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We hired a real estate company in April. The house was put under contract at the end of July. The contract expired and the house is to be closed on this week. Are we still obligated to pay the realtors their fee due to the contract with them having been expired?????
It depends on how the listing agreement (which is a legally binding contract) reads, but if they did all the work of getting the house marketed, got a contract, and shepherded it to within a week of closing, why on earth wouldn't you pay for the work you hired them to do and they did?
Well I guess because the house was supposed to have closed in 60 days and now it has been almost a month past when it was to be closed. It has held us up buying the home we want. We had to pay more taxes on the home, had to still heat it, and had to extend our home insurance.. I just feel we have been the ones put out. Plus when we questioned the agents about why it was taking forever they kept making up different reasons every other day...
yes, everyone should read their contract carefully.
A realtor in central Minnesota had the words--" offered to a buyer"--as a stipulation as to who was on the list that he could still get commission months after expiration.
Turns out he did little work trying to sell the house except call everyone in that small town to ask if they were interested.
Many said--"no"-- and hung up, yet their names appeared on that list.
What were the reasons given for the extension of the closing date? Not that that has anything to do with whether the agent should be paid for the work they did, of course - that's dictated by the contract you signed and your conscience.
Also, you say you asked the "agents" - are you saying you talked to both your agent and the buyer's agent?
I'd be stunned if they didn't have a hold over clause in their listing agreement in which case you will be responsible for paying them commission.
The house closing on time has nothing to do with the marketing piece and finding a buyer. We are normally a 30 day close escrow state. 45-60 days is the norm now. Lending/underwriting is very difficult and they make most people's lives more difficult, buyers, sellers, and agents alike. I have no idea if the delays are agent related or not, but I would guess 90% of the time, closings are delayed due to underwriter requirements. That is not something real estate agents control.
What were the reasons given for the extension of the closing date? ...
I'm curious too. Any extension would have to be approved by you. You should have been told why the extension was necessary. What does your title company or attorney (depending on state) say about the closing status?
I'm wondering if this is a short sale, and are you waiting on your lender's approval? If so, that should have been explained to you. Edit: probably not if you are buying a home after this closes.
First it was something about the deed, then it was they were just waiting for a closing date, then it was the state government, then it went back to the deed, then it was the bank didn't have a closing date... It was one reason one day and another the next.. We just feel we were given a bunch of lies. The buyers used our agent....It just seemed like they could care less that we were being inconvenienced. We are going to pay them, but they didn't live up to their bargain..We were supposed to close on our new home on the 30th.. Now we have to wait another 2 weeks to close on the home we want...We really hope we don't end up with a big snow storm on the way up...plus we wanted the yard fenced for our dogs.. looks like that will have to wait til spring! All because this sale was not done in a timely manner....
Forgot to mention, they want me to sign the extension papers and fax them back to them asap.....
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