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  1. #1
    Maxee is offline Junior Member
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    Question Obligation to Realtor/Protection Clause

    What is the name of your state? Illinois

    We have a property listed and the contract expires shortly. We (not the realtor) showed the house but advised of the contract expiration date. The protection clause is 90 days. Are we obligated to the realtor if the interested party makes an offer after the contract expires? We did advise buyer what we would take as a price but no firm agreement.

    By the way, interested buyers are a Hurricane Katrina displaced family we met in church and they wanted to look at house immediately. In hindsight not sure if it was the right thing to do legally.

    Your thoughts???


    Please, no response from realtors.
  2. #2
    HomeGuru is offline Senior Member
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    Quote Originally Posted by Maxee
    What is the name of your state? Illinois

    We have a property listed and the contract expires shortly. We (not the realtor) showed the house but advised of the contract expiration date. The protection clause is 90 days. Are we obligated to the realtor if the interested party makes an offer after the contract expires?


    **A: yes, read the protection clause in your Exclusive-Right-To-Sell listing contract. You do have that type of contract correct?
    *******
    We did advise buyer what we would take as a price but no firm agreement.

    **A: anything verbal is not enforceable anyway. Contracts for the sale of real property must be in writing to be enforceable.
    **********
    By the way, interested buyers are a Hurricane Katrina displaced family we met in church and they wanted to look at house immediately. In hindsight not sure if it was the right thing to do legally.

    **A: it is your house os you can legally show the property on your own and do the deal on your own. You owe the commission regardless.
    ***********

    Your thoughts???


    Please, no response from realtors.
    **A: why don't you want responses from Reatlors. Realtors know the listing contract provisions better than anyone.
    Last edited by HomeGuru; 09-26-2005 at 12:02 PM.
  3. #3
    Maxee is offline Junior Member
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    Thanks

    We figured as much We may just wait out the 90 days and just rent out the house.

    We spoke to a realtor friend this am. He did not want to touch the question at all. To be quite frank, I am rather distrustful of realtors at this point. We have had a bad experience with ours and quite honestly would not like to see him get any commission at all. He has done very little to help us other than to put a sign in our yard and hold 2 open houses that he had a new agent oversee (and did not show up on time). However, we want to do what is right.

    Realtors if you want to respond, go ahead! I'm sure you all are not like the one we have!

    Maxee
  4. #4
    HomeGuru is offline Senior Member
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    Quote Originally Posted by Maxee
    We figured as much We may just wait out the 90 days and just rent out the house.

    We spoke to a realtor friend this am. He did not want to touch the question at all. To be quite frank, I am rather distrustful of realtors at this point. We have had a bad experience with ours and quite honestly would not like to see him get any commission at all. He has done very little to help us other than to put a sign in our yard and hold 2 open houses that he had a new agent oversee (and did not show up on time). However, we want to do what is right.

    Realtors if you want to respond, go ahead! I'm sure you all are not like the one we have!

    Maxee

    **A: thanks for the update.
  5. #5
    Maxee is offline Junior Member
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    Update......

    It appears we may have a loop hole. Our intention was to rent the house and that was why we showed it to the couple. A friend who is a broker states that the protection clause was initiated to protect the broker in case the broker shows the house and then the interested party tries to negotiate with the seller after the contract expires. We will also be talking with our attorney for further clarification as our intention was to rent the house not sell it at the time of showing.

    Maxee
  6. #6
    HomeGuru is offline Senior Member
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    Quote Originally Posted by Maxee
    It appears we may have a loop hole. Our intention was to rent the house and that was why we showed it to the couple. A friend who is a broker states that the protection clause was initiated to protect the broker in case the broker shows the house and then the interested party tries to negotiate with the seller after the contract expires. We will also be talking with our attorney for further clarification as our intention was to rent the house not sell it at the time of showing.

    Maxee

    **A: nice try**************.
  7. #7
    Maxee is offline Junior Member
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    We'll see. We will wait out the 90 days if we have to.
  8. #8
    HomeGuru is offline Senior Member
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    Quote Originally Posted by Maxee
    We'll see. We will wait out the 90 days if we have to.

    **A: read your contract again.
  9. #9
    Maxee is offline Junior Member
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    We have read our contract. Scheduling appointment with our attorney for clarification. Will let you know how it is resolved.
  10. #10
    HomeGuru is offline Senior Member
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    Ok. keep is posted.
  11. #11
    Maxee is offline Junior Member
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    Smile Update......

    Quite a bit to report. All good....

    Spoke to attorney who suggested that we could fail to advise realtor of the offer (not an option for us), wait out the 90 days and rent the house to the buyer, or negotiate the commission with the realtor as we had a buyer. Because of our community and the cirumstances surrounding the purchasing family our attorney felt the real estate office would want to settle this very quitely.

    We opted to speak directly to the realtor and he actually stated that he morally could not take a commission under the circumstances. It did help that the family has received some press coverage. Of course the owner would have to approve and he felt that would happen. What a miracle! We have had a long standing relationship with him and the fact that we were honest spoke volumes to him. However, since he had all the paperwork we opted to pay him 1% if he would handle the transaction. The purchase agreement was signed and we hope to close by the end of the month!

    We realize just how fortune we are as we able to resolve this to everyone's satisfaction.

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