Legal Question in Real Estate Law in California

Re: Real Estate Agreement w/Agent, CA

It really depends on what your listing agreement says. Generally, however, you may be liable to the listing agent for the full commission. You should have an attorney in your area review the listing agreement to determine precisely what the consequences may be.

Re: Real Estate Agreement w/Agent, CA

The statement in a previous answer that you will probably owe a commission is not really accurate.

If you signed the standard C.A.R. listing agreement, you will only owe a commission if you sell the house, or if the broker "procures a buyer" who offers to purchase the property on the price and terms in your listing agreement. (See paragraph 4).

Now just because a broker brings in an offer, does that mean that you have to pay that broker a commission for "procuring a buyer," whether you sell or not? The answer is probably no, simply because Sellers are entitled to reject offers that they don't like. In any offer, there are a myriad of terms that can form the basis of a good faith rejection . . . , price, escrow period, creditworthiness of buyer, inspection periods, etc.

So just because the broker may present you an offer, this does not necessarily mean that the broker has "procured a buyer." You would be well within your rights to reject the offer because of a good faith dissatisfaction with the offer's terms.

If, on the off chance, the broker brings you an all cash, full price offer, with all contingencies removed up front, then you may have a problem finding a valid basis upon which to reject the offer. In such a case, it is possible that the broker will have "procured a buyer" and will be entitled to a commission. Based on my experience, such "perfect" offers are very rare, particularly in today's market. The chances of your broker presenting you with a "perfect" offer during the listing period are very low. So your first option is to just "ride out" the listing period, and reject offers in good faith.

The other, more practical option, is to just ask the broker to cancel the listing agreement. In my experience, a seller's good faith request to cancel a listing agreement is almost always honored by a reputable broker.

Of course, if you're trying to cancel your agreement to sell without paying a commission, the broker will probably refuse to let you out. But if your request is made in good faith, chances are, the broker will agree, in writing, to cancel the listing agreement. Of course, you may be asked to reimburse the broker for any out of pocket expenses incurred in the marketing of your property.

Good luck to you.

Re: Real Estate Agreement w/Agent, CA

I agree with Mr. Hoffman.

The listing agreement is a contract, and its provisions should spell out your duties and obligations. If you don't understand it, see an attorney to review your options and obligations.