James, I was a Realtor in MO until 2010 and am now in the Kansas City, Kansas area but only as a KS Realtor. I will cut/paste your questions and answer them to the best of my ability:
-Yes, as a sellers agent, I owe him the commission since it's under contract+only few weeks left until closing.
Yes, you owe him if he finds a ready and willing buyer who pays the terms you've agreed to in your listing contract as long as that buyer made an offer you've agreed to accept and doesn't fail to close. If you fail to close because you back out, a court would be likely to decide that you owe the full commission.
-Just so I know for the future, can I back out anytime for any reason if I decide not to sell my property for any reason?
No. Once you're in an actual contract with a buyer, you must meet the terms you've agreed to just as the buyer must do. You can only back out for the reasons allowed in your contract, such as if the buyer doesn't obtain loan commitment on time or wants repairs that you aren't willing to make and they decide to cancel.
-Yes, I don't want to work with this guy anymore. Problem is one of the properties he showed me, I'm very interested. He also told me to make an offer for it, which I did but didn't get a response from the seller. So if I were to buy that property he showed me and also helped me making an written offer, can I hire someone else from different broker?
[i]If you signed a Buyer's Agency agreement with the agent, read it carefully. If you're using the forms provided by the Kansas City Regional Association of Realtors (KCRAR), the part that will interest you starts at line 95. However, what you have described leads me to believe that the form may not be getting used properly or that you're not understanding it correctly.
The idea of "agency" is the biggest cause of lawsuits in real estate transaction. I am not an attorney, and only an attorney can provide legal advice, so please understand that I am not offering legal advice and I do not represent your best interests.
In Missouri, agents represent the broker. The "salesperson" license you saw on the Division's website confirms that the agent is not working as a broker. Technically speaking, only brokers can take responsibility for the activities involved in a transaction. A broker is ultimately responsible for the acts of agents that he or she allows to do work on the broker's behalf.
This is very important if the seller of the property you're interested in is also working with the same broker. That broker has to decide how to represent both of you. Missouri allows something called "dual agency" - meaning that the broker has fiduciary duties to both you and to the seller, something that other states (like Kansas) treat as an inherent conflict of interest. If you make an offer on that seller's property, the broker may treat the transaction as a dual agency sale. Alternately, the broker could use what is called "designated agency." This means that your agent would be responsible for those fiduciary duties to you, and the seller's agent would be responsible for the fiduciary to the seller. The broker's third option is to handle the transaction as a "transaction brokerage" in which the broker is a neutral party and must not share any confidential information of any type, such as whether you'd pay more for the property or if the seller would take less.
When you want to renegotiate your brokerage arrangement, you'll want to be aware of the legalities involved, and again, only an attorney can advise you as far as your direct circumstances. Generally speaking, many brokers do not want hassles on these matters and will work with someone to find a satisfactory solution. Solutions I have seen in the past included assigning a different agent to work with the client, taking over for the agent, and releasing the client from the contract in writing.
One point that has been raised in lawsuits over commissions is whether an agent or broker has maintained continual communications with a client. An attorney could advise you on whether you have grounds for terminating your contract on this basis, too, if the broker is unwilling to do so without involving an attorney. [/i]
-One more thing, the property I'm interested in? The sellers agent works for same broker as mine!!
See above.
What are my options here? Best thing to do?
[i] As I think I've probably droned to death, I cannot advise a course of action. I hope that I have provided enough info that you can determine your own options and possible courses of action.
