Question Details

Tyler, Home Buyer in New York, NY

If you find a buyer before the effective date on the contract with the broker, do you still have to pay the broker commission?

Asked by Tyler, New York, NY Sat Mar 23, 2013

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Tyler,
Your contract dictates the terms of your deal. In most listing agreements there is a provision for some time after the listing agreement or buyers and sellers would wait for a listing to expire and then deal directly with each other. Your agent has put in time, effort and money to finding you a buyer. If the buyer has been found and the sale closes, you most likely owe them a commission. Read the agreement you signed.
1 vote Thank Flag Link Sat Mar 23, 2013
Those details should be spelled out in your contract.
1 vote Thank Flag Link Sat Mar 23, 2013
You signed a listing agreement with your Realtor/Broker/Brokerage, it will state the terms, unless you made a clear arrangement and written agreement with the Brokerage/Broker what happens if you find
a buyer yourself, you owe the commission... So check your contract carefully, I am sure though had you
discussed that possibility with your Realtor you would remember what the outcome was, there are even
terms that if the listing agreement with the Broker ends, that you cannot during a certain period of time
sell the home to anyone who has seen it during the listing period.

Always careful when you sign a contract any contract, in this case the listing agreement terms will
apply.

Good Luck to you

Sincerely yours,
Edith YourRealtor4Life & Chicago, North Shore & Northern Illinois Expert
Working always in the very BEST interest of her clients, Buyers, Sellers and
Investors alike....And always with a SMILE :)

Covering for @Properties Chicago & suburbs, and with her trusted Partner
Agents US & world wide properties. French, German, some Spanish &more EdithSellsHomes@atproperties.com or EdithSellsHomes@gmail.com
Check out my website at http://tinyurl.com/YourRealtor4Life
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of recommendation! Sign up to search for properties in my expanded service area.
HAVE THE MOST WONDERFUL DAY :)
0 votes Thank Flag Link Sun Mar 24, 2013
Review your contract--the effective dates for the listing (both the date it starts and ends) should be clearly spelled out in your agreement.
0 votes Thank Flag Link Sun Mar 24, 2013
well then, I think you need to ask an agent specifically in your area about this, as I have never seen a listing agreement that says "this shall be effective as of (fill in date in the future)"..............without that date being the day it is signed.

So........I can't help you with an answer.

Here, we can ,at times, sign a listing agreement - it is dated for that day, but it can say: "No showings until.................". The obligation to the Broker is still in effect immediatley after signing.

Also, similar to Mack, our MLS requires us to input any listing within 48 hrs. after signing, or we can be fined.
0 votes Thank Flag Link Sun Mar 24, 2013
Just to be clear, this is hypothetical. I'm at the beginning stages of looking into selling. I have not found a buyer. I'm not trying to cheat someone out of money for a job done.

I've just seen contracts that generally say something like "This agreement shall be effective as of (three weeks in future) and will expire (six months in future)." I'm just wondering why the first date is not the date that the contract is signed.
0 votes Thank Flag Link Sun Mar 24, 2013
"I haven't signed yet"................

well - if you haven't signed anything......there is no agreement or "effective date"



Once you sign a listing agreement - it is "in effect", and your obligation to the Broker is active (at least that's how it works next door in NJ!).....maybe I am not understanding what you mean by "effective date"
0 votes Thank Flag Link Sat Mar 23, 2013
This is tricky . . . does New York allow brokers to take a pre-dated listing?

In my market, brokers are obliged to submit our listings to the MLS within 24 hours of receipt, so . . . we essentially wouldn't have an "effective date."
0 votes Thank Flag Link Sat Mar 23, 2013
Tyler,
Discuss this with your agent. There is a very good chance that the "buyer" you found may not work out. You'll need an experienced partner on your side to sort through the process and look out for you. The commission may be reduced on this one transaction if it comes together, based on what you and your agent work out.
0 votes Thank Flag Link Sat Mar 23, 2013
I haven't signed yet, and my question is about the period of time *before* the agreement takes effect. I know they are generally effective for six months after that.
0 votes Thank Flag Link Sat Mar 23, 2013
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