Home Selling in Denver>Question Details

roberthaney46, Home Buyer in Tinton Falls, NJ

We have informed our realtor that we want to cancel our listing agreement.

Asked by roberthaney46, Tinton Falls, NJ Thu Apr 11, 2013

He picked up his sign and lock box immediatly and dropped an amend / extend contract with broker. It states under additional provisions: This listing agreement is terminated, hold over provisions apply. What does this mean? Hold over provisions apply

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Answers

9
Hello Robert,

Hopefully the below paragraph from our Colorado contract is helpful. Please feel free to contact me if I can be of additional service.

7.3.3. Any Sale (or Lease if § 3.5.2 is checked) of the Property within calendar days following the expiration of the Listing Period (Holdover Period) to (1) to anyone with whom Broker negotiated and (2) whose name was submitted, in writing, to Seller by Broker during the Listing Period including any extensions thereof, (Submitted Prospect). Provided, however, Seller Shall Shall Not (check one) owe the commission to Brokerage Firm under this § 7.3.3 if a commission is earned by another licensed real estate brokerage firm acting pursuant to an exclusive agreement entered into during the Holdover Period and a Sale or Lease to a Submitted Prospect is consummated. If no box is checked above in this § 7.3.3, then Seller shall not owe the commission to Brokerage Firm.

Best,
Andy Eisenbaum

Broker-Owner
Irontree Real Estate
(303) 335-9801
Web Reference: http://www.IrontreeRE.com
2 votes Thank Flag Link Thu Apr 11, 2013
We have also asked our current broker for a termination of our contract, two months prior to the listing end date. They provided a form that simply states "Listing to be Withdrawn 10/31/13", all other conditions of te contract are still in effect. I do understand Sectio 7.3.3 of our contract. We have NEVER been provided the names of any potential buyers, nor have we had any written offers on this property. So, I believe in our case, Section 7.3.3 is moot (note: the hold over period is 180 days, not 60 on our contract). What we want to do is immediately list it as "For Sale By Owner." I believe we can go ahead and do that, as of November 1st.

Any professional advice on my interpretation of our situation?
0 votes Thank Flag Link Mon Oct 28, 2013
Musso, feel free to contact me to discuss (303)335-9801.

Best,
Andy Eisenbaum
Broker-Owner

Irontree Real Estate
Info@IrontreeRE.com
http://www.IrontreeRE.com
Flag Tue Oct 29, 2013
Delux Team covered this answer well.
0 votes Thank Flag Link Tue Apr 30, 2013
Your listing contract stipulates that if a potential buyer has seen your property during the length of time your listing agent had it on the market and comes back and makes an offer to buy it and you accept the offer the listing agent was then the procuring agent and therefore is entitled to whatever commission you contracted with him for in the listing agreement. Show your original listing agreement to your new listing agent prior to signing up with him/her or show it to an attorney it is a legal and binding contract with potential legal and financial ramifications. Note the holdover time perior. Contact an attorney for legal advice in your area.
0 votes Thank Flag Link Sun Apr 14, 2013
Are you listing with another agent? If you are not and a buyer that saw the house while your Realtor marketed the property comes back and puts an offer that closes then you still have to pay Realtor as his marketing brought the buyer. This is Colorado law.
0 votes Thank Flag Link Thu Apr 11, 2013
Andy is correct. Check your contract. In laymen terms, this means if you severe the contract with your listing agent, and they are the 'procuring agent' they still are entitled to commission if you sell to someone who viewed your home, and made an offer, possibly, 'on the side', in order to not pay the listing agent. The average is 60 days. It is standard. I hope that helps.

Best,

Diane King
Broker/Owner
Front Range Properties
303.237.4848
0 votes Thank Flag Link Thu Apr 11, 2013
Robert,

Sorry things did not work out with your listing agent. The language below is from the Colorado contract. I see you are writing from New Jersey. Let your new listing agent know what happened and have him go over the language in your New Jersey contract that applies to making a change of agents. You should be fine, but don't assume anything until you get good counsel and understand your legal position in whatever state you are in.

Robert McGuire ASR
Realtor/Consultant
Your Castle Real Estate
http://rmcguire.yourcastle.org/
0 votes Thank Flag Link Thu Apr 11, 2013
Hi Robert,

I'm a little unsure of all the details as they relate to Colorado practices - is the home you're selling in Colorado, even though your profile says your in New Jersey? In Colorado, there is a holdover period defined in your listing agreement. IF your ex-agent has negotiated with a buyer (or a buyer's agent) and IF that buyer is on the list of names he needs to give you, and that buyer consummates the sale within the holdover period, you MAY have to pay him some commission. There are several checkboxes on your original listing agreement which will define some of the specifics. If you choose to go with another agent, definitely tell them about the situation and show them your terminated agreement. If the blow-up was for a good reason you won't scare your new agent off - and you may save yourself a lot of aggravation and expense if someone who had looked at the house previously ends up buying it. Chances are your new agent will have more insight based on the particular situation. He or she may very well also suggest you talk to an attorney to be on the safe side. You probably don't want to run the risk of having to pay double commission!

If you are considering re-listing your home, we'd e very interested in chatting in more detail!

Best of luck,
Tony & Karen
720-427-4836
0 votes Thank Flag Link Thu Apr 11, 2013
Hi,

It was great of Andy to give you the contract language, is this property in Colorado? If not read through your agreement, it will be similar to the Colorado contract.

Did your former broker drop off a list of buyer names applicable to the hold over clause? When you choose your new broker be sure to inform them of what has taken place. You don't want to get caught up in a commission dispute and you certainly don't want to pay commissions to two listing agents.

Respectfully,
Kasha Songer, CRS GRI
303-587-4015 mobile/text
KashaSonger@gmail.com
Top Producer 2010 and 2008

Preferred Properties, Inc. Opportunity knocks. Experience opens the door.
1041 S Gaylord St. in Washington Park
Denver, CO 80209
303-778-8222 x107
0 votes Thank Flag Link Thu Apr 11, 2013
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