Home Selling in Warren>Question Details

Lucky, Home Seller in Warren, TX

Signed contract to sell house and property for six months. What does this protection peroid mean 180 after the six months are up . please answer.

Asked by Lucky, Warren, TX Tue Sep 15, 2009

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Thank you Rock - I am flattered by your kind words!
I am always happy to help, or at the very least, share my 2 cents!
Debbie
1 vote Thank Flag Link Wed Sep 16, 2009
Hi Rock
Let me just say that there may always be exceptions to anything I am saying, and I am speaking from my experience and point of view (nice disclaimer, eh??)

In regard to your first question.....to the best of my knowledge, once a home is relisted even if it is a flat fee agency - it is simply relisted, and anyone who buys it does so through the new listing "source" or arrangement, full service or not.

Basically, the listing agent has an agreement to try to sell a property within a certain time period. If that doesn't happen, the listing expires, and the seller lists elsewhere, now it's the "elsewhere's" opportunity to get it sold. First agency is out of luck. Now, there may be an exception under certain circumstances where a particular buyer is listed as an exclusion to the listing, but in my opinion , that is a very, very rare occurance. I can not recall a situation where it happened.

Now, If there is a buyer who is close to making an offer and the listing is due to expire any day, the seller can always extend the listing even just for a few days or weeks in order to give this particular buyer a chance to ge tehe offer in under the original lisitng agency. I have had that happen.
Once it expires, and is relsited.... th original listing agency is out of luck, unless there are extenuating circumstances (in my opinion).

Now, to your second question. If the 1st agency allows a seller to withdraw the listing...in order to list elsewhere ( there would have to be serious issues to allow that), then there might be a situation where exclusions to the listing exist - at least, as you said, until the listing wold have normally expired.

Remember, a seller can withdraw their listing anytime id they choose dto do so.....but they cannot list with another company until the listing would have expired. They would need an "unconditioal" release in order to list elsewhere immediately..

I had this exact situation occur. I showed a home that had been on the marker 5 months. Out of the blue, I got a call the next day from the seller - she went on and on about how unhappy she was with the listing agentcy and agent. She said she loved the way I showed her home, and wanted to me to list it. I spoke to my manager, and told the woman she had to go back to her agent, and see if she could work things out with her. I then got a call from the listing agent - they had decided not to hold the woman "hostage" till the end of the listing period (1 more month)...they said they'd give her an unconditional release, so that she could list with me.....but..............if a buyer came along during this last monthof the listing period (any buyer, new or already in the picture), then I'd have to pay them a 25% referral fee. I was ok with that, as was my broker..so that is what occurred. This was an unusual situation, with a creative outcome. The seller was satisfied ...and happy...the agents cooperated to make it happen.
By the way...the house never sold, as the seller eventually took it off the market all together, and decided to stay there. Such is life!

So....in regard to a seller, as you referenced it, "pulling out" before the listing expires, there might be strings attached in order to allow the total, or unconditional, withdrawl - that would be up to the original listing company and the issues surrounding the reasons for the withdrawl.

Whew..hope I answered and didn't further complicate the subject at hand!

Have a great day!
Debbie
1 vote Thank Flag Link Wed Sep 16, 2009
Bruce, I don't know how it is in Texas, but here no one would ever take a new listing, and allow buyers to be excluded just because they saw the house while it was listed with another company!!!! That's absurd. Once a home is relisted, the protection period no longer applies. It only applies to buyers who try to buy the home when the listing expires, if it isn't relisted. This is to avoid having the seller try to work a deal directly with a buyer to save the commmission, and exclude the agents (once thelisting expires).

I listed a house that had been on the market with another company.........I got a nice reduction when I listed it ...and it sold to someone who had made an offer, but didn't get it while it was listed with the 1st agent. I felt bad, but thats how it goes. The reduction I got is what generated the new offer. Things like this happen.

Lucky...the 180 days means you can't sell the home to anyone who saw it during the listing period. In my area, we are supposed to notify the listing agent by certified mail (maybe email works these days) and give specific names of buyers who saw the home, and might be interested.
Lucky, this clause prevents you, as the seller, from selling directly to those buyers.
1 vote Thank Flag Link Wed Sep 16, 2009
Rock
I had a situation similar to what you mentioned. I rented a townhome, and the lease gave the agents a 90 day protection period if the tenants bought the property after the lease expired. This is a common addition to a lease.
The tenants told me they were staying on after the lease expired, on a month to month basis. OK - fine.

Well, I found out they bought it......and closed on the 91st day after the expiration of the lease. Nice, huh?

Were we still entiltled to a commission? Yes.............they negotiated and were in contract during the protection period, even though they closed 1 day later. Obviously there was colllusion and an attempt to avoid paying the commission. To further complicate things, the landlord had moved out of state, and the tenant wouldn't give me his new address.

Did my company go after the seller for the commission? No.....the legal fees would have been more than the commission, so they let it go. With the landlord out of state, it just wasn't worth the fight.

Oh, and did I fail to mention the tenants were firends of mine?? "Were" is the operative word!
1 vote Thank Flag Link Tue Sep 15, 2009
It means that if the agent has a buyer that hasn't closed on the property by the time the Listing Agreement is up, they are still able to obtain their commission up to 180 days past the expiration date of the Listing Agreement.
1 vote Thank Flag Link Tue Sep 15, 2009
Lucky - just to clarify - Lynn's response left off one very important part......the protection period only applies if the home is not relisted............and in many cases, any buyer's agent who showed the home, might have to register that buyer's name via certified mail. That may vary from area to area.

Once the home is relisted, minus any contingencies to the contrary, there is no protection for any agent who showed the home.
0 votes Thank Flag Link Fri Sep 18, 2009
Protection Period simple any buyer via buyers agent who seen property while listing with former realtor would earn commission.

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0 votes Thank Flag Link Fri Sep 18, 2009
In California, this so-called protection period gives the listing broker the right to the fee agreed upon for any buyer, exchangor or lessee who has been registered with the seller in writing by the end of the listing period or within 3 days thereafter. Generally speaking, the right is cancelled if the seller lists with another broker after the expiration of the listing agreement. This clause protects the broker from the unscrupulous seller who makes a deal with a buyer to come back after the listing expires to avoid paying the fee to the broker who actually earned it by listing the property and applying diligent efforts to sell.
0 votes Thank Flag Link Wed Sep 16, 2009
Debbie,

Again thanks so much for clearing this all up for me. Your time is greatly appreciated, and opinion very much respected by me. And as you are well aware of you not only cleared up a lot of areas related to Lucky's question for him and me, but no telling how many others out there. Trulia should thank their lucky stars for your contributions.
0 votes Thank Flag Link Wed Sep 16, 2009
Debbie,

Thanks so much for clearing that up for me, and I'm sure Lucky appreciates it too. And I follow you completely on your other comment regarding Bruce's answer in that the protection period is void when a listing period expires, and the seller re-lists with another brokerage. What if after the end of a listing period, a seller signs with a flat-fee company, and is listed FSBO through them. Is the same courtesy extended should a buyer who previously viewed the property while it was listed full service then buy? Or does this only work if both brokerages are full service?

Another interesting situation would be if the seller would pull out unilaterally before expiration, and then sign with another listing agent. I guess if that would happen, and a buyer who had seen the property while listed with the first agent ended up buying while listed with the second agent before the actual end of the first listing period, then possibly two commissions might be owed. Would that be right?

Lucky,
I'm sorry about the thread hijack (not really :) ), but we both could be learning something here, and it is related to your question.
0 votes Thank Flag Link Wed Sep 16, 2009
It also means you would want to exclude any buyer introduced to the property during the initial listing period, but wants to buy during the 180 days after from any new listing agreement if you change brokerages.
0 votes Thank Flag Link Tue Sep 15, 2009
Bruce Lynn, Real Estate Pro in Coppell, TX
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Obviously, this is not a good time to be asking. It basically means that should any buyer who found your house through the efforts of the agent during the listing period actually buy your house during the protection period, you would owe the originally agreed upon commission to the agent. During the protection period there might be a little gray area as to actually procured the buyer if the agent hasn't any record or proof of the buyer during the listing period. Also, I've never really been clear if that meant the actual closing date or not. In other words, if you and Joe Blow come to an agreement and the contract is signed during the protection period, but the closing takes place after the expiration of the protection period, is the agent still owed? Sorry didn't mean to repeat J Lo, but she beat me, and I didn't feel like editing. However could someone clarify my little scenario for both Lucky and me?
0 votes Thank Flag Link Tue Sep 15, 2009
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