Rehabbing & House Flipping
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Updated almost 14 years ago,
Can the Previous Agent Demand a Commission In This Case?
I'm working on a Wholesaling deal. I had a property under contract through my own LLC that I found through mailing to expired listings. I did a bid sale this past weekend and one buyer really wanted the house turned out to have submitted an offer back in September while it was listed, but the offer and the slightly higher counteroffer were rejected by the seller and they did not pursue it and the agent disappeared. Fast forward to this past weekend. So she and her family found out about my bid sale through Craigslist and they came and saw the house and wanted to put in a bid. Turned out it was the only bid and it was lower than my hoped for amount. I put on my realtor hat and reminded her that she may be liable to pay her former agent (who only ever showed her one house and lives 2 hours away) a commission if she ended up buying this house. She remained very interested in the house so I advised her to check any contracts she might have signed and to seek legal advice.
I know I probably might lose this buyer because I warned her of the risks (shut up Lily!) but I really hate to have this deal fall apart at the last minute. Better deal with it now than later. She called me back wanting to talk more. At this point we're not talking price any more, we are just trying to make sure it will work should she decide to buy. She asked her agent for a copy of the former paperwork and it did not include an exclusive buyer agency agreement. She's going through the paperwork with her lawyer to make sure. I checked with my broker and she said if the house listing expired and is sold to an investor who then resold the property to this buyer, there is no contractual basis for the previous agent to claim a commission. I want to know, what do you all think about this situation and how would you proceed.
It's funny how the more I talked about how she probably could not buy the house, the more she wants it! :D I should try this reverse psychology thing on all my sales!