagreement over the phone because he sticks a sign in my yard without my permission (he failed to communicate with me on when we would begin the advertising). He proceeds to say he won't work with me and will go to his agency owner to resolve this and I say 'so be it'. Later that day he sends me an email like nothing happened. So on our next phone conversation he ask,"If I bring you a full price offer will you accept it?" And I state,"Not from you". Now, he has filed a lawsuit stating I have 'withdrawn my house from the market' thus his full 5% commission has been earned'. My house was not on the MLS, he had never shown my house, taken pictures, nor advertised it, nor brought any offers or a ready, willing and able buyer. My attorney has written three letters to the broker-owner asking for another sales associate. Their only response was the lawsuit.
The local Real Estate association won't help because it's in litigation and I'm about to contact the TN Real Estate Commission for their advice. So, who's right? Did I breach the contract with my statement. Is their any Case Law on this? I'm hopeful of a quick method to resolving this 'fiasco'. I appreciate your educated responses.
Does the listing agreement agree to having a sign in the yard?
Location: Mokelumne Hill, CA & El Pescadero, BCS MX.
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I've always been of the opinion that in a bilateral contract, each side makes a promise to the other. In the agents case, it's to produce an offer acceptable to the seller, in the seller's case, it's to pay the agent.
It seems to me the agent hasn't earned the right to his commission unless he has produced the offer acceptable to the seller.
Silverfall: That's the main lesson I've learned is attain a 'buyers agent' and always allow a real estate lawyer to review your contracts before signing them!
I inadvertantly didn't get the financial commitment letter to the builder within the 20 day.
So, if you wanted the house still, why didn't you just get the committment letter to them and follow through with the rest of the contract?
Quote:
I'm sure there's another side to this and information that I don't know
Yeah, I think so too.
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