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Ok, I signed a contract to sell my home by a real estate agent and the contract expires on April 1, 2019. I don't fully understand what it states on the contract about me selling my home privately within 90 days after expiration date of April 1. Contract states (in less and somewhat my own wording), "I the seller further agree to pay the 5% commission to my real estate agent if I sell my home privately within 90 days after April 1, so long that the buyer was introduced to or shown the property FROM ANY SOURCE WHATSOVER during the 2 month listing period that expired on April 1.
My cousin and his wife wants to buy my home and I informed my real estate agent on Feb 25. Am I considered "FROM ANY SOURCE WHATSOVER" during the listing period or does any source whatsover only mean my or another real estate agent and not me the seller? Does this mean I have to pay the commission if I sell my home to my cousin if i'm considered "any source" who showed them the house before April 1 OR will I only pay commission if my or another real estate agent showed them my house before April 1 which he or they never did?
HERES the exact wording as shown on the contract-
The seller further agrees to pay such commission if an agreement to purchase is agreed to or accepted by the seller or anyone on the seller's behalf within 90 days after expiration of the listing period(holdover period), so long as such agreement is with anyone who was introduced to the property from any source whatsoever during the listing period or showed the property during the listing period.
Is the seller considered A SOURCE who showed the buyers the home or can A SOURCE only be a real estate agent? If a seller is also considered a source and I have to pay my agent the commission if my house is sold within 90 days after April 1, if they buy my home lets say 120 days after April 1, will I still have to pay commission? I informed my real estate agent by email within listing period on Feb 25 that my cousin wants to buy my home and for my agent to change expiration date to April 1(my agent agreed to end my contract sooner due to certain reasons). My real estate agent informed me on Feb 25 that I do not have to pay him commission if my cousin buys my home after April 1, but he either doesn't know or may be lying to me, thats why I need to know if I as a seller is considered a source who showed buyer the home because my agent confused me by saying I don't have to pay him commission, so then that means me as a seller is not a source that showed buyer the home??????? and that only real estate agents are considered a source??? See why i'm confused about this?
You are asking a question that involves interpretation of a contract and that question should be asked of an attorney. As a non-attorney, it appears to me that “any source whatsoever” is about as all-encompassing as it gets. However, if your cousin was “introduced to the property” prior to the listing period, then I doubt an attorney would tell you that you are on the hook.
If you don’t want to spend the money for a legal consultation, make an appointment with your agent’s broker, go see him/her, get his/her answer to the question and get it in writing. Then proceed as appropriate for your goals.
You are asking a question that involves interpretation of a contract and that question should be asked of an attorney. As a non-attorney, it appears to me that “any source whatsoever” is about as all-encompassing as it gets. However, if your cousin was “introduced to the property” prior to the listing period, then I doubt an attorney would tell you that you are on the hook.
I don't fully understand what you said, YES my cousin was introduced to my home BEFORE the listing period (he was thinking to buy it before I signed the contract but did not agree to until during the listing period). I still don't fully understand what you said--- “any source whatsoever” is about as all-encompassing as it gets.However, if your cousin was “introduced to the property” prior to the listing period, then I doubt an attorney would tell you that you are on the hook." -----you mean you don't think an attorney would tell me i'm on the hook to pay that commission if my cousin buys it on april 1 or im off the hook of paying that commission? Thanks for your reply but you also confused me like my agent did.
My real estate agent is still able to sell my home between now march 2 til march 31, if he sells my home during that time period I pay him commission and very happy to do so. When contract expires on april 1, if agent did not sell my home and I sell it to my cousin my agent and the broker as well informed me I do not have to pay my agent commission. (sometimes these 2 guys don't honor what they say as this happened to me before). ALTHOUGH from what I read in the contract it states SOMETHING ELSE as I already said, it states, "seller (ME) further agrees to pay such commission if an agreement to purchase is agreed by the seller (me) within 90 days after expiration of the listing period, ******so long as such agreement is with anyone who was introduced to or was showed the property FROM ANY SOURCE WHATSOVER during the listing period."
From what it states directly above, it seems ANY SOURCE WHATSOEVER includes ANYONE even the seller himself which is me. Is this correct? Or is any source can only be referring to a real estate agent who who showed my cousin the home which he never did? Please someone on this forum who knows for a fact answer. I don't wish to ask a lawyer, I thought this question would be easy to answer but my agent and my broker left me in a confusing state based on what they said to me and based on what it states in the contract. Thanks!!!!!
I mean, I would hate to sell my cousin my home at a lower price on april 1 and then up pops a $22,000 commission notice demanding I pay my agent. I'm very happy to pay my agent his commission if HE sells my home during the listing period, but if he doesn't and I sell it myself on april 1 then I rather not pay commission but must of course if its stated on the contract. Is it, or is it not??
BUT YES, before I signed the contract my cousin said to me that he may want to buy my home but hes not sure and I even told my agent that. My cousin fully made up his mind after I signed the contract during listing period that he wanted to buy my home after contract expires on april 1.
I believe Bb is saying that as your cousin (i.e. family), your cousin probably knew of the house and saw it prior to the house ever being listed for sale or before engaging the REA. So, all the work of "showing" the house happened outside of the involvement of the REA.
Talk to the agent's broker, explain that a family member is buying the property, explain the timing of the "viewing," and get their opinion and take it from there.
Last edited by charlygal; 03-02-2019 at 07:14 AM..
As said above, we're not lawyers, and interpreting contracts is a legal matter... but "Any source whatsoever" could conceivably be interpreted as broadly as it's written, if a judge or jury wanted to interpret it that way.... as they might if they can be convinced that you planned and schemed to NOT sell the property during the contract, or sabotaged other sales that might have come between now and then.
You have your agent and his broker, telling you they don't intend to hold you do the contract if your relative buys after the contract. You've evidently discussed this with them already. Good. Hopefully that's in writing, even in email or text. I would be very very careful to not reject or sabotage any other legitimate offers your agent brings for the rest of this month.
As said above, we're not lawyers, and interpreting contracts is a legal matter... but "Any source whatsoever" could conceivably be interpreted as broadly as it's written, if a judge or jury wanted to interpret it that way.... as they might if they can be convinced that you planned and schemed to NOT sell the property during the contract, or sabotaged other sales that might have come between now and then.
You have your agent and his broker, telling you they don't intend to hold you do the contract if your relative buys after the contract. You've evidently discussed this with them already. Good. Hopefully that's in writing, even in email or text. I would be very very careful to not reject or sabotage any other legitimate offers your agent brings for the rest of this month.
Quote:
Originally Posted by charlygal
I believe Bo is saying that as your cousin (i.e. family), your cousin probably knew of the house and saw it prior to the house ever being listed for sale or before engaging the REA. So, all the work of "showing" the house happened outside of the involvement of the REA.
Talk to the agent's broker, explain that a family member is buying the property, explain the timing of the "viewing," and get their opinion and take it from there.
Yes my cousin saw and knew of my house way before me signing the contract with my real estate agent. I am giving my agent a chance to sell my home himself with a 2 month listing period that started Feb. 1 and will end april 1. My agent and the broker did inform me if my cousin buys my home right after my contract expires I will not have to pay them any commission, although they didn't give me that in writing.
Yes my cousin saw and knew of my house way before me signing the contract with my real estate agent. I am giving my agent a chance to sell my home himself with a 2 month listing period that started Feb. 1 and will end april 1. My agent and the broker did inform me if my cousin buys my home right after my contract expires I will not have to pay them any commission, although they didn't give me that in writing.
Well, they've already given you the best assurance you're going to get. But make sure your plans to wait out the contract (and at this point it is a premeditated, conscious plan!) don't get in the way if your agent DOES bring you an offer, because at this point, I can see you being conflicted if you get a good offer in the mean-time. Beyond that point there be dragons... and fair ones.
Last edited by Diana Holbrook; 03-02-2019 at 07:28 AM..
Reason: clarity
the issue you're running into is wanting an answer to a legal question. Only a poster who says they are a lawyer can provide you with legal advice.
As a layman, if anyone goes under contract within 90 days of April 1, you owe the commission.
Have your cousin wait until day 91 to write an offer and accept it. then you should be off the hook.
or, if your agent has only told you verbally you'd be off the hook before day 91 with your cousin, get it in writing and that includes from his broker-in-charge. Preferably, modify your contract to exclude your cousin from that provision of the contract.
Or negotiate with agent regarding his/her commission if you bring a ready able willing buyer.
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