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When a property is put on a sale, a real estate agent can represent the owner of the property either directly or through another agent. However, in order to gain the right to represent the owner, the agent needs to enter a contract that gives him or her exclusive right to sell listing. Thus, in this type of an arrangement, when the property is being listed and sold, the owner is required to pay the agent a fee for doing so. In case, the property gets sold prior to the termination of the listing agreement, the seller should pay a brokerage or commission to the agent regardless of whether the owner has sold the property or the broker himself. Besides, if the property owner has already hired a broker, then it is not legally possible for the owner to list the property with some other broker until the existing listing contract has expired. Below are answers to few of the more common legal questions about listing contract laws: How can I inform the broker that I am not willing to sell my property anymore? The listing contract with a seller would get over within a year.
In a case like this, all you would have to do is write a letter to the broker in which you will have to mention that you are not anymore interested in selling your property and that you want to terminate the contract. Usually, the contract you have entered with your broker may include this provision. However, even though the contract does not provide this clause, you are no way held obligated to anyone as far as selling the property is concerned. The property would only be sold if you want to sell it. Otherwise, you have all the rights to terminate the contract at your will. What legal recourse can I take if my agent has failed to exhibit the required amount of interest in selling my property in the last couple of months? I have entered a listing contract with the agent and all he could show was an offer of $40,000, which was not even equal to the price I wanted.
This truly indicates an action of non-performance on behalf of your agent, which you could definitely consider as a violation of the terms and conditions of the contract you signed with him. Therefore, in such a scenario, what you could do is write to the agent stating that you want to cancel the contract because of his lack of performance and his intention to commit a breach with the rules and regulations of the agreement. You have already fixed a stipulated price of the house and there is no way you are obliged to compromise with a price lower than what you had expected or wanted. Moreover, the agent would be legally prohibited to recoup his brokerage from you based on the low offer that he has provided to you. If a broker acquires an offer at a full price on a property that has been listed to sell, is the owner obliged to sell that property? Moreover, in case the property is removed from the market, then in that case, would the broker still owe a commission on that?
Usually, the provisions that have been laid down in the listing agreement which the owner of a property has signed with a broker, would decide whether or not the owner is obligated for paying the commission. If the agreement demands so, then the owner would certainly have to provide a commission to the broker even if the broker has acquired a full price offer. But, under no circumstances, the owner is obliged to sell the property. It does not matter whether the offer is made at a full price or not. Generally, there is no fixed duration for an exclusive right to sell agreement and therefore, both parties can negotiate on it. In most cases, the listing contract would contain a protection period of six months after the contract has expired. It is usually the agents that attach this provision along with the contracts. This particular clause in the contract keeps the buyers from contacting the owners directly and the reason they do this is to make sure that they get their due commission from the buyers for their efforts. But despite all of this, it is the way the agreement has been worded that would ultimately decide the obligations of both parties that is the agent and the owner. If you need any clarification about your particular situation on the subject, you may wish to ask a real estate lawyer for legal insight based on an expert evaluation of your circumstances.
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