You Want To Buy A For Sale By Owner (FSBO), But Already Have An Agent. HELP.
Looking for advice. Our military family is moving to Texas very soon. We have hired a realtor (who is also military) we went looking for houses for 3 days, she drove us around two of those days. She really went above and beyond, but did not find a house. Since then we have lost two offers on houses, the market is competitive. We are in crunch time and found a house on military by owner and the seller doesn’t want to use a realtor. We are okay with that (seller is military and in the same field as husband which is a very small community). Problem is we don’t want to screw our realtor over but we signed a contract that she gets % of any home we buy in the area. How to handle situation? Would she be okay with giving a few K cash for her help. Does she legally get the % of selling price no matter what. I’ve searched this sub and have found conflicting answers. Basically I want everyone to walk away happy. Please advise.
Work with your agent to see if they can still represent you in the deal, representation from an agent can still be valuable in situations like this. If they are unwilling to work with agents, if this isn’t an option, it sounds like to have a good relationship and respect your real estate agent — that is awesome. I would sit down with them and explain your situation, you should walk away from the meeting with a clear path forward and definitive answers. If you are still confused, insist on them clarifying or ask to speak with their managing broker for clarification. Breaching a contract could have adverse legal implications — Protect yourself. I would specifically ask them to explain any Holdover Period that you may have agreed to in your contract.
This is how it reads, at present, in the Exclusive Agency Agreement in Colorado:
7.4. Holdover Period. Brokerage Firm’s fee applies to Property contracted for (or leased if § 3.5.2 is checked) during the Term of this Buyer Listing Contract or any extensions and also applies to Property contracted for or leased within
calendar days after the Listing Period expires(Holdover Period) (1) if the Property is one on which Broker negotiated and (2) if Broker submitted its address or other description in writing to Buyer during the Listing Period, (Submitted Property). Provided, however, Buyer Will Will Not (clr) owe the compensation under §§ 7.1, 7.2, 7.3.1 and 7.3.2 as indicated, if a commission is earned by another real estate brokerage firm acting pursuant to an exclusive agreement with Buyer entered into during the Holdover Period, and a Sale or Lease of the Submitted Property is consummated. If no box is checked in this § 7.4, then Buyer does not owe the commission to Brokerage Firm.
[For full context: (https://www.colorado.gov/pacific/dora/division-real-estate-contracts-and-forms) > Real Estate Broker Mandatory Contracts and Forms > Listing Contracts > Exclusive Right to Buy]
This clause is to protect real estate brokerages from getting cut out of the equation from any property that they can be proven to be the prevailing cause to. In plain English — were they the reason you became aware of this property for sale and earn the right to represent you.
I wouldn’t stop with just the holdover period as the contract you signed could have different implications, clauses, and agreements — but this is the one that immediately came to mind from your post.
The sentiment to want everyone to talk away happy is an admirable one, but make sure you are protecting yourself to ensure arn’t putting yourself in legal jeopardy getting there. If you are unable to still work with your agent on this deal, I’m sure they would appreciate knowing how much you liked the experience of working with them and will be a dependable and active referral source for them in the future. If you commit to this and are able to come through, all should be swell after the first referral and all others will be gravy in the boat.
I hope it works out for the best, work with those who earn your trust and always protect yourself.
Source: The opinion of this licensed real estate broker in Denver, CO.
Original question and response sourced from: