I have listed my property for 3 months with my agent, and it has not sold or got any offers. The contract period is for 4 months, but I have decided I cannot sell right now and would like to rent it out to this nice family. My agent is claiming I cannot do this because of the contract, but it's not like I am selling it with another agent, I just want to take it off the market and rent it to this family. Does the law really say that I cannot cancel the contract? Please cite your sources, thanks.
2006-08-21 04:30:52 · 11 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
Go to your contract you signed with your agent. See what the penalties are and review your options. More than likely, the best thing to do is wait for your contract to be over (since you have so little time left) Then you can tell your agent you know longer wish to extend your contract and rent your house to the nice family. If you forcefully breach your contract he can do a lot of damage and black list you to other realtors. And the only way to get out of your current contract is if you both wish to terminate it. Now, if by some miracle, he does get you an offer, but you no longer wish to sell, just make up a reason why you don't want to sale. Just make sure it doesn't interfere with any of the fair housing act laws. Which state you can't refuse to sale on the basis of sex, race or age discriminations. Ask for more money, or don't comly with their request. My best advise id to wat it out. Usually those contracts you sign are pretty iron clad. After all, they have to protect themselves too.
2006-08-21 04:45:40 · answer #1 · answered by Evelyn R 2 · 1⤊ 0⤋
Just go ahead and rent it out. It's almost impossible to sell a property with an existing lease except as an invesement and only a very small proportion of single gamily homes are purchased that way. Just let the agent know that the property is now subject to an existing lease and leave it at that if he's being a pr*ck about pulling it off the market.
I've pulled homes off the market a couple of times. The only issue at hand was that if I sold it within 6 months to anyone who the agent had showed it to previously they agent was entitled to their commission. That's only fair.
Conversely you can counter any offer that he brings you with something so off-the-wall that no seller in their right mind would be likely to accept it.
All of that said, read your contract carefully. Every agency agreement I ever signed gave me the right to pull the property off the market. If you don't have a full price, all cash offer already on the table you really can't be compelled to sell the property. I'd also highly recommend that you file a complaint with the agent's broker. Most brokers don't want bad will like that!
2006-08-21 12:25:29 · answer #2 · answered by Bostonian In MO 7 · 1⤊ 0⤋
1) Read the contract, but if he used the standard CAR form, no.
2) You may be able to rent to the family while keeping it on the market, but it is conceivable that the agent could then make a case that you sabotaged the listing. Not good business, but that doesn't stop them from doing it.
3) Assuming the agent doesn't sue (bad business and a hard case to win), there really is no reason why you can't rent the property out while it's still on the market. Because the lease is still binding, you may do yourself out of any possibility of selling, even at the dropping prices of the current market, because prospective buyers probably don't want those tenants. This is the reason the agent may have a case against you. Take your contract to a lawyer for specific advice, of course.
The issue is basically that they have a contract for four months, of which only three have passed. You need to honor that contract, but that does not necessarily mean you cannot rent it out in the meantime (unless your contract stipulates against it, of course!)
2006-08-21 12:12:50 · answer #3 · answered by Searchlight Crusade 5 · 0⤊ 0⤋
Unfortunatly a contract is a contract. It does not matter if you are not sellingto another agent. Im not sure what they can do but im fairly certain that they can assess a penalty forbreaking the contract. Cotract law is a very large and cumberson part oflaw in general. At this point your best bet would be to A) read your contract and find out the penalty for early termination. If its not to bad then pay it. B) Rent the place out and hope nothing happens. Its not like they can sell the place out from under you. C) Negotiate with the agent and see what you can do. D) Talk to a Real estate attorney. Many Lawyers have free 1st time consultations
2006-08-21 11:43:48 · answer #4 · answered by riommar73 3 · 0⤊ 1⤋
A reasonable real estate qualifying broker will mutually cancell the contract, assuming of course that they have not spent a substantial amount of money in marketing your property without success. However even if they hold you to the contract you do not have to sell when they bring you an offer that meets the specific terms that you were originally willing to accept. You are only required in such a case to pay the commission. The chances of an offer coming in, in today's market, that specifically meets all your criteria without contingencies is very slim. Wait out the month.
2006-08-21 12:23:02 · answer #5 · answered by newmexicorealestateforms 6 · 0⤊ 0⤋
READ YOUR CONTRACT!
In Florida, the typical listing agreement includes a clause that the seller is required to inform the broker if they lease or take another mortgage on a property subject to a listing agreement.
While there is a requirement to inform, the broker does not have to consent to the rental.
In addition, there may be a proceedure to withdraw the listing in your agreement as well. In Florida, it is a conditional termination that prevents the sale of the home to any previously identified prospects without paying a commission for a set protection period.
You may also wish to speak to the broker, it is not typically considered to be good business to bind clients to agreements that are not serving their needs.
2006-08-22 01:10:37 · answer #6 · answered by HMMMMMM 3 · 0⤊ 0⤋
He's right, you can't cancel the contract. It has to be recinded by both parties.
If he's just an agent and not a broker, talk to his broker and explain the situation. If you're in a tough market with declining sales (San Diego metro has been a touch market lately) the broker might understand and agree to cancel the contract.
2006-08-21 11:38:04 · answer #7 · answered by Anonymous · 0⤊ 0⤋
You should be able to go to his broker and explain your situation. If he isnt willing to do it, then tell him you want to raise your price by 100,000.00 he will have to do that, that will stop all calls and he will get frustrated. Ask for a conditional withdrawl, it will say that you cant sell it through another broker for the remainder of your contract with him, and maybe even a bit longer. Be fair to your realtor though. He has probably done quite a bit of work for you and isnt gonna get paid a dime. Dont go behind his back and sell it. We as agents need to protect ourselves also. His broker should be able to help!
2006-08-21 12:29:05 · answer #8 · answered by Anonymous · 0⤊ 1⤋
Not many people know but since you and the buyer did not sign the papers with the escrow there are not much you can do. So if the buyer decides not to go through the deal- you can not do much. When the papers are signed with the escrow the deal is done.
My friend was a seller and she did change her mind even there were earnest money and contract signed but before it went to escrow she changed her mind and was told by the escrow she is OK until the documents are signed with the escrow.No one had sued her-not the RE agent nor the buyer.
2006-08-21 12:15:57 · answer #9 · answered by Isabella789 4 · 0⤊ 2⤋
if it were me, i would just tell him that i decided to take it off of the market for a while and hope that in the future the market gets going again, and not tell him about planning on renting it out.
2006-08-21 11:42:38 · answer #10 · answered by daddysboicub 5 · 0⤊ 0⤋