MLS listing expires, then offer accepted from third party - required to pay commish to listing broker?
My house has been on MLS for a number of months and is due to expire soon. I've been contacted by a neighbor who has expressed interest in buying my home, but without involving the broker in the process. My questions:
1. Am I legally bound to pay commission to the broker once the listing with the broker on MLS expires?
2. I feel my broker has done a decent job trying to market and sell my home. Wondering if others in this circumstance have come to some agreement with their former broker to perhaps pay their 1/2 (2.5%) of the commission to honor their commitment to the process? Or maybe some lesser amount, i.e. 2%? 1.5%?
Since no other broker brought his buyer to me, I feel morally ok with only paying out 2.5% instead of the typical 5% for both sides of the transaction - but I'm trying to understand the legal consequences of the above.
Thanks for any insights/advice you can offer.
Read Similar Questions
- PSA Agreement Broker Liq. Damages clause?
- Selling broker fabrication of a second offer
- Legal Question - Loan Scam - Who do I go after?
- Must broker or real estate agent convey all offers to seller?
- What is a Buyer's Real Estate Agent?
- Can my broker represent me instead of seller?
- Property removal from 40B LIP ?
- Real estate broker said I don't need a lawyer
- Problems after closing
- Fees a broker can collect
Recent Posts about Massachusetts Laws
| Forum | Last post |
|---|---|
|
I have a lease until June 2012, but I am very unhappy with my living situation, I pay half of the rent. I am a....
I cannot answer this question based upon your statement. Who are they....
|
2/8/2012 11:00 by Alexm2012 |
|
Is it legal for Massachusetts employer to send a SALARIED employee home for the day, without pay, for a dress ....
Federal and Massachusetts courts have upheld employee dress codes as l....
|
2/8/2012 09:09 by Munsterwoman |
|
Hi, I'm the grandmother of 4 beautiful grandchildren. The oldest has hit a rough spot with defiance (puberty ....
I'm very sorry about your situation and the ordeal your family is goin....
|
2/7/2012 23:02 by gramy |
|
Hello. I'm in the middle of an appeal for SSDI and my attorney asked me to get a residual functional capacity....
First, I guess it's not a good sign that you do not trust your current....
|
2/7/2012 08:18 by Adam13 |
|
Hi everybody.
I am trying to make an offer on a house, which is an estate sale. As I understand, the execut....
|
2/6/2012 13:50 by ilya980 |
|
I've been helping a friend pay for a lawyer to go to probate court.
Her ex-Boyfriend, whom she is taking to c....
|
2/6/2012 12:21 by rbiddle |
|
If I witness a person getting beat up at a party and just run away without calling the cops or helping the guy....
I don't think so. In terms of civil liability (as opposed to cri....
|
2/3/2012 07:17 by Coller |
|
My father passed away in September. The probate is over and settled, no contests to the will. My mother is the....
Your dad died in September and the probate is already settled – ....
|
2/2/2012 18:50 by JGraul |
|
Hi. My cousin is charged with possession with intent to distribute drugs in a Massachusetts court. He is not a....
Unfortunately for your cousin, if an immigrant is convicted of certain....
|
2/2/2012 08:07 by Sister6 |
|
Just curious if you have any thoughts or have read any information regarding the success rate of divorce media....
Yes, I've also seen the 90% estimate on various websites, with some me....
|
1/24/2012 11:47 by RRM |
|
Several of my colleagues will dictate consultation notes in which they state they don't have the complete hist....
The question probably boils down to whether or not such practice is wi....
|
10/2/2011 18:37 by Anonymous |
Editor's Response
I'm not going to offer an opinion on this one, other than to recommend that you talk to a MA real estate attorney before trying to keep all or part of the commission for yourself. There are at least a couple of issue here. I assume you have an exclusive listing with the broker? If so, what you are trying to do is delay the sale until after the listing expires. Even if you can get around that one, the agent/broker could try to argue that you discovered this buyer through his/her efforts and, accordingly, she is entitled to a commission even though the agreement has expired. Her efforts need not be something as obvious as showing your house to the neighbor. What about open houses? What about the sign she posted on your lawn?
Reply from initial poster
Thanks for both of your replies. I'm confused by your responses, however. As I understand it, I'm contracted with my broker - and will pay him 2.5% of the purchase price of the house, should a transaction close. The neighbor in question is not represented by a broker. What I asked about was keeping my broker "whole" by essentially paying him the 2.5% he would have received (or some other agreed upon amount, asked for opinions on that). Not sure why you perceive that's tantamount to avoiding paying my broker? My thought was that there was no representation on the buyer's side, hence I could pay my broker his portion of the commission, thereby acknowledging him and paying him for his efforts. What am I missing?
Thanks in advance for your thoughts.
Editor's Response
Your broker may feel, rightly or wrongly, that he is entitled to 5%, not 2.5%, as stipulated in your agreement. He may argue that he brought the buyer to you and is, therefore, entitled to his commission.
Perhaps I
Perhaps I misunderstood.
Again, I should refer you to your listing contract. Often a listing taken for 5% would offer an incentive (let's say 2.5%) to a cooperating broker. That is the prerogative of the listing broker to offer from their 5% of proceeds. Generally, your agreement, unless otherwise stated, is to pay the broker 5%. Then the broker, not the seller, pays the cooperating broker. If a buyer comes without representation, the broker is entitled to the entire 5%.
As a real estate salesperson
As a real estate salesperson licensed in the Commonwealth, I would likely pursue a commission under these circumstances. It is obvious by your post that it is your intention to circumvent the payment of commission although the buyer was presented during your listing agreement. In fact, I suggest that you review your listing contract. It may contain verbiage that requires you to refer any prospective buyers to your listing agent. Further, I believe you may have difficulty making the case that the sale was not a result of your agent's efforts, especially if your neighbor came forward after a yard sign was posted.