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Last week I signed an Exclusive Agreement to Sell my multi-tenant residential investment rental property. I am now seriously having second thoughts about selling. I want to explore the possibility of keeping it and hiring a management company to manage the building.
I signed the agreement a week ago and the broker has already taken photos. He will begin marketing some time this week.
What can I do?
Usually there is a clause that would give you insight on a scenario like this one. What does the contract state?
Why not call the broker and tell him this? He might be cool about it but you might be require to pay him a commission for all the work he has put into selling the property. The contract will have the info you need. read it!
There should be a clause in your contract regarding termination. If not you should confirm that the agreement just requires you to only to consider any sales brought to you by the agent.
But first of all call the broker and tell him you've decided not to sell after all and to not commence any marketing.
With Exclusive agreement, in general, you have to pay the commission to the broker if you decided to back out of the agreement. I hope there is a clause somewhere on the contract that you sign allow you to rescind your contract without too much of a penalty.
Is this a listing agreement with a broker to sell the property? If the answer is yes, the agreement means that if you sell the property within the listing period, you have to pay the commission, even if the broker didn't find the buyer.
However it does not require you to actually sell the property. If you want to keep it, you can, and you shouldn't owe the broker anything.
You can always UP the asking price by a few million.
But DO tell the agent, by text, e-mail AND by letter that you no longer wish to sell the house before he spends any money.
What does your cancellation clause say?
Last edited by Kefir King; 01-22-2018 at 04:52 AM..
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