Limited Service Listing Agreement - is it valid?

[forum99]

What is the name of your state (only U.S. law)? Florida

I am selling a condo in Florida, by owner. However, a buyer's agent approached me and just for one specific client of theirs, we entered into a Limited Service Listing Agreement, which states:

"Compensation
Seller will compensate Broker for performing responsibilities delineated in Ph 4 and 5 a 3.5% of List Price (of $104K) or purchase price not less than $95K, (date) regardless whether the Property sells and no matter who sells the Property, whether by Seller, Broker, or other real estate licensee. "

"Additional Terms: Agent solicits for one client to buyer from her list of contacts <initials broker> <initials seller /my initials>".

Here are the problems:
1. Turns out, the clients the broker brought to me after we signed this agreement, were the same people that came to see my condo the previous day, completely on their own and without a broker. So I already knew these people and they were not introduced to me by the broker. We even talked price and negotiated. They never mentioned they had a broker.

2. The buyers want to deal with me directly and not use that broker. I don't know if they have a contract with that broker or not, I asked and they said they don't but I can't be sure.

3. When we talked price 1-1 with the buyers, we only talked about 90K. The agreement with the broker is about listing price of 104K, and sell price no less than 95K.

My Questions:
1. Is this contract enforceable, is it valid since the buyers met with me alone first?
2. Bottom line, do I have an actual way to get out of this contract and deal with the buyers on my own? I feel I don't need to pay commission since I met the buyers first (before this contract) and even talked price with them which is actually lower than the contract stated list/sell prices.
3. If I deal with the buyers directly and we agree on a sale price of say $89K, does that make the contract unenforceable since the listing and sale prices are below stated? Or do I owe commission to the broker anyway?
4. Should I contact the broker and let them know their buyers are going behind their back, is this ethical on my part to do that?
5. If I sell the condo directly to these buyers for say 89K (without the broker), what can this broker do to me based on this agreement and do they have a chance of winning and why?

Thank you for any help with this situation.

 

[Dave1952]

It's difficult to give advice on bits of a contract.. Take the whole contract to a lawyer. I'd ask this broker who he represents in this deal because it sounds as if you have hired him. The buyers are very clear that they have no contract with this guy

 

[quincy]

I agree with Dave1952 that all facts along with the contract in its entirety needs to be reviewed to tell if the contract is enforceable as written under the facts as presented.

These are not uncommon contracts, by the way, and if the Realtor used a standard agreement form, it is likely legally binding on the signators. If you try to avoid paying the Realtor an earned 3.5% of the sales price by arranging some off-the-record agreement with the buyers (finance low but pay cash for the remainder or something), this can get you sued.

If you have a buyer lined up, a personal review by an attorney in your area of the contract you signed with the Realtor would probably be worth your expense.

 

[latigo]

What is the name of your state (only U.S. law)? Florida

I am selling a condo in Florida, by owner. However, a buyer's agent approached me and just for one specific client of theirs, we entered into a Limited Service Listing Agreement, which states:

"Compensation
Seller will compensate Broker for performing responsibilities delineated in Ph 4 and 5 a 3.5% of List Price (of $104K) or purchase price not less than $95K, (date) regardless whether the Property sells and no matter who sells the Property, whether by Seller, Broker, or other real estate licensee. "

"Additional Terms: Agent solicits for one client to buyer from her list of contacts <initials broker> <initials seller /my initials>".

Here are the problems:
1. Turns out, the clients the broker brought to me after we signed this agreement, were the same people that came to see my condo the previous day, completely on their own and without a broker. So I already knew these people and they were not introduced to me by the broker. We even talked price and negotiated. They never mentioned they had a broker.

2. The buyers want to deal with me directly and not use that broker. I don't know if they have a contract with that broker or not, I asked and they said they don't but I can't be sure.

3. When we talked price 1-1 with the buyers, we only talked about 90K. The agreement with the broker is about listing price of 104K, and sell price no less than 95K.

My Questions:
1. Is this contract enforceable, is it valid since the buyers met with me alone first?
2. Bottom line, do I have an actual way to get out of this contract and deal with the buyers on my own? I feel I don't need to pay commission since I met the buyers first (before this contract) and even talked price with them which is actually lower than the contract stated list/sell prices.
3. If I deal with the buyers directly and we agree on a sale price of say $89K, does that make the contract unenforceable since the listing and sale prices are below stated? Or do I owe commission to the broker anyway?
4. Should I contact the broker and let them know their buyers are going behind their back, is this ethical on my part to do that?
5. If I sell the condo directly to these buyers for say 89K (without the broker), what can this broker do to me based on this agreement and do they have a chance of winning and why?

Thank you for any help with this situation.

The "help" you need appears to be in understanding the meaning of the alternative "OR" clause as found in Paragraph 3 of the subject Limited Service Listing Agreement *:

"3. PRICE AND TERMS The property is offered for sale upon the following terms, OR any other terms acceptable to SELLER . . . ." [SUP] (Emphasis added)[/SUP]

It shouldn't be necessary to explain that regardless of what kind of a deal you might personally make with a buyer would be on terms acceptable to you.


[*] As adopted by the Florida Association of Realtors.