Canceling a real estate contract

[jdm2008]

Originally Posted by aat2001us

I am an owner looking to lease out my house and that I entered into a listing agreement (One of group agent). I signed a contract that I will pay a month payment to them if they lease a house but I never realize that I have to pay them even when I cancel the contract. Because the agent said that I only pay them if they lease a house and I don't have to keep the contract period.

The contract says,

3. COMPENSATION:
Notice: The amount or rate of real estate commissions is not fixed by law. They are set by each Broker individually and may be negotiable between Owner and Broker (real estate commissions include all compensation and fees to Broker).
A. Owner agrees to pay to Broker as compensation for services, irrespective of agency relationship(s):
(1)
percent of the total rent for the term specified in paragraph 2 (or if a fixed term lease is executed, of the total
For fixed-term leases:
(a) Either (i) base payments due under the lease); or (ii) ; ONE MONTH PAYMENT
(b) Owner agrees to pay Broker additional compensation of , if a fixed term lease is executed and is extended or renewed. Payment is due upon such extension or renewal.
(2) For month-to-month rental: either (i) percent of ; or (ii) .
(3) The following terms apply whether the tenancy is for a fixed term or month-to-month:
(a) If during the Listing Period, or any extension Broker, cooperating broker or any other person procures a Tenant who offers to lease/rent the Premises on the above amount and terms, or on any amount and terms acceptable to Owner. (Broker is entitled to compensation whether
any tenancy resulting from such offer begins during or after the expiration of the Listing Period.)
(b) If Owner, within calendar days after the end of the Listing Period or any extension thereof, enters into a contract to transfer, lease or rent the Premises to anyone (“Prospective Transferee”) or that person’s related entity: (i) who physically entered and was shown the Premises during the Listing Period or any extension thereof by Broker or a cooperating broker; or (ii) for whom Broker or any cooperating broker submitted to Owner a signed, written offer to lease or rent the Premises. Owner, however, shall have no obligation to Broker under this sub-paragraph 3A(3)(b) unless, not later than 5 calendar days after the end of the Listing Period or any extension, Broker has given
Owner a written notice of the names of such Prospective Transferees.
(c) If, without Broker’s prior written consent, the Premises are withdrawn from lease/rental, are leased, rented, or otherwise transferred, or made unmarketable by a voluntary act of Owner during the Listing Period, or any extension.

B. If commencement of the lease or rental is prevented by a party to the transaction other than Owner, then compensation due under paragraph 3A
shall be payable only if and when Owner collects damages by suit, arbitration, settlement or otherwise, and then in an amount equal to the lesser of
one-half of the damages recovered or the above compensation, after first deducting title and escrow expenses and the expenses of collection, if any.
C. In addition, Owner agrees to pay: NONE
D. Broker may retain compensation due from any Tenant payments collected by Broker.
E. Owner agrees to pay Broker if Tenant directly or indirectly acquires, or enters into an agreement to acquire title to Premises or any part thereof,
whether by sale, exchange or otherwise, during the term or any extension of tenancy, compensation equal to
price or total consideration in said transfer, whichever is greater. Payment is due upon Tenant's direct or indirect acquisition of any legal or equitable
interest in the Premises and, if there is an escrow, shall be through escrow.
F. Broker is authorized to cooperate with and compensate other brokers in any manner acceptable to Broker.
G. Owner warrants that Owner has no obligation to pay compensation to any other broker regarding the lease or rental of Premises unless the
Premises are leased or rented to:
If Premises are leased or rented to anyone listed in 3G(1) during the time Owner is obligated to compensate another broker: (i) Broker is not
entitled to compensation under this Agreement; and (ii) Broker is not obligated to represent Owner with respect to such transaction. For fixed-term leases:
(a) Either (i)
base payments due under the lease); or (ii) ;
(b) Owner agrees to pay Broker additional compensation of ,
if a fixed term lease is executed and is extended or renewed. Payment is due upon such extension or renewal.
(2) For month-to-month rental: either (i) percent of ; or (ii) .
(3) The following terms apply whether the tenancy is for a fixed term or month-to-month:
(a) If during the Listing Period, or any extension Broker, cooperating broker or any other person procures a Tenant who offers to lease/rent the Premises on the above amount and terms, or on any amount and terms acceptable to Owner.
(b) If Owner, within 180 calendar days after the end of the Listing Period or any extension thereof, enters into a contract to transfer, lease or rent the Premises to anyone or that person’s related entity: (i) who physically entered and was shown the Premises during the Listing Period or any extension thereof by Broker or a cooperating broker; or (ii) for whom Broker or any cooperating broker submitted to Owner a signed, written offer to lease or rent the Premises. Owner, however, shall have no obligation to Broker under this sub-paragraph 3A(3)(b) unless, not later than 5 calendar days after the end of the Listing Period or any extension, Broker has given Owner a written notice of the names of such Prospective Transferees.
(c) If, without Broker’s prior written consent, the Premises are withdrawn from lease/rental, are leased, rented, or otherwise transferred, or made unmarketable by a voluntary act of Owner during the Listing Period, or any extension.

Please help me, I am so desperate!

Well the last paragraph says "made unmarketable by a voluntary act of Owner", I'm not sure what that means. But even if you can't change the price, it doesn't mention any terms. So maybe ask for very draconian terms.
I don't know I'm not a lawyer thats just my best guess.

[pumatat1]

I think the message was loud and clear and I commend you for doing it. Agents think they are God sometimes. My husband and I found a house we loved with the help of our agent. Upon the inspection, we found it had some problems. 27 year old heater acting up, roof needing replacement soon, etc. We decided against the house and our agent came over to our house and pressured me. He went to the sellers and had an hvac guy come and give estimate. Said it just needed cleaning. Had a roof estimate etc, and I know he is trying. I am an idiot because I signed the contract to buy and now am having cold feet. I just lost my mother a couple of months ago and I am an emotional wreck, and feel unstable and now I don't think I can get out of this. any help would be appreciated. Sharoneous55@yahoo.com Thanks

[2bindenver]

If you get the repairs and a warranty and you want to move why not? Have you read your contract? What does it say about default?

I am sorry for the loss of you mother, but do you really feel this is a bad deal now?

If you do you need an attorney.

[palmcoasting]

I'm so sorry for the loss of your mother. It's a very strenuous difficult time...remember you aren't alone. It was the major thought that helped me to get through.
You really should speak with an attorney if you don't want to proceed with the purchase..for any reason.