My real estate broker says he will sue me for his commission if our home doesn't sell by the end of the
listing agreement. We have had one offer that was below our listed price and the buyer first accepted our counteroffer but than changed his mind. We had made it clear to the broker from the beginning what our bottom line would be. He said we had no place to counter offer and said he will sue us since we did not sign the aggreement for sale - that we frustrated the sale of the property. My biggest concern is that he said he already reported us for collection. Can he reprt to collection with no grounds and harm my credit?
Wed Apr 2 2008, 06:24 - All locations - Home Selling - 9 answers
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BEST ANSWER
I have one word - Rubbish! None of this sounds like he has a case by real estate standards. Reporting you to a collection agency or suing for an amount yet to be determined does not make sense. Is he trying to sue to recover marketing costs? It's a very weak case at best. You mention about not asking to receive something - if you did not receive copies of anything you have signed with the listing agent, then you can void that part of the agreement. Good luck.
Sandra Bolcar RE/MAX VILLAGE SQUARE Upper Montclair, NJ 07043 973-744-7722 sandra@thecrosskeysteam.com Get a free market snapshot here: http://www.homeinsight.com/Widget/default.asp?WK7JL36V3VLE Wed Apr 2 2008, 17:10 Web Reference: http://www.homeinsight.com/Widget/default.asp?WK7JL36V3...
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Michele, I think you are on the high ground here.
I think that this Realtor's Manager or Broker might like to know some of this stuff. Again, I like the word Elvis used: BULLY! I hope you are keeping and making copies of all of this documentation that he is sending you. Emails too! Just like anything else, there is a structure for grievance. Probably like this: Talk to his manager or Broker then, if unsatisfied, talk to the governing board in your area. If what you are saying is true and can be backed up, I would not want to be your Realtor's shoes. He has left a paper trail of evidence that would be of interest to somebody up the food chain. Wed Apr 2 2008, 13:38 Web Reference: http://www.OwnGR.com
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lawyers cost money
he/she probably doesn't have enough money to sue you and he/she doesn't sound like they have a winning case then again we are only hearing your side of the story anyways good luck Wed Apr 2 2008, 13:27
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Michelle, he's a bully. He cannot force you to accept an offer below your list price. Even the contracts that allow for agencies to charge commission if you don't sell, typically only allow for that if you get a full-price, non-contingent offer. You did not receive a full-price non-contingent offer.
You may want to consult a real estate attorney. Wed Apr 2 2008, 13:11
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Thank you Keith and to all the the others how were kind enough to give me some insight. To clarify for all, it is the actual real estate broker I am dealing with. He has sent me a number of letters demanding his commission saying I violated the contract with fis agency since I did not accept the offer (which was below the list price and nothing in the contract states I have to accept it if lower). He sends me showings all the time even though he states he plans to sue me. He refuses to communicate with me by email, he said I didn't ask for it at the contract signing. I feel sure he won't release me. And he has been in business for a long time. My home still seems appropriately priced as compared to others in the area. I know its a tough market and respect a realtors desire to sell quickly but I do not want to go below a certain price and I even went as far as asking him if he felt comfortable with that (and of course at the time he said yes). People are telling me reporting to the commission will not do much, just maybe anger him enough to really file the suit and cause me attorney fees. I could never have imagined going through this.
Wed Apr 2 2008, 13:02
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Michelle
I am amazed at your post. There are a couple of problems I see (potentially, but probably). 1. Your state has laws that govern real estate agents, probably under the Dept. Of Real Estate. Google it find out. I would file a complaint with that department, document your complaint with times, dates, and witnesses. 2. If your agent is a Realtor, then they are in violation of the Realtor Code of Ethics. To report an ethics violation, please go to web and look up the Association of Realtors for your area. They have a process for handling ethics violations and based on your post you should look into it. 3. Your goal is to get your home sold. Aside from the problems with your agent, the truth is that a properly priced home will sell for the closest price to asking price during the first 30 days on the market. So getting what you feel is a low offer, if this is the ONLY offer you have received, is probably close to market value. When the listing expires and you are interviewing new agents, you now know the price for which your home will NOT sell. So does the entire world. So you might need to re-examine your motives for selling and your expected net. When you re-list no one is going to expect the property to be re-listed at the same price. Probably a five% (at least) price reduction. Sorry to hear of your situation. BTW, I agree with both previous posts. Wed Apr 2 2008, 09:19
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Realtors can't answer legal questions but we can suggest you check with your contract to see how disputes are to be handled. If it's not by arbitration, as it is here in Oregon I would suggest you check to see how your contract says disputes are to be settled and go that route. Then find out who his principal broker is and report it and get all your correspondence with every party in writing (email is good-to keep track of everything). Then every detail will be looked at and a determination made. At face value this is unethical and the agent is shooting himself in the foot. (head maybe!)
Wed Apr 2 2008, 09:14 Web Reference: http://www.junelizotte.com
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Michele,
In my area, the listing agreement says that you would owe the agent the commission if you received a full price offer with no contingencies and still refused to sell. While this is obviously a benefit to the agent, it also helps to prevent discrimination towards potential purchasers. That being said, only the most foolish and short sighted agent would ever pursue a commission based on what you are saying. An agent who gets a reputation for this type of behavior won't be in business long. Most listing agreements also say that you can fire your agent at any time with written notification to the broker. I would fire this agent immediately. Good Luck. Wed Apr 2 2008, 07:56 Web Reference: http://www.kennyeverson.com/
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FIRST ANSWER
Read your listing agreement, and if you're unsure after reading your listing agreement, contact the managing broker at your agency's office. Everything is going to depend on what your contract states.
1) No, I doubt that he can report to a collection agency when the amount is not yet due 2) No, I doubt that he can hold you obligated to accept an offer that was below the amount you're willing to accept. 3) No, I doubt that he can place THAT for collection even after the due date these strong-arm tactics are unacceptable, and grounds for dismissal (or replacement, if you'd rather have the agency give you a new agent) in my opinion. Wed Apr 2 2008, 06:32
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