60 day contract extension of sorts...

Asked by Bob, Central Lawrenceville, Pittsburgh, PA Wed Feb 4, 2009

Here is a situation - I spoke with a homeowner during the summer of 2008 about purchasing their house. They did not have it listed at that point. Talks stalled for various reasons and they ended up listing the house with a Realtor. The contract with the Realtor expires in a month or so, but the homeowner claims there is a clause in their contract which restricts their ability to sell for an additional 60 days. Supposedly, they can stil sell the house, but the agent who listed the house will get the commission. I am possibly interested in the house now, but I'd like to avoid using a Realtor (don't take offense, I can just do this on my own and save a lot of money - the seller will discount his house the commission). Because of interest rate fluctuations, I'd rather not wait that additional 60 days. Can anyone shed light on this contractual clause? Is this common? Can we get around it because we spoke to the homeowner way before it was listed? Thanks for your imput.

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John Burns, Agent, Souderton, PA
Fri Mar 20, 2009
Contact the listing agent direct and offer them 25% of their fee. They may be happy to get something for all their work rather than wait the 60 days and get ZERO.
Web Reference:  http://www.sepennahomes.com
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Everard Kort…, Agent, Lancaster, PA
Thu Feb 5, 2009
This can be a difficult situation and I went through those kind of issues my self as realtor.For example A house that I listed was sold a few weeks after the end of the listing.The owners wanted to terminate the listing because they decided not to sell anymore.The owners claimed that these buyers showed up after the yard sign was gone,but is very likely they saw the advertising in print or internet or virtual tour .It is also very possible that there was an agreement like where you are talking about. End the listing and sell it your self. This is not very ethical, but it can be done.If the owner want to cheat on their realtor I would be carefull ,Maybe they are cheating on you too.
If however you honestly know that you have met these people and discussed a potential house sale several month before it was listed and their listing agent was never involved with you,I would ask the owners the see the listing contract. and check the exact wording.and wait till the contract expires. If you want to buy now, I think a good compromise would be to work with the listing agent , and maybe agree to have him/her get their seller commission , but use the buyer part as a rebate of the sales price .I would be fine with that.
I like solutions where every one wins .We call that mutuality of benefits.
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Chris & Step…, Agent, Philadelphia, PA
Wed Feb 4, 2009

Great question... "The Clause"

The clause is there for a pretty good reason for the most part. MY UNDERSTANDING of it is that if the Realtor's marketing, advertising, or actions regarding listing the property had an influence on your becoming aware that the property was for sale, then that Realtor would like to be paid for that occurance. When the seller signs the listing arrangement with "the clause" then the seller in essence is saying to the world... Yes. I agree that I will pay a comission if a sale should occur after X-days after the listing expires if my Realtor's actions helped bring the buyer." If the Realtor is like my husband and I, who spend an enormous amount of our time, energy, heart, soul, and earnings on bringing attention to our listings, then it is important to honor that clause out of good will or basically just doing the right thing.

Did the Realtor's sign or ads make you aware that the property was for sale? Or did the Realtor's actions make someone you know aware that the property was on the market and then they told you?

Here is another thought. If the Realtor's actions were minimal in your opinion and inthe seller's opinion, perhaps all 3 of you can discuss a mutually satisfying and agreeable way to satisfy all of your goals. Negotiate, compromise, and do what is best for all parties in this triangle. It sounds like everyone needs some representation in this scenario.

A referral fee such as 25%, a transaction licensee fee, or a flat fee or 3% for example are 3 options you can discuss. Now, many of my fellow Realtors might slam the hammer on me and say , "A contract is a contract! Whay have a contract if you are just going to go back on your word?" And I suppose they'd kind-of be right in legalistic terms. But life doesn't roll like that. Right?

I do hope you get the home. I'll bet that that Realtor would like you to get the home as well. Do a good thing and you will be blown away by the positive things that can happen as a result.

Generosity rocks! I hope that does not sound to hippie-dippie :)
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Bob, Home Buyer, Central Lawrenceville, Pittsburgh, PA
Wed Feb 4, 2009
Thank you for the quick responses and for those who ACTUALLY answered my question. I specifically noted that I am NOT interested in going through a Realtor, so the suggestions to get a buyers agent were unnecessary. And concerning Michael's response, I will not be paying any sort of commission, but the home seller has indicated that they would discount the house the 6% Realtor commission if I purchased it without Realtor. So, if I purchase the house using Realtors, the asking price will be higher. If I purchase the house without Realtors, the asking price will immediately be lower. Therefore, I will be saving money. I am an attorney and I know many real estate attorneys, so a Realtor simply isn't necessary in this one instance.
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sandra Jeffe…, Agent, clare, MI
Wed Feb 4, 2009
you should obtain a Buyers Agent and work through that agent. the agent will protect your interest and work in your behalf.. The market is soft and now is the time to get a really good price,
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Michael D De…, , 18969
Wed Feb 4, 2009
In most cases, the seller is paying the realtor. the buyer usually doesn't have to pay the commission. I can't say for sure without seeing the actuall agreement, but this is usually standard.
The very best of luck to you.

Michael D Delp
Mortgage Pro
4802 Old Bethlehem Pike,
Telford Pa. 18969
Ph- 215-453-1025
Fax- 215-453-1012
Cell- 610-762-0318
michaelddelp@verizon.net http://www.mortgagepro.instantlender.com
0 votes
Dallas Texas, Agent, Dallas, TN
Wed Feb 4, 2009
NOTE; never purchase a home unless you have a buyers agent who represents you there are contractual terms and conditions both parties must comply with you could lose your earnest money, sued for non performance of contract many other issues and concerns.

60 day - or + protection period is standard, however if the seller listed you regarding a potential home buyer when listing agreement was signed you could possibly pursue purchase HOWEVER all is governed by listing agreement .
Web Reference:  http://www.lynn911.com
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