Read your contract carefully (your listing contract) if you are using a Brokerage (Realtor). Some are worded that you would owe a commission but they also have a few exceptions such as death of a buying/selling party or such. The other problem you need to consider is whether your act could be perceived as discriminatory. If a protected class of individual made an offer and all of a sudden you decide not to sell it could be viewed as discriminatory. There are many protected classes (race, creed, national origin, to name just a few). So If I was a protected class and you decided not to sell to me and then turned around and sold it to someone else, guess what? You could be sued by that person as well AND their Realtor might pursue commission too. Moral of the story? Contact a real estate lawyer for your protection in this case. It would be worth the $$ to stay legal and avoid paying commission or a judgement against you. Best wishes! Cher

Carole.......... Hi

If someone made you an offer (verbal) , and for whatever reason, you decided not to sell before entering into any kind of contract, you can not be forced to sell, and I can't believe that any broker would hold you liable to pay a commission. Plus, there are other terms to the contract than just the price. As a matter of good will, it would be foolhardy to put you in a position of owing a comission. I doubt you'd be recommending that agency to anyone in the future. Still, you need to check with an attorney.

In NJ we have a 3 day "attorney review period" after contracts are signed - during that time, either party can get out of the contract with no reason given, and no one would be able to claim a commission whether it was the buyer or seller who changed their minds. In fact, one of the first things the attorneys do, is change any wording in the contract to reflect that commissions are only earned and payable at the closing. Maybe you should consider moving to NJ !! We seem to let the buyer or the seller off the hook if they change their minds, even after signing and fully executing a contract!

Obviously, I don't live in VA, so I suggest you verify any advice given here by anyone.

Good luck to you...
Debbie

Hello Carole and thanks for your question.

In these difficult economic times, you are not alone in your trepidation over whether to sell or not even when a qualified buyer approaches you to purchase your home. Unfortunately, however, the question you ask is a legal one, and all of us here (who are Realtors) are cautioned against ever providing legal advice when we are ill-qualifed to do so. The best and most reliable answers will come from a qualified real estate or contract attorney in your state.

However, if you choose not to immediately talk with an attorney, Keith suggestion below to read the contract, is a very quick way to review your options. There are two answers you need to find in your research: 1) What might I owe to the listing agent and his/her broker if you choose not to sell and 2) What might I owe the buyer, if I have already agreed and executed the sales contract. Both the sales contract and your listing agreement will address these problems, as they are quite common in the industry.

Here in California, for example, the listing agreement does provide the Realtor with some compensation if the seller backs out of the sale. How much, of course, depends on where in the 'transaction timeline" both parties are located. If you have not yet formed a sales contract with the buyer, then the buyer is not harmed if you decide not to make the contract. As my broker always admonishes me, "you can't force a buyer to buy or a seller to sell--but you can make him PAY for damages."

So, take a few minutes to talk with your Realtor about your feelings about selling and your change of heart in this transaction; and talk with a qualified attorney for any legal advice in this matter.

Good luck!!

Sincerely,
Grace Morioka, SRES, e-Pro
Area Pro Realty

Carole
Read your contract.

One issue that would require an answer is IF your Realtor procures a buyer, and you agree to a price, and then change your mind:
Did the Realtor fulfill their contract?
On what grounds would you refuse? Equal Housing issues might play a part here.

Keith

Any offer includes several parts not just price. If you have decided not to sell because of personal reasons and you are under contract with the buyer you may be in default, it all depends on what your contract says. If however you have a listing contract with a broker they may insist on payment for finding you a ready willing and able buyer, but if you could not agree on all terms, for example settlement date, or other contingincies you may have a case for being able to walk away. It really all depends on your contracts, listing and sales agreement.

However, an understanding broker should think twice about pressing for payment if they want the listing when you are ready to sell.

Why would you say something like that, Michael? That is non-sensical.

Unless you are assuming the seller is already under contract, that is. You should be more careful.

You also could get sued by the Buyer if the buyer offers you a full price with no contingencies and you say no.

I don't know what the technical answer is but the moral one is YES. Why would you waste this person's time if you don't intend to sell even at your asking price? I assume you are talking about your listing agent and not a buyer's agent.