List Commissions Dispute???

Question

Good afternoon,

I have an issue were a seller decided to hold off on the listing and postpone all showing until the husband felt better. They never cancelled the agreement because they didn't want to pay a cancellation fee and instead preffered to keep it active and a prove showing case by case. Long story short an agent contacts me 1 day after the listing expired out of no where to let me know she is showing them condos. And was alarmed when she was told by the buyer(my listing client) that she has a pending sale from a buyer who knocked on her door after seeing my sign, who made her an offer and the seller made the agreement to sell the house after my listing agreement expired. Even more alarming is the buyers agent negotiated this illegal agreement. It is my understanding I am entitle to my commission because the offer was made during the time I held the listing and the buyer came as a result of my marketing efforts.

Has anyone taken this to court and how did it turn out for you?

I am wondering if it is worth the time spent in court for a $12,600 commission.

Thanks for any advice received in advance!

Greg H. · Answer

I would file a complaint with the local Board of realtors as they typically have a process to handle disputes between brokers.  Small claims would be an option as well

In Texas at least, Brokers are not parties to the purchase contract and title companies are not going to deal with these types of issues

John Thedford · Answer

It sounds like you are owed a commission

Cason Acor · Answer

Most exclusive right to sell agreements have a grace period where within a certain amount of time after the listing expires, if an offer is accepted from a buyer who was found while you held the listing, you are entitled to the commission. I would be shocked if your listing agreement didn’t have this provision. Double check, but it seems like a pretty cut and dry breach of contract case.

John Thedford · Answer

does your listing agreement have a protection such as 45 or 60 days within expiration

Manny Cirino · Answer

Following up I contact my MLS boards legal Hotline and they advised me that I absolutely have a case but tgey do not handle commissions disputes I would have to get an attorney.

I consulted with 2 real estate attorneys I have worked with in the passed 1 advised to have my broker persue the commission and 1 said it would be a waste of time.

When I consulted my brokers office they advised me it wasn't worth it. After legal fees, time waiting and brokee split i wouldn't be left with much. I don't think he understood my issue wasn't the money it's the fact that a well known agent aided the buyer in the negotiation

Russell Brazil · Answer

Ask that other agent who the title company is. If they dont tell you, insinuate you will file an ethics complaint, that will likely shake it loose. Send a copy of the listing agreement to the title company. Collect the commission.

Maria McCreless · Answer

@Manny Cirino, does the sellers agent the one who contact you know what closing company?  Has your broker contacted the seller and reminded them of clause in the listing agreement?  Has your broker contact the buyer's agent broker?

I was involved in a similar situation and once the broker called and explained to the seller their obligation to pay the commission and that if they payed the buyers agent their percentage, they would still owe the full 6% to her firm per the listing agreement, the sellers understood their obligation and it worked out.

If all else fails, I would contact every closing company in the area.  If you can get a hold of them before it closes, it will make your life so much easier!

Maria McCreless · Answer

@Manny Cirino, has the deal already closed? If not contact the escrow agent and explain the situation.  They might be able to help.   Also, did you have on MLS or loopnet?

Michael T. · Answer

@Manny Cirino once you contact the title company and send the listing agreement you'll be collecting the commission once it closes.  They hold it in escrow.

If the seller finds out that you'll be entitled to the commission they may come back to you and try to work something out so they aren't potentially paying more in commission.

Ronald Rohde · Answer

Tough news, but probably good advice. Did they offer a $750 demand letter on firm letterhead? If its 2-3 hours trying to negotiate, that may be worth it.

List Commissions Dispute???

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