Agent asking for 2.5%, is this legal?

Question

Hello- I asked my current agent to terminate our listing agreement. The home has been on the market over 100 days and has not sold and I only received one offer (and the buyer rescinded it the next day). the agent is saying she’ll only agree to terminate it if I agree for her to earn 2.5% commission off the next agent who takes over. Is this legal? Have you ever heard of this? She is also the broker so it’s not like I can go to her manager. What should I do? I am also located in Connecticut.

Theresa Harris · Answer

Read your contract.

Matt Devincenzo · Answer

Based only on the info you provided, sure it's legal...you have a bi-lateral contract which you are uni-laterally asking to cancel. The other party to the contract said they'll agree IF you agree they are due the compensation that was originally planned for in the contract. It takes two to cancel this agreement, or you wait it out like Chris mentioned.

Chris Seveney · Answer

@Simon Obas

What’s your contract say? That is what is important

Typically if you signed a 180 contract you are stuck for another 80 days

Jeremy Galloway · Answer

I'm not sure if the 90 days grace period is required. The listing agreement (state specific) would have the details of the "grace period". It could be 0 days possibly if that is how it was written.

William Broxson · Answer

Im really not sure how they can take 2.5% from the next agent But anything is possible. Maybe call the broker, But likely they just want paid for time and effort so far. Did they pay for staging, professional photos or ads? Maybe tell them you want to see a new marketing plan or sell strategy.

Mason Hickman · Answer

@Simon Obas

Why hasn’t it sold and generated more offers? What’s causing you to cancel with this agent?

Russell Brazil · Answer

Legal?

You have a contract. It expires at some point. If you want to end the contract early, then youll need to negotiate to end the contract early. If not, then wait out til the end of the contract to oay zero.

Erik Estrada · Answer

Hey Simon,

Why is the property not selling? Is it priced appropriately? I know we are in a tough selling market, but the properties that are selling are priced reasonably.

Also, have you considered leveraging your equity instead of selling? Turn it into a rental property instead?

Lynn McGeein · Answer

@Simon Obas if she hasn’t kept up her side of the contract and won’t let you out early without penalty, if she’s her own broker then possibly contact the real estate board where she’s licensed and ask them if you can file a complaint. If she has followed the contract, then read the contract and follow whatever is required to terminate, and you may be stuck until it expires. Interview other agents (you can call them, they can’t initiate until listing expired my area). They may be able to assist.

Eliott Elias · Answer

She earns commission only if the buyer that buys is someone your current realtor has been working. Other than that there's like a 90 day grace period of her getting paid regardless.

Agent asking for 2.5%, is this legal?

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