Legal Question in Real Estate Law in New York
Cancelling a Property sale
We contracted with a real estate agency to sell our house. The first people to see the house made a very low bid which we refused. The agent now tells us the bidders have offered the asking price. Due to personal and health reasons (and the fact that we are unable to find a suitable house) we have asked the agent to stop the sale and remove the house from the market. I might point out that we have Not signed a sale contract. Now the agent advises that, since the bidders have offered our asking price, if we want to cancel the sale, we must pay them the full commission. Is this legal? Can we be forced into selling? Thanks so much for your time and advice.
2 Answers from Attorneys
Re: Cancelling a Property sale
NOTE: This communication is not intended as and should not be interpreted as legal advice. Rather, it is intended solely as a general discussion of legal principles. You should not rely on or take action based on this communication without first presenting ALL relevant details to a competent attorney in your jurisdiction and then receiving the attorney's individualized advice for you. By reading the "Response" to your question or comment, you agree that the opinion expressed is not intended to, nor does it, create any attorney-client relationship, nor does it constitute legal advice to any person reviewing such information, nor will it be considered an attorney-client privileged communication. If you do not agree, then stop right here, and do not read any further.
If you have not signed a contract of sale, you cannot be forced to sell your home. However, if your agent delivers a buyer ready, willing and able to purchase your home in accordance with your terms, the agent is entitled to a commission.
After all, that is the contract you signed with him.
I always have my clients amend the listing agreement to make the commisssion payable only as, when and if, title passes.
You should be able to negotiate with your agent, ie: offer him the opportunity for an exclusive listing when you have found another home, or just offer him some money to go away.
Most brokers are reluctant to actually sue except under extreme conditions. It's bad for their image.
Good Luck.
Re: Cancelling a Property sale
The outcome depends on what you signed with the real estate agent. However, if you have advised the broker that you did not want to sell prior to the solicitation of the asking price offer, you probably wouldn't owe the broker anything. You should also look at any contingencies that the buyer is proposing and whether those reflect the buyer's ability to actually close on the property.
Please feel free to contact me if you would like to discuss this further.
Kind regards,
Peter Moulinos
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