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I found a house online and made an offer through the seller's agent, the seller never responded and the offer expired. Within days the seller's contract with the selling agent expired and the house went off of the market. The seller's agent could not give me any information on why the seller did not respond to the offer and took the house off of the market, so I contacted the seller myself. She explained that she was very unhappy with the agent and was going to find a new agent. After talking to her she agreed to sell without an agent but thinks that her contract with the previous agent prevents her from selling to me within 120 days. Is this a common stipulation in a selling agent's contract? Is there any reason I can't rent from her and then purchase the house at the end of the 120 days? Thanks!
Basically it prevents the Seller from selling the house after "x" number of days specified in the Listing Agreement to someone that was shown the house during the listing period without the Seller owing a selling commission.
I found a house online and made an offer through the seller's agent, the seller never responded and the offer expired. Within days the seller's contract with the selling agent expired and the house went off of the market. The seller's agent could not give me any information on why the seller did not respond to the offer and took the house off of the market, so I contacted the seller myself. She explained that she was very unhappy with the agent and was going to find a new agent. After talking to her she agreed to sell without an agent but thinks that her contract with the previous agent prevents her from selling to me within 120 days. Is this a common stipulation in a selling agent's contract? Is there any reason I can't rent from her and then purchase the house at the end of the 120 days? Thanks!
The 120 day stipulation is called "The Gotcha Clause". Translated it means I gotcha seller and I'm going to get money one way or the other from you. It is unfortunate that it is allowed to be legal but most things are not illegal if two parties agree to it.
From your standpoint it is a simple solution. If you really want the house then speak with a lawyer who specializes in real estate. Make sure your state laws do not allow the used home salesperson to come back on you if the home closes and you take possession. Then use the same lawyer to draft your purchase contract and make sure it has specific performance clauses where you can recoup from the seller any money you spend to buy the house in the event the owner backs out at any time for any reason. Then make an offer and let the owner worry about dealing with the used home salesperson and "The Gotcha Claus".
If the used home salesperson wants any money they can make a claim at closing and the owner can pay them then. If they don't do it then, and the state laws don't allow them to touch you, then let the used home salesperson chase after the seller.
The 120 day stipulation is called "The Gotcha Clause". Translated it means I gotcha seller and I'm going to get money one way or the other from you. It is unfortunate that it is allowed to be legal but most things are not illegal if two parties agree to it.
From your standpoint it is a simple solution. If you really want the house then speak with a lawyer who specializes in real estate. Make sure your state laws do not allow the used home salesperson to come back on you if the home closes and you take possession. Then use the same lawyer to draft your purchase contract and make sure it has specific performance clauses where you can recoup from the seller any money you spend to buy the house in the event the owner backs out at any time for any reason. Then make an offer and let the owner worry about dealing with the used home salesperson and "The Gotcha Claus".
If the used home salesperson wants any money they can make a claim at closing and the owner can pay them then. If they don't do it then, and the state laws don't allow them to touch you, then let the used home salesperson chase after the seller.
Seems a bit unfair to the seller to call his home a "used home". I prefer the term "resale" or "existing home"!!!
Or JBiggs, it protects agents from unethical buyers/sellers who agree to a deal on the side to try to cut the agent out. Where do you come up with this junk?
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