They allowed you to remove it from the market for the remodeling and then were glad to re-list you upon your return, but not write up a new listing agreement. The listing expires and they want money, no way should you give in to this extortion. Tell them you will lodge a complaint with their Board of Realtors, you must be prepared to follow through on the threat if they do not heed your warning.
I would suggest that you refuse and if the realtor persists, tell him or her that you will present a complaint to the local board of realtors if they persist. That will usually stop anyone who does not have a good case. Realtors hate to be taken to their board.
Another option, which would take more of your time, would be to request a meeting with the realtor and the broker who is in charge of the office. That is a little less powerful, but has the advantage of perhaps getting the realtor's leadership on your side.
Rocky Top Realty
A cancellation of listing was not signed nor presented however the agent prepared a amendment to extend the listing by the time the home was off the market and was notified that amendment would not be signed. The agent proceeded to relist the home after the remodel at the new price (higher) and when the listing was up, presented another ammendment to extend the contract time, which was also not signed. When asked to remove his sign, etc. a demand for the full commission was made.
In Tennessee the following is in the contract:
Compensation to Agent
I hereby agree to compensate Agent, if during the term hereof or any extension thereof, the property is sold by Agent or any other person, or if a sales agreement is obtained for the property by Agent or any other person with a buyer who is willing and able to purchase the property upon the price and terms herein set forth or any other price and terms I may accept, or if the property is withdrawn from sale, transferred, conveyed, leased without the consent of Agent or made unmarketable by my voluntary act. If suit is brought to collect compensation or if Agent successfully defends any action bought against Agent by me relating to this authorization or under any sales agreement relating to the property, I agree to pay all costs incurred by Agent in connection with such action including a reasonable attorneyâ€™s fee. The term â€œsaleâ€ shall be deemed to include any exchange or trade to which I consent and, in such event, Agent is permitted to represent and receive compensation from both parties with full disclosure.
Is the agent asking for costs of marketing and other costs for early cancellation as per the contract?
Read your contract. Try to come to an agreement with the agent and if you can't do it then talk to an attorney.
You say you pulled the house off the market to do extensive remodeling. Did you 'officially' pull it off the market by doing a Cancellation Of Listing Agreement? If you did that, it would have had to have been signed by your Realtor/Broker and you would not be in breach of contract because you both signed cancelling the contract. If you didn't cancel the listing (in writing), you need to read your Listing Agreement to see what it states on paying commission. In CA, the only way we get paid commission is if the house actually closes escrow and Title transfers. Now, you state the agent relisted the property after the remodeling. Is that listing still Active?