Listing or Sales Contract

[Ruben Ramon]

I have a standard short sale contract my attorney drafted for me. I used it with a couple who were all excited about the help I was giving them. My plan was to wholesale the property pursuant to my successful negotation of the short sale. They called me up an hour after they signed the contract, and said they wanted out. I responded to them in writing that they had three choices, one, continue wiht the process, two, pay me a settlement, or three get sued by me. He works for GM, and has a UAW attorney. His attorney said that my contract is infact a listing because I specifically reserve the right to assign my contract to a third party in the contract, and because I'm trying to negotiate a short sale. He recommended to the sellers that they file a complaint against me as its an illegal listing agreement. I do not want to go forward with a law suit against them if there is any chance I can get tagged with this listing thing. Following are excerpts from my contract.

BY SIGNING THIS PURCHASE AGREEMENT (Agreement), XXXX, husband and wife, whose address is XXXX (Seller), and XXXX and XXXX, husband and wife, whose address is XXXX (Buyer), agree to sell and purchase the following real estate located in the City of , County, Michigan, described as follows:

Seller shall convey title to the Property to Buyer by delivery of a warranty deed conveying marketable title (Deed) on tender of the Purchase Price. Payment of the Purchase Price is to be made in cash, title company check or bank cashier’s check. Buyer agrees that Buyer will attempt to negotiate a “short sale” with a third party (“Third-Party Buyer”) on reasonable terms acceptable to Buyer, in Buyer’s discretion reasonably exercised. Failure to negotiate satisfactory short sale terms within 120 days of the Effective Date (as defined below) shall cause this agreement to be null and void at the option of Seller or Buyer and all deposits will be returned. Buyer’s obligations under this Agreement shall be contingent on the Buyer, Third-Party Buyer or Third-Party Buyer’s Lender obtaining an appraisal of the Property satisfactory to Buyer, Third-Party Buyer and Buyer’s Lender showing the value of the Property to be equal to or greater than the Purchase Price.

1. Buyer negotiating a “short sale” of the Property with the existing leinholder(s) that will allow Buyer to pay no more than XXXX total for the Property. Seller acknowledges that it will receive none of the proceeds from the sale of this Property other than the Earnest Money Deposit described herein.

Seller and Buyer agree that Buyer, at its sole option, shall have the right to sell or otherwise assign its interest in this contract to a third party.

So what do you guys think? Is this a listing agreement or a sales contract?