As a California Broker I can help you there, so this may not apply in your state... What you need to do is have the Broker "Cancel" the listing.. It is simple for them to do but most Brokers are very protective of their listings. Most will "withdraw" the listing which doesn’t eliminate a commission earned if the seller sells you the property.
That doesn’t mean that you cannot buy the house, it just means that the Broker has a right to collect a commission assuming they used an Exclusive Authorization and Right to Sell from the seller.
There are basically 3 types of listing agreements two of which give the seller the ability to sell themselves without obligation to pay a commission... One doesn’t
Here they are...
Open ended Listing agreement;
An open-ended listing allows an investor to sell a property themselves. However, he, or she, could also hire a single or multiple agents to list and sell the property. Note: the MLS only allows a single entry by one agent.
Whichever buyer the seller accepts the offer from, that buyer’s agent is the only agent the seller is obligated to pay the commission to. The key advantage is that the seller is typically only paying half of the “standard” listing fee plus the flat fee, which is around $500.00. (The $500.00 is typically due at MLS listing input.) The reason is because the seller is unrepresented. Only the buyer has representation. However, if the seller finds the buyer themselves, the seller will not owe anybody a commission.
Exclusive agency Listing agreement:
An exclusive agency listing is somewhat similar to an open listing with one major difference. That difference is if the broker, hired by the seller, sells the property to an able buyer and the seller accepts the offer from said buyer, then the broker will represent the seller as well.
Thus, the seller is obligated to pay the entire commission, both to the selling and listing sides.
Under this agreement, the broker may also cooperate with other agents and if the seller accepts an offer from a buyer represented by another agent then the seller is still obligated to pay both sides commissions.
Exclusive authorization and right to sell
An exclusive authorization and right-to-sell listing is the most commonly utilized listing agreement. It gives the broker the exclusive right to earn a commission by representing the owner and bringing a buyer, either through another brokerage or directly. The owner pays both the listing and selling broker fees. The owner cannot sell the property himself, or herself, without paying a commission, unless an exception is noted in the contract.
As you can see, an open ended listing agreement, the type flat fee or “pay for service” companies use, doesn’t afford the seller representation and because of this the selling agent inherently understands that they are going to have to do “More Work” then normal. Their broker is going to require them to produce the same disclosures that the listings agent would typically produce without compensation.
Michael Quarles
