Legal Question in Consumer Law in Texas

A title contract was opened on some property listed via broker to sell, but the deal flopped after several (4) attempts. A lady contacted me concerning the property after passing by several times, leaving a note in a family member mailbox that know who it belongs to. She gave an offer and wanted to purchase the property straight out cash, but preferred to not go through a realtor/broker. It was agreed but had to go through the Title Company of my choice. She agreed. A contract was signed and submitted to the title company to open title. Being aware of he listing questions were asked about how it will be handled with the broker. Will they contact her? Or can they update the information in the file to include her, even though she was not the reason the property is being sold. This was through our own methods. The title company said no, we cannot contact the broker/realtor due to client confidentiality, that I would have to contact her so she can be aware of what's going on. I left the contract and said she would be in contact with them along with the buyer. About 20 mins later, I received an email stating there is a problem. He had been notified by the Title Company that a contract has been opened on the property, and demanded an explanation, and compensation for listing the property. I did not even have a chance to call him due to dropping the contract off before proceeding on my way to work. This has made me look deceptive and to have not included him in the deal. My question...does the Title Company have the right to do this? What can be done about this? Am I wrong? Please help...

Asked on 9/17/15, 12:09 pm

1 Answer from Attorneys

Adam Kielich The Kielich Law Firm

I don't know enough details about the relationship between you, the title company and the broker to determine whether the title company had the authority to communicate about the contract with your broker. The various service agreements involved in these transactions will determine the answers to your questions.

Your agreement with the broker may have provisions that entitles the broker to commission even if you sell the house on your own or through other means. That is something else addressed in the service agreements involved here.

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Answered on 9/17/15, 1:02 pm

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