Home Selling in Santa Monica>Question Details

Smpier, Home Seller in Santa Monica, CA

listing agreement expires during escrow

Asked by Smpier, Santa Monica, CA Thu Mar 18, 2010

Listing agreement was signed for three (3) months which will expire in one month currently in escrow. Does this mean that it has to close within one month and if I don't renew listing agreement then what would happend to buyer's offer in escrow?

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Answers

13
Smpier...

Congratulations! You hired your agent to sell your property for you and they succeeded. As far as this deal goes, you're good to go.

Should the property fall out of escrow and you need to put it back on the market, then you'll want to extend the listing agreement using a Modification of Terms document.

Best….

Jodi Summers
The SoCal Investment Real Estate Group
Sotheby’s International Realty
310. 392.1211
jodi@jodisummers.com
**
The highest form of wisdom is kindness. —The Talmud
3 votes Thank Flag Link Thu Mar 18, 2010
Thanks for your answer - I needed to fill out just that form and was drawing a blank as to what it was called! Appreciate your help! :)
Flag Thu Jun 27, 2013
This is not legal advice since for that you have to consult an attorney. As a Broker the following is my interpretation of what applies in your situation..

The answer to your question depends on what kind of listing agreement you have used. If it is the C.A.R. form, which is an employment contract with the Listing Brokerage then the listing broker has met the terms of the agreement if a ready, willing and able buyer is procured and you accept the offer of the buyer. In the C.A.R. Form it even covers the contingency if the agreement were to expire during escrow. In your case, and if you used the C.A.R. form without any amendments, then you do not have to close escrow in a month's time just because your listing agreement is expiring. If you do not renew the listing agreement, the escrow still continues and the buyer's offer is valid.

Bob Khalsa
President & Broker
United America Realty
661-513-9390
1 vote Thank Flag Link Thu Mar 18, 2010
It does not mean that your sale has to close within one month.

There is no need to renew the listing agreement unless your sale fails to close and you want to put the home back on the market.
1 vote Thank Flag Link Thu Mar 18, 2010
Your listing agreement is between you and your broker/agent. The purchase contract you have is between you and your buyer. Neither agreement affects the other but I would suggest that you check the listing agreement to see if spells out how this situation will be handled.
0 votes Thank Flag Link Fri Aug 31, 2012
I would aLSO look to your Santa Monica agents to answer this question.
0 votes Thank Flag Link Wed Mar 24, 2010
Thank you all for such an input to my worry I hope this buyer can make it to the end cause my friend's house was in escrow for more than three months from one buyer who had hard time getting the loan although he did provide the seller with the letter from the bank saying that he qualilfied etc...I am not sure if I want to renew the listing contract.
0 votes Thank Flag Link Fri Mar 19, 2010
Smpier:

Since you are a California Seller, the following California Realtors deserve kudos for the best answers:

@Bob Khalsa: Right on!

@Jodi Summers: Totally correct!

And a Shout Out to the inestimable Out-of-State denizen of Seattle ...

@Mack McCoy: 2 thumbs up for your absolutely correct and completely non-sarcastic response!!
.
0 votes Thank Flag Link Thu Mar 18, 2010
Hello Smpier

Since you are in escrow I would extend the congract. The escrow is still in tact because your agent was the procuring cause.

Best,

Monique Carrabba
The Carrabba Group
Kelelr Williams Hollywood Hills
mcarrabba@kw.com
(323) 899-2900
0 votes Thank Flag Link Thu Mar 18, 2010
I would just have the seller sign a change to the listing agreement extending the expiration date, just as simple as that so there is no doubt. -eSorgen
0 votes Thank Flag Link Thu Mar 18, 2010
you can renew the listing or just close escrow even though the listing expires.

Megan Whalen
Gibson International
310-613-1102
0 votes Thank Flag Link Thu Mar 18, 2010
Dear Smpier,

So do you have a offer agreeement along with a listing agreement? Which broker is holding the escrow - listing brokeror buying broker? I am not sure how the CA contract reads, but typicallyanswers to questions like these tend to turn back to how the contract is written.

I am not a real estate attorney, but from your information, if this were in SC, the listing agreement lies with the broker of the real estate agency .... if there is a purhase offer on your home it is a legally binding document with a commission agreement with the brokers involved.

Not sure why you would not renew the listing agreement if there is a purchase offer in the process?

Bottom line: how does the contract read?

Regards,
Maureen
maureen@maureencody.com
0 votes Thank Flag Link Thu Mar 18, 2010
A few reasons why a seller would not want to renew the Listing: 1) How about if the house has been on the market too long and you'd like to rent it out if the sale doesn't go through 2) You want to take it off the market if the sale doesn't go through and try again at a later date 3) The seller wants to wait 6 months and put up for sale by owner to avoid paying the commission. 4) You don't like the agent and don't want to deal with him/her any longer. 5) The buyers are weak/ bad financing/ flakes... etc... and you don't think the sale with go through.
Flag Thu May 29, 2014
Smpier
You have a signed contract and it is in escrow, you are obligated to pay!
0 votes Thank Flag Link Thu Mar 18, 2010
No, it does not mean it has to close within that period--the agent is entitled to his/her commission anyway, and if you have an executed contract, signed by all parties and money was exchanged the offer remains; however, if you like your agent why not extend the agreement anyway.
0 votes Thank Flag Link Thu Mar 18, 2010
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