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Selling agent's standard length of contract

Discussion in 'The Buying & Selling Process' started by ZOMG, 23rd Dec, 2015.

  1. ZOMG

    ZOMG Well-Known Member

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    I'm asking this on behalf of a friend, basically they're in a situation where they've agreed to sell their home with a RE agency back in September. They told the agent at the end of October they did not want to sell the place.

    The question is, they've changed their mind and want to sell again but have a private buyer that enquired. Would my friend be liable to pay the original RE agent selling fees if the place is sold in private? I asked if they signed a contract with the agent but they claim no written contract was signed, is there a standard period of time that agent's can claim a % of the commission?
     
  2. LifesGood

    LifesGood Home Building & Development Consultant Business Member

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    There may be a "cooling off" period after the listing agreement ends where the agent would still be owed a commission however, this is going to be situation specific and would have formed part of an exclusive listing agreement. It's best your friend double checks the agreement they had. Different states may also have different laws around this.
     
  3. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

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    If the private buyer enquired of the REA during the time of the agency period (normally 90 days but can be anything agreed upon), then the REA will have a claim for commission.

    No signed agency agreement (contract) = no entitlement for a claim for commission.
     
  4. Scott No Mates

    Scott No Mates Well-Known Member

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    90 days is typical. When was it pulled off the market? Dod the agent pull all advertising? / was it still being actively marketed? Did the agent show the property to this 'private' buyer?
     
  5. ZOMG

    ZOMG Well-Known Member

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    Hey thanks everyone for the responses, I'll pass them on.

    As far as I know, it was pulled off the market in late October so was only on sale for just under 2 months. And yes I think the agent showed the property to the potential buyer first.
     
  6. Marg4000

    Marg4000 Well-Known Member

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    If the agent introduced the buyer to the property then he/she is probably entitled to the commission even though the agreement has expired.
    Marg
     
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  7. LifesGood

    LifesGood Home Building & Development Consultant Business Member

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    However if there was never an agreement in the first place then the agent is entitled to nothing. I would seriously investigate that issue though. No agent in their right mind would "list" a property without a signed agreement.
     
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  8. Big Will

    Big Will Well-Known Member

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    They also wouldn't advertise or introduce a buyer without an agreement.