I have bought and sold homes "by owner" in the past and it has worked well. This time my new employer offered to pay the realtor commission, so I got a good recommendation and hired a realtor who I think is decent. We signed an "exclusive right to sell" listing agreement for a 6 month term. However, personal circumstances are making me reconsider. He has done nothing to invalidate our agreement at this point. But, I do remember from a business law class that a contract has to have "consideration" to be legally binding. What is the consideration in a listing agreement? No cash changes hands until the sale takes place, and "future consideration" is non-binding (I think). I have reviewed the agreement several times looking for what consideration exists to make it legally binding. I can't see it, but I am an accountant, not a lawyer or R/E professional - any thoughts?
2007-07-16 10:13:28 · 4 answers · asked by brwzx 1 in Business & Finance ➔ Renting & Real Estate
The consideration that makes this agreement legally binding is the realtor's effort to sell your home and your promise to pay the realtor when your home is sold.
2007-07-16 10:42:28 · answer #1 · answered by Anonymous · 0⤊ 0⤋
A listing agreement is a legally binding contract for services. Realtor's do a lot behind the scenes in an effort to sell your property. Some of the efforts being made may not be visible to you.
2007-07-16 10:19:33 · answer #2 · answered by mazziatplay 5 · 0⤊ 0⤋
Your listing agreement is legally binding for its duration. The consideration is the services which the listing agency is providing and has provided. Consideration need not be in the form of cash.
If you attempt to legally challenge the listing contract, you are guaranteed to lose.
2007-07-16 10:18:49 · answer #3 · answered by acermill 7 · 0⤊ 0⤋
It is true a lot goes on that most don't know However if your that unhappy with the agent you should let him or her know and ask to cancel the listing at this time or put the clause in that you can sell the home your self with no fees paid to them (has a name ) so in short it is binding but you have the right to cancel and make sure you get a copy of the canceling form and if you must go over the agent head call the broker. good luck
2007-07-16 10:33:56 · answer #4 · answered by L 2 · 0⤊ 0⤋