Legal Question in Real Estate Law in California
Real Estate Commission
I Signed 2 listing agreement with a designated R E agent on the same property. One was an agreement to rent and the other an agreement to sell. Both agreements started on 9/25/08, and should have terminated on 12/24/08. in the interim,There was a sale in conjuction with another agent which, fell through, because either agent could not handle the buyer. Although I had listed with the designated agent before, nothing has ever happenned in the way of a transaction. I have terminated the designated agent in mid febrary 2009, and he has returned my keys. I reccently received a letter from the designated agent, demanding that a comission be paid, also indicating that his listing is still valid. In checking over his papers I noticed that he had pencilled in an ending date of 12/24/09 on the selling agreement only and is now demanding a commission because he has learned that I have a potential buyer. With the end date of the agreement, designated agent will have tide up the property for 1 year and 3 months as incompetent as he is.
According to the California Association of Realtors, there is no way out. but to pay two commission, which I cannot afford. In conclusion: what can I do to get rid of that unscrupulous agent?
3 Answers from Attorneys
Re: Real Estate Commission
Hire an attorney to review the listing agreements and find a way out. If the agent changed the contract after you signed it, that is fraud and is the basis for terminating the agreement without penalty. With respect to a commission being due, they are only entitled to a commission if the buyer was ready to close escrow, and you cancelled the sale for a reason not allowed in the purchase contract. I'd suggest that you would be best served to have an attorney review all of the documentation and help you determine what your rights, if any are. Also, you can file a complaint with the California Department of Real Estate and the three associations of Realtors (National, California and the local board the Realtors belong to) on the Salesperson you were working with AND their broker.
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Re: Real Estate Commission
"Get rid of ... agent?" Your options are to negotiate a resolution or sue/be sued. The reality is that, anybody can sue anybody for anything; however, winning is a different story. You can ignore him and his demands, and wait to see if you get sued. You can invoke the Dept of Real Estate complaint dept. You can hire an attorney. Etc.
From your description, it sounds like you entered into parallel listing agreements for sale, or at least took an offer from a different agent without involving your first listing agent. If so, that was improper, and risky. Since the sale fell through without any fault on your part, the agent that made the sale is generally not entitled to a commission, nor is the other agent. As to the year+ listing agreement, that is easily argued as a 'typo' error. The industry standard listing is generally for 3 months or so, it would be rare to go 15 months.
Feel free to contact me if serious about getting experienced legal help in this.
Re: Real Estate Commission
Your version of the termination dates is somewhat unlikely to be believed for the following reasons: (1) use of a pencil is a perfectly acceptable way to make, or fill in blanks on, a written contract. (2) logically, an agent undertaking to find a tenant and also to sell the same property would want a longer time horizon on the selling listing than the rental listing, so the property could be sold free and clear of the tenant's rights at the end of a lease, typically one year.
Having seen nobody's proof, and hearing only a little of your argument, my hunch tells me you are more than 50% likely to be the loser here.
In addition to asking the California Association of Realtors about your rights - it is a trade organization for the benefit of the real-estate industry - you should ask a consumer-friendly public agency, namely, the California Department of Real Estate. Also, use the DRE's Web site to look up this agent's history to see if he has a disciplinary history.
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