Legal Question in Real Estate Law in California

Re: Question about Listing contract to sell home

I can't be 100% sure without reading both listing agreements as well as the exact language of the expiring exception, but my offhand reaction is yes, you are probably potentially liable to both brokers. I know it seems unfair, but the law allows people to sign bad contracts as well as good (with a few exceptions).

I would suggest four somewhat overlapping possibilities:

(1) Have the broker you would prefer to honor with a commission go over the other one's contract and give you an opinion as to whether there is a double-commission problem, and if yes, what to do about it. If he says no, get a written indemnity.

(2) Have a local real-estate lawyer look at all the agreements for possible loopholes. Then get an indemnity from someone.

(3) Explain the problem to both brokers and ask them to agree on a solution, such as splitting a single commission. If they agree, get it in writing.

(4) Explain to everyone that you must regretfully decline the offer because of the brokers' inability to compromise on the commission problem, then hope the rising market results in an even better offer.

In preparing my answer to your question, I looked at a couple of cases and a real estate practice manual. I was also involved in one deal where the issue arose and the brokers negotiated a commission split. This doesn't make me an authority on the issue. Maybe you'll get a solution from another LawGuru attorney who is. Right now I would advise proceeding as though you would be probably liable for both commissions.

Re: Question about Listing contract to sell home

If I understand your question right, the first listing agreement is still good and the second one will be expired upon receipt of the the offer at your asking price. Well, it looks like though the second listing agreement is expired, the buyer arose from that agreement and that relationship. Thus, I think you are likely liable for the commission on the second listing agreement because you intend to receive performance. You may not be liable on the first listing agreement though it is still valid if it is not exclusive. I would need to see all contracts and listing agreements to be sure. You may contact me.

Re: Question about Listing contract to sell home

Specific dates and times are very important. Had they denied your counter in writing? Did you have cutoff date on counter. All info needed to analyze.