Investor · idaho falls, ID · Member since 2008 · 83 posts · 78 votes
I have a family member who listed a property and the agent put in additional wording on the listing contract (it has an additional paragraph in our state for additional terms). As the listing was coming up to expire we said lets have you buy it and the agent said he was starting that then went radio silence. So we set up a meeting with the agent and broker and they completely backtracked and said they do not do this type of thing, picked apart the wording, and the broker said that we are interpreting things differently than they do, and they had no interest in buying it, while the agent was looking at the floor and did not say anything. We are considering arbitration, and the local real estate board offers that for a small set fee, but are we going to get a fair shake there because these guys might be friends with the broker? It is a $192K deal. Thoughts?
What is the end goal for you? For them to buy it? Or to release the listing?
have them buy it! The market went south, and the price they agreed on is good now. The listing just expired anyway.
Did you ever have an executed purchase contract? If no, it seems like an uphill battle
That is the point. The wrote in the listing agreement that if after 90 days and some price drops the seller could have the broker buy it for a set price. The seller wants them to buy it now as they said they would. The agent said he would get the ball rolling and we have waited for a purchase agreement to be drawn up now that it is realevant and the broker, just thursday said that is first he has heard of anything the agent said, and had not even seen the listing agreement before. My family member only listed with this guy because he promised they would buy the property if it did not sell and wrote some langauge to that affect on the listing agreement. Thoughts now?
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
2y
@Brian Stutzman So this was a “guaranteed buy out by the listing broker, in the listing contract, for a set price if the property didn’t sell by a certain date”? If so, yes, you will get a fair shake from the local board…one of their main functions is discipline and oversight over their member brokers.
Woodbridge, VA · Member since 2017 · 122 posts · 44 votes
2y
It might be worth getting advice from an attorney. Check with the local bar, most offer a reduced fee half hour consultation.
So I doubt that the board can force the broker to purchase the property, there might be disciplinary issue for the agent/broker especially if he claims he hadn’t seen the contract.
I would be angling to see whether this is claimable againsg the E&O policy, depending on how you design the issue. Or perhaps professional negligence, if the broker stands to lose his license-depending on the size, and having heard from an attorney, you might get a sizeable compensation because even courts, that is, if you trouble yourself with the litigation costs and get a favourable ruling, are likely to award a monetary sum. Of course, I am not an attorney but there are so many if's and but's and the legal verbiage is critical.
May be the broker is right, or May be not, that you are misconstruing the contract. Another argument is that had it not been for this misrepresentation (again verbiage is critical), you wouldn’t have entered into a listing agreement. I think this might be your far better argument. Again, if the sum is large enough and you age upset enough then get proper informed legal advice.
It might be worth getting advice from an attorney. Check with the local bar, most offer a reduced fee half hour consultation.
So I doubt that the board can force the broker to purchase the property, there might be disciplinary issue for the agent/broker especially if he claims he hadn’t seen the contract.
I would be angling to see whether this is claimable againsg the E&O policy, depending on how you design the issue. Or perhaps professional negligence, if the broker stands to lose his license-depending on the size, and having heard from an attorney, you might get a sizeable compensation because even courts, that is, if you trouble yourself with the litigation costs and get a favourable ruling, are likely to award a monetary sum. Of course, I am not an attorney but there are so many if's and but's and the legal verbiage is critical.
May be the broker is right, or May be not, that you are misconstruing the contract. Another argument is that had it not been for this misrepresentation (again verbiage is critical), you wouldn’t have entered into a listing agreement. I think this might be your far better argument. Again, if the sum is large enough and you age upset enough then get proper informed legal advice.
Thank you for this. Frankly we have gotten some good advice locally which I can not post here but we had some thinking right and some wrong. Best advice as you said: talk to someone who knows the law because it can be different than just a contract dispute in some states.