Home Selling in Madison>Question Details

Matt Vanden…, Home Owner in 53703

Hello, The realtor gave my parents a list of people who toured the house upon her contract expiration. Can they contact these people and sell?

Asked by Matt Vanden Avond, 53703 Mon Feb 18, 2013

She did not give any explanation or opinion on any of them. Can they contact any of these people and sell to them without paying a commission? She did not explain any of this upon the expiration of her contract.

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9
Ben Anton’s answer
If your parents were to re-list with another broker, they would provide those names to the new agent as exclusions from the new contract (Buyers that would earn the previous agent a commission, not the new one.) Without a new agent, the question is as much an ethical one as a legal one. Just as if a party wrote an offer during the listing that was not accepted, these potential buyers were the fruit of the agent's work or marketing. For that reason, the contracts often make arrangements for this situation. In short, if they bought, your parents could be obligated to pay a commission. If you can't find the logic in the contract, an attorney could show you through the legalese.
1 vote Thank Flag Link Mon Feb 18, 2013
sounds like it's a list of protected buyers. if so, then basically the listing contract is extended one year for all of the names on the list.
1 vote Thank Flag Link Mon Feb 18, 2013
buckle up....here come the explanations.

Read the Listing Contract. Focus on the part about "Extension of Listing"
1 vote Thank Flag Link Mon Feb 18, 2013
You will need to review the listing contract you signed as most contain a clause that prevent this from happening.
0 votes Thank Flag Link Mon Dec 22, 2014
Matt,
In the listing agreement with the previous Realtor, there is a section explaining the 1 year protection for clients that have previously viewed and/or negotiated on your home. The previous agent will get the commission if any of these protected buyers purchase your home. This is common practice for the realtor to send you a list of protected buyers. Refer to lines 34 - 38 and lines 61 - 65 of your listing agreement. When listing the home with a new Realtor, this list must be passed on to the new Realtor, so that they are aware of the protected buyers and make a reference to it in the new listing agreement.
Feel free to call or email if you would like to discuss this further, or are looking for an agent to relist the property.

I wish you good luck in getting the home marketed and sold.
Judy Braund, Keller Williams Crossroads, 608-235-0431, judybraund@kw.com
0 votes Thank Flag Link Mon Feb 18, 2013
Hello Matt,

Yes, Per the listing contract that your parents signed, the agent procured these buyers so she should be paid if any of them decide to purchase the home. Your parents will also want to be sure to disclose these buyers to a new agent if they decide to re-list their home.

If you have any other questions, fell free to email ,donnaherms@gmail.com or call 608-770-1140.

Donna & Dan
0 votes Thank Flag Link Mon Feb 18, 2013
This list of people who viewed the home while she had it listed is called Protected Buyer as outlined in WB-1 Residential Listing Contract under EXCLUSIONS line 34. Essentially, if your parents choose to list with another agent, they will be asked if there are any protected buyers. Your parents would be obligated to provide that list to the new listing agent so they can be track this. If any of these people end up buying the home--either directly through your parents or through another agent--she would be entitled to be paid commission by your parents. Agents do check after a property sells without them to see if it is someone on their protected list bought it and do pursue it, since they were the reason the home eventually sold.

If you have further questions, just give a call.

Susan Oshman, Broker Associate
Madison's Alternative, REALTORS LLC
Keller Williams Realty
1 N Pinckney Street Suite 200
Madison WI 53703
608.206.1440
http://www.MadisonsAlternativeRealtors.com
0 votes Thank Flag Link Mon Feb 18, 2013
Yes, Matt if your parents used the Wisconsin (WB-1 Residential Listing Contract-Exclusive Right To Sell). Tell them to read the contract, lines 34-39. A further explanation is that the previous agent is to provide that list to your parents within three days of cancellation or expiration of his/her contract. These buyers are referred to as protected buyers because they chances are and it could be assumed that the reason they came in the first place is due to the prior agent's efforts and costs such as ads, flyers, signage and probably most importantly the ad in MLS.

These buyers are protected for up to one year after the original contract ends. If you don't understand the language, you should do as others here have suggested and contact and attorney, but it is spelled out pretty clear in the listing contract.

This law was put into place for just this purpose. Years ago some sellers would list their home with an agent and take advantage of all they had to offer in terms of bringing a buyer to the table. Then the buyer and sometimes the seller would contact each other and make a "back room deal" to wait until the listing expired. That way buyer would pay less and seller would get more.

It is unfortunate that because of the actions of a few, we are forever having to institute new policies and procedures. It makes our job more and more difficult. A closing file used to contain maybe 12-15 pages total and now they are frequently 3-4 inches thick because of it.

I hope this helps explain what might sound unreasonable to the average person, but nevertheless is true.
0 votes Thank Flag Link Mon Feb 18, 2013
Normally there is clause on the contract when going past the cancellation date (for a specific amount of days) that states if there are any buyers who viewed the home while listed the broker would be entitiled to their commission. Read the contract carefully to determine if you would owe the realtor a commission.
0 votes Thank Flag Link Mon Feb 18, 2013
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