Expert: liznarr - 3/14/2008

Question
I have had my home listed with Realtor A for almost 2 years.  The listing ended and I re-listed with another company, Realtor B.  I now have buyers ready to sign up that actually were shown the home by Realtor A.  Our contract with Realtor A says that if, after the contract ends and within 180 days we sell to anyone that A showed the house to and she gave to us in writing after listing ended (Realtor A sent me an e-mail with buyers name) then we pay Realtor A's fee.  It also says that if we sign a valid listing contract with a new realtor that we do not have to pay Realtor A's fee.  When Realtor A sent me the e-mail she told me to list those potential buyers as "exceptions" on my new realty contract so that A could get the fee if those people purchased.  My guess is that A hasn't read A's own contract, or am I way off base in figuring that I only need to pay Realtor B's fee and Realtor B is not obligated to pay any amount to Realtor A either?

Answer
Hi Jean,

Not having read your two different listing Contracts and knowing all the facts in your situation, and based solely on information you supplied, I am making the following comments:  

As you pointed out, most MLS listing contracts state that if a property is RELISTED with another agency after the expiration of a previous listing, then the new listing contract prevails.  Any accepted offer would then be paid a commission at closing under the terms of the new listing contract.

YOUR obligation to pay a commission to a real estate company is covered by the listing agreement you signed.  As long as you only have one valid listing agreement in effect at the time of a sale (and assuming that you did NOT list any exceptions for Realtor “A” in your current listing agreement with Realtor “B”), you would only owe the commission to Realtor “B” as covered in Realtor “B’s” listing agreement.

A complicating factor FOR THE REALTORS could possibly come into play in your situation under the rule of Procuring Cause if Realtor “B” now writes the offer for the buyers that Realtor “A” showed your property to if … Realtor “A” has continued to stay in touch with and work these same potential buyers and has not abandoned these buyers.

Procuring Cause is a complicated issue with each situation standing on its own facts, and many different factors can come into play.  Also, if Buyer Agency agreements were signed by these buyers with different Realtors covering the same property for the same or overlapping periods of time, additional facts could come into play.  Again, Buyer Agency agreements and also Procuring Cause issues would be Realtor issues, and not yours.

For Realtor “B” to avoid any issues with Realtor “A,” Realtor “B” should investigate all the facts to make sure he/she has complied with proper procedures and did not interfere with any possible Agency Law issues.

Good luck to you, and write again if you have additional questions.

Regards,
Elizabeth