After a listing contact expires, is there any commision obligation to the broker if a person 1st saw house while under contract.

Asked by Whitney, 01810 Tue Nov 15, 2011

My e-mail-- wseavey@comcast.net

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23
Amy Mullen, Agent, Shrewsbury, MA
Wed Nov 16, 2011
Louis,

Not making assumptions - just pointing out yet another way this could get complicated. My initial advice still stands...consult with a lawyer before moving forward. Have all the documents reviewed. Agency could very well come into play if that situation occurred.

Amy
1 vote
Louis Wolfs…, Agent, Needham, MA
Wed Nov 16, 2011
Absolutely not.

No contract no fee, no agency, no fee due. Also at the time that agent was representing the seller, cant be a dual agent without full disclosure and approval of the parties. But seller has no obligation to compensate that agent as the home is not on the market and no fee being offered. And the agent now represents the buyer.

I believe you were considering the agent as a procurring cause. Not so, as it is not on the market.

All would be open to negotiation. But your also makiing many assumptions, listing agent, showing buyer other homes, buyer is not represented presently by buyers agent, Sellers former agent, becomes agent for the buyer and so on.......

The question was is the seller obligated, simple answer, contract stipulates grace period, or if seller wants way around grace period, go to the 500 entry only brokerage companies. Isn't real estate getting to be fun

When I use to represent buyers for commercial deals, buyers paid my fee. That is buyers brokerage - reason that is not done in residential is due to they have not found a way to include that fee in the mortgage.
1 vote
Amy Mullen, Agent, Shrewsbury, MA
Wed Nov 16, 2011
Louis,

If the seller's agent showed the house to a buyer...then showed other houses to that same buyer. That agent could be viewed as a buyer's agent for that buyer. In addition...if the contract had a grace period and that same buyer who has now seen other houses besides Whitney's comes back to Whitney's house - the agent could very well be a dual agent.

Tricky stuff with the agency Louis! :)

Amy
1 vote
Louis Wolfs…, Agent, Needham, MA
Wed Nov 16, 2011
Amy a buyers agreement is with the buyers agent, not the seller. If a contract expires, no grace period and the buyer comes back to the seller, with or without a buyers agent, the seller has no contractural obligation to compensate the buyers agent. Most buyer agreements state that they will first look for compensation from the seller, but in the event it is not being offered, then it will be the buyers obligations.
1 vote
Deb Forte, Agent, Andover, MA
Sun Apr 27, 2014
Does your contract extend out anytime after the expiration date for any deals that are being worked?
0 votes
Kevin Vitali, Agent, Tewksbury, MA
Sun Jun 30, 2013
It really boils down to the listing contract. I know what my listing contract says, but what you signed could be different.

What agents use around here for a listing contract, states that if it is relisted and sold to a previous viewer no commission is due. But if it has not been relisted with another agent then if with in so many days of the expiration you and the buyer put the deal together then the commission will be due to the agency.

But, READ THE CONTRACT, before making any assumptions.
0 votes
Territory.c…, Agent, MA,
Wed May 9, 2012
I know repeat but: Read your listing contract first and then if there is no period after which the contract expires you may be in the clear.

good luck!
Web Reference:  http://territory.com/
0 votes
Yuan Li, Agent, Carlisle, MA
Wed May 9, 2012
The answer is Yes...

Of course, if that person comes to you again in about 6 months, then it's a different question. But in summary, it was your listing broker's effort/marketing money to bring in the buyer from the first place, ethically speaking, he/she should be offered the credits.

Yuan's Team Realty
0 votes
Irina Karan, Agent, Aventura, FL
Fri May 4, 2012
Hello Whitney,

The answer is in your listing agreement - sometimes there is a 180 days period that covers this, sometimes it is 90 days or none.

Best of luck,

Irina Karan
Beachfront Realty, Inc.
IrinaKaran@gmail.com
0 votes
Kevin Vitali, Agent, Tewksbury, MA
Tue Feb 28, 2012
It all boils down to the listing contract. Read the listing contract and see what is said. If you are listed with another agent, most contracts address that and no commission would be due to the first broker. If you are not under contract with a listing agent and a buyer comes to you there may be language where the agent would receive a commission.

Read the contract, they can all be slightly different.
0 votes
Heath Coker, Agent, Falmouth, MA
Fri Nov 18, 2011
It looks like you have answers all over the place. I'd suggest that you first read all the paragraphs in your listing agreement. There may be a protection clause that keeps buyers and sellers from waiting out a listing agreement in order to bypass the listing broker/agency.

I'd also ask an attorney, because if you do owe a commission, you need to consider that in your negotiations. Be wary of a buyer who has seen the house with an agent and now wants to deal with you directly. They are already showing signs of that they may be less than principled.
0 votes
Paul Consoli, Agent, Haverhill, MA
Wed Nov 16, 2011
Its important to look at your listing agreement for the answer. The previous agennt is correct about the extension provision however nothing can prevent someone from bringing you to court. Always defer to an attorney.
0 votes
Alan May, Agent, Evanston, IL
Wed Nov 16, 2011
Most agency listing contracts contain a "protection period". Look at the marketing agreement you signed with the agency and see what it is. It's not uncommon to see 3 months, or 6 months and even as long as 12 months.

And that would mean that if a person saw the house, while you were contracted with that agency, their commission would be protected, if that person bought the house within the protection period.

So, very possibly, "yes". Every agency has a different protection policy, so check the agreement. Also, you should note, that most agencies waive the protection period, if you hire a new professional agency to represent you. So the minute you hire a new agency, that protection period becomes null and voice.. (but again, check the language in the agreement you signed... it will spell it our clearly).
0 votes
Paulette Zue…, Agent, Andover, MA
Wed Nov 16, 2011
It really depends upon the terms of your contract. I agree that the best advice is to review your documents witlh your attorney, Many legal battles have been fought over this issue.

Paulette@YourPaulette.com, ReMax Partners
0 votes
Mark & Bridg…, Agent, Radcliff, KY
Wed Nov 16, 2011
That is an Agency question and most likely varies by state. The best source would be your state's Real Estate Commission or Legal Counsel.
0 votes
Mike Sullivan, Agent, Gainesville, FL
Wed Nov 16, 2011
Probably so...in most contracts there is a provision which is referred to as a 'protection period' under the compensation sections. Review the contract carefully to see what, if any ovligation is owed the broker.
0 votes
Amy Mullen, Agent, Shrewsbury, MA
Tue Nov 15, 2011
Whitney

Mike's answer is absolutely correct - it also depends on if that person has been working with that agent in a buyer's agent capacity (with signed representation) since they saw your house. Lots to consider here...your lawyer would be the best person to review the contract before you move forward with this buyer.

Amy
0 votes
Michael Cons…, Agent, North Andover, MA
Tue Nov 15, 2011
Whitney,
The answer is in your contract as others said. Nobody here can give you a yes/no without seeing your contract, so be careful which advice you take.
I live in North Andover and am happy to assist. Call/text or email me.
Thanks,
Mike
978-376-5755
Mikeconsoli@comcast.net
Web Reference:  http://www.mikeconsoli.com
0 votes
Louis Wolfs…, Agent, Needham, MA
Tue Nov 15, 2011
Not necessarily. It as Patti says below it depends on your contract and how long a grace period there is, if any at all.

Also if you list your home with another company and there are companies that have reduced fees for reduced services, the grace period with your original agent does not apply and no fee would be due that agent.
0 votes
Barbara Sull…, , Andover, MA
Tue Nov 15, 2011
Yes, there is a contract obligation with the listing Broker.
0 votes
Anna M Brocco, Agent, Williston Park, NY
Tue Nov 15, 2011
Review your original listing agreement, the answer can be found in the documents....
0 votes
Patti Martin, Home Buyer, Boxford, MA
Tue Nov 15, 2011
Depends on what you and your original listing agent agreed to in your listing contract. Usually there is a 30 - 60 day grace period. Refer to your old contract.
0 votes
Masha Sender…, Agent, Newton, MA
Tue Nov 15, 2011
Usually, yes. Look on your contract, there is an expiration date on that time of a transaction.
0 votes
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