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  1. #1

    Default Firing Realtor While Under Contract

    My question involves real estate located in the State of: TX

    We are under contract to purchase a home. Not happy with our realtor.
    We signed a buyers representation agreement that expired Aug 2 with a 120 day protection period that is nullified if I switch to a different broker (as opposed to representing myself in a transaction).

    I can save tens of thousands of dollars if I switch to one of these ďbare bonesĒ brokerage firms that will give me 2% back of the buyers commission.

    So, assuming I can get the sellers to agree to void the contract AND accept a new contract with the same terms with the ďbare bonesĒ brokerage group, could my realtor have a valid claim against me should he choose to sue?

    The way I understand it, our buyers agreement with him expired and he is not entitled to receive the commission if I purchase a home after the expiration date if I use a different brokerage company.

    I know itís a mean thing to do but realtors are leaches and most arenít worth the crazy commissions especially on expensive homes.

  2. #2
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    Default Re: Firing Realtor While Under Contract

    I'm not getting the time line here.

    You're in escrow to purchase a property. You and the seller have a signed purchase contract. The name of your buyer agent appears in that contract as recipient of the commission.

    If those three sentences are correct then, no, you don't get to dump your buyer agent and screw him out of the commission.

    If something else is happening, please explain more carefully and use dates where appropriate.

  3. #3

    Default Re: Firing Realtor While Under Contract

    Thanks for the reply.

    Those statements are all correct.

    What if I could get the seller to void the contingent contract (we mutually agree to void the first contract) and enter into a NEW contract with the "bare bones" broker to save $$$$ ?

    As I mentioned earlier, (if I understand my buyers representation agreement) I am no longer bound to my original realtor through my buyer's representation agreement.

  4. #4
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    Default Re: Firing Realtor While Under Contract

    Quote Quoting BMUJS
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    Thanks for the reply.

    Those statements are all correct.

    What if I could get the seller to void the contingent contract (we mutually agree to void the first contract) and enter into a NEW contract with the "bare bones" broker to save $$$$ ?
    Wouldn't work. That would be breach of contract with the buyer agent. The lawsuit would be filed against you and the seller and the buyer agent would be awarded the commission.

    Quote Quoting BMUJS
    View Post

    As I mentioned earlier, (if I understand my buyers representation agreement) I am no longer bound to my original realtor through my buyer's representation agreement.
    I think you are not understanding your buyer's representation agreement. I'll give you an example based on your expiration date of August 2.

    Let's say your contract with the buyer agent runs from June 2 to August 2. The agent finds you a house and you go into contract on July 15. July 15 was when the buyer agent's contractual duties were performed. That's why the buyer agent is entitled to the commission no matter what you try to do after August 2.

    I'll give you another example. You have a homeowners policy that runs from August 2 2019 to August 2 2020. A fire destroys your house on August 1 (Saturday). It's in all the papers. The date is well documented. On August 2 (Sunday) you decide not to renew your policy. Stands to reason, no more house to insure. On August 3 (Monday) the claim rep opens the file, calls you up and says "We're not going to pay you for your house because you no longer have a policy with us."

    Need I go on?

  5. #5

    Default Re: Firing Realtor While Under Contract

    Thanks again for the reply. Very interesting and your right, I didn’t understand that the buyers agent duties were fulfilled when a buyer entered into a contract, as opposed to the house selling. So to throw a few more complications in the mix:

    In the buyers representation agreement, it says that the commission is to be paid by the seller (not me). The contract for the purchase of the home is contingent on me selling my home first. If we can’t sell my home and the contract falls apart, does the seller (not me) still owe the commission?

    Also, the buyers representation agreement the expired August 2nd. We entered into contract on August 8. According to the representation agreement, the realtor still earns a commission if “buyer enters into a contract within 120 days after the expiration date provided that 1- the Broker within 15 days provides buyer a list of all properties shown to buyer during the term and 2- the buyer hasn’t entered into another agreement with a different broker.
    The broker/realtor didn’t provide me with any list of properties.

  6. #6
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    Default Re: Firing Realtor While Under Contract

    In the buyers representation agreement, it says that the commission is to be paid by the seller (not me). The contract for the purchase of the home is contingent on me selling my home first. If we can’t sell my home and the contract falls apart, does the seller (not me) still owe the commission?
    No.

    The obligation to pay the commission arises when escrow is opened subject to actually completing the sale.

    The commission is not payable if the sale is not completed because one or more of the contractual contingencies were not met (for example: sale of your home, financing, inspection, appraisal, etc) through no fault of your own.

    Also, the buyers representation agreement the expired August 2nd. We entered into contract on August 8. According to the representation agreement, the realtor still earns a commission if “buyer enters into a contract within 120 days after the expiration date provided that 1- the Broker within 15 days provides buyer a list of all properties shown to buyer during the term and 2- the buyer hasn’t entered into another agreement with a different broker.
    The broker/realtor didn’t provide me with any list of properties.
    That provision is not relevant because the buyer agent's name is already on the purchase contract as recipient of the commission.

    You can't unring that bell.

    By the way, your idea:

    assuming I can get the sellers to agree to void the contract AND accept a new contract with the same terms with the “bare bones” brokerage group,
    Is fraud. A judge would not afford you the protection of that 15 day list limitation.

  7. #7

    Default Re: Firing Realtor While Under Contract

    Again, thanks for the response.
    What I donít understand is that you said (and what my contract states) is that the buyers agent fulfills their contractual obligation and earns the commission when I ENTER into a contract. That contradicts what youíre saying now that they donít get a commission unless the sale is completed. They get PAID when escrow closes, they EARN the commission upon the buyers entering the contract. I think youíre wrong on that point.

    Secondly, letís say the contingent contract falls through, we canít sell our house and buy the new one. What would be keeping me from finding a new broker and trying again on the same transaction? The buying and selling agreement states that , at the end of the term of the agreement, the commission is due to the realtor if I try to complete the transaction on my own without the help of another broker for 120 days, but if I get a new broker then that protection period does not apply.

    Adjusterjack, you have commented on previous issues of mine in the forum and your advice has not been accurate in the past. Not sure you know what youíre talking about here

  8. #8
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    Default Re: Firing Realtor While Under Contract

    Quote Quoting BMUJS
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    could my realtor have a valid claim against me should he choose to sue?
    Are you supposing folks here have read your contract?

    Without reading your contract, no one can possibly know the answer to this.


    Quote Quoting BMUJS
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    I know it’s a mean thing to do but realtors are leaches and most aren’t worth the crazy commissions especially on expensive homes.
    So...generalizing and name-calling are your justifications for screwing someone out of thousands of dollars despite that person having done whatever quantum of work he/she did? Is your realtor a "leach"? Why did you sign a contract with him/her if "realtors are leaches"?

    By the way, your proposed scheme to screw over this person could potentially get you sued for fraud and your seller should in no way go along with it.

  9. #9

    Default Re: Firing Realtor While Under Contract

    Thanks guys, I understand I can’t back out of the contract that way.

    By the way, if you all are attorneys who invested years and money in graduate school, doesn’t it bother you that someone with no particularly unique skill set makes 30-60k for pushing papers?

    My play at this point is fingers crossed they get a great offer on my house. If we don’t and the clock runs out on our representation agreement with our realtor, I can start fresh with a new broker.

  10. #10
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    Default Re: Firing Realtor While Under Contract

    Quote Quoting BMUJS
    View Post
    By the way, if you all are attorneys who invested years and money in graduate school, doesn’t it bother you that someone with no particularly unique skill set makes 30-60k for pushing papers?
    Not at all. Realtors being paid whatever they're paid has zero impact on my life, so it would be silly for it to bother me.

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