Listing agent back out contract; May need an attorney

[Weng L.]

Hi

I have an executed contract on a new construction property. The construction can't finish on time so we need an addendum to extend the contract and the closing date. However the listing agent is trying to back out the contract.

The listing pays buyer agent commission 3% which is $18,000 (listing agent commission is also 3%). I didn't use a buyer agent on these transactions so on the contract we have the listing agent crediting 2% which is $12,000 to me to cover closing costs (thus the listing agent gets 4% commission which is $24,000). Now the listing agent wants me to give up the 2% so she gets the entire 6% commission. She threatens me that if I don't give up the 2% she will not extend the contract (she said her attorney was able to back out other buyer's contract to increase the price because market value has gone up after we signed the contract).

We use standard Florida “AS IS” Residential Contract For Sale And Purchase. This is what we have on the contract:

Any advise is appreciated!

If I have to use a real estate attorney to sue the seller, do you have any recommendation of a reliable real estate attorney? I am located in south Florida. 

[Patricia Steiner]

Two things you can do to turn this around:

1.  Call the Title/Escrow Agent.  Advise that the closing has been extended at the builder's request, that you've signed the addendum but the listing agent is holding it hostage under the threat of cancellation should you not agree to pay her a 2% commission.  Ask for their intervention and let them know that you will be pursuing this further as well.  Escrow Agents hate anything that could make the escrow in play as it falls on them to resolve.  Let that agent make a phone call or two.  

2.  Call the listing agent's broker; state that you hope this can be resolved with the Broker's intervention.  Remain calm and share that you expected more from their firm, you thought the Broker should know, and intervene.

The owner pays the commission and cannot alter your transaction as a result of commissions.  Be sure you know what your contract states as far as price adjustments due to escalating building costs - but commissions are not part of the equation.  You may need to consider filing a complaint with the local Realtor Association and the state's Real Estate Commission.  Bottom line - you've incurred costs as a result of entering into the transaction and you fully intend to perform in compliance with the contract - but no tantrum of any size will make you pay this listing agent one dime; her commission is between herself and the owner.  

Don't talk to the listing agent any further. Let the Title Agent and Broker escalate this with her.  And, I'm sorry you're having to deal with this.  There are a lot of "entertaining" people in the dirt business and she is one we can all live without. 

Best...