Legal Question in Real Estate Law in California
We currently have our home for sale in California. We obtained a contract within a week of the original listing (Aug 1, 2014). The buyer cancelled the original contract three days before we were to close. The house went back on the market. We were very upset with our realtor of the handling of the first contract. We had asked to cancel the contract at the first of September. The broker refused to cancel the contract. Now we are 90 days into a 180 day contract. The realtor/broker wants us to reduce the price by $50,000 for a quick sale. We are willing to ride the contract out and re-list (with a different agent) in February (a month after our contract expires). Does the original agent/broker have any legal recourse if we decide not to lower the price?
3 Answers from Attorneys
When you refer to contract, I am assuming that you mean a listing agreement with your own broker, and not the purchase and sale contract with a buyer of your home. I suggest consulting with an attorney and having them review the listing agreement to fully advise you.
Mr. Anthony Roach, the attorney who answered this first is correct: consult an attorney and get them to look over the listing agreement. I was personally in this situation even before becoming an attorney. You need an attorney. Three years of law school and those listing agreements still befuddle me; you would think they would make them a bit more savvy. P.S. I was a real estate broker before going back and getting the J.D. in law. Get an attorney. Kudos to Mr. Roach for advising you to do so; I concur.
In general, the real estate broker is simply an advisor and does not have the power to make you lower your price. The standard CAR form sets a price at which the property is to be listed. I obviously do not know what contract form you signed, but it would be quite unusual for the broker to control the price at which you are willing to sell. Tell him you want to keep the price as listed. He has to follow your instructions He is you "agent".
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