Fee for termination of listing?

Question

I listed my property for sale and when I was signing the listing agreement the agent said their may be a small fee if I pull it off market,I asked her how much,she said she didn't know but it shouldn't be much. To find out she knew they charge $500.00 and lied to me saying she didn't know.

There is nothing in the listing agreement about a termination fee, she said if I didn't pay the $500.00 they would not release it and they could charge 3% or 6% if they wanted.

My question is,shouldn't I have been informed of all this prior to me signing the agreement and the agent not being deceptive of the fact?

I ask her about it not being in the listing agreement and she said it didn't have to be and it just is what it is.

Answer 1

I certainly hope you have not paid this fee. If this charge is not in the listing contract, their office policy for sellers, or other documents you may have signed you certainly don't pay.
Rules for real estate brokerage operation may vary from state to state, but not that much.
Call your state's Commission on Real Estate or the Dept. of Commerce, Call your local board of Realtors. This company may not belong to your local board but if they do file a complaint with them.
Be sure to have all documents you signed handy. This sounds like fraud to me. Read on please.
Now, when your home is listed and along comes Mr. buyer with out representation from a Realtor, and they want to buy your home and not include the agent... NO WAY is that going to happen if the listing agreement you signed is an Exclusive Right to Sell Contract. In other words, if while your home is listed you decide to sell your home on your own without paying the Brokerage their commission, you cannot. You legally owe that Brokerage the amount or percentage that you agreed to pay of the selling price.
Also in that listing contract there is a clause that says; if you decide to sell your home after the listing contract expires, to a person that viewed your home while it was listed, you still owe the commission to the listing broker. If this happens before 180 days has passed from the date the listing contract was cancelled, expired, etc. If that broker can prove that your buyer viewed your home during the listing period.
The time period may vary from this 180 days we have here in Ohio.
We have been in the real estate business for 37 years and have never charged anyone a dime for cancelling a listing. Unless, they are trying to cheat us out of an earned commission. In that event, we still didn't charge for cancelling a listing we just collected our earned commission which is only fair and reasonable.
Best wishes to you.

Answer 2

Who is charging you a fee? LIsting should cost you nothing, including deciding not to sell the home.

I would report them to your states real estate board, especially the lack of disclosure, she was legally obligated to tell you.

They are sort of right about the 3% (no way all 6) if you pulld your listing from them BEFORE your contract expired and then actually sold the house. They would legally be entitled to a commission, even if not the selling agent.

They can't get the commission if the house is not sold, they are entitled to nothing in that case.

Personally I would not do business with this agent or her brokerage. You can pull the house off the market and wait out the contract and try to find someone with decent ethics in the mean time.

Answer 3

While your agent was not exactly upfront (or just unknowledgeable), you have but two choices here. You can pay the $500.00, or you can leave the property listed until expiry of the listing contract.

As far as charging you 3% or 6% of something, I suppose they could do that as well, but only if you terminate the agreement. Why not just let it listed and let it expire a timely death on its own ?

Answer 4

You do have the right to turn down all offers that come in until the listing expires. If she/he wants a frustrating few months, and it doesn't hurt you. Just be patient, and relist with someone better. This doesn't sound like your "agent" has your best interest in mind. Again, if the time runs out for the listing, you don't owe anything.

Answer 5

Like some of the answers it seems strange. Agents are licensed. First I would call his/her broker. If the broker says you owe it have them prove where. If they cant, call the licensing division with the state they are licensed through.

My suggestion call the state regulatory commission put them on hold and then 3-way your real esate agent in. Then you have the real estate agent with the state on the phone at the same time. You might be amazed at how quickly that 500 dollars goes to zero.

Answer 6

They would be entitled to charge you what they have payed out of pocket to market your property. Flyers, ads, etc.
You should also consider speaking directly to the broker.
Best business practices dictate they would let you off the hook if they have no cost invested in your listing. But then again not everyone operates on Best Business Practices.

Answer 7

You should have been informed, and this is deceptive. How do you know she didn't put that $500 straight into her pocket?
Talk to a real estate attorney, and if she was using deceptive practices then she should get her license pulled. Don't let her get away with it, cause if she did it to you, she will do it to others as well.

Answer 8

It depends.

What state are you in?
What kind of contract you signed?
Does the contract indicate reimbursement for expenses?

If you can send me this information I may be able to assist you. If not I suggest you inquire with a Broker not agent from another real estate company.

Good Luck
Chris C.
Real Estate Broker/Lender

Answer 9

who's charging you a cost? itemizing ought to value you no longer something, alongside with figuring out to no longer sell the domicile. i might checklist them to your states real aspects board, quite the shortcoming of disclosure, she became legally obligated to tell you. they're form of precise with reference to the three% (no way all 6) in case you pulld your itemizing from them formerly your contract expired and then easily offered the domicile. they might legally be entitled to a cost, whether no longer the advertising agent. they are in a position to't get the cost if the domicile isn't offered, they're entitled to no longer something if so. individually i would not do business enterprise with this agent or her brokerage. you are able to pull the domicile off the industry and wait out the contract and attempt to hit upon somebody with respectable ethics in the advise time.