Expert: Dick Dennis - 9/14/2008

Question
QUESTION: Hello:

My wife and I are getting a divorce.  The house we live in is in her name only (she bought it before we got married).  She signed a contract with a realtor to sell the house.  

Now, two months into the contract, we would like to pull the house from the market and refinance it in my name.  Basically, I want to keep the house (and she wants me to).

Can we back out of the contract, or must she sell it to anyone who is willing to meet her listing price until the contract expires in January.

Thank you very much for this service.

ANSWER: Technically, Jeff, if your wife conveys the house to you, she owes a commission to the Realtor. Any kind of conveyance obligates her to pay a commission.

You have two ways of handling this: Go to your agent's office manager and tell him/her what you want to do. Chances are he will have you sign an agreement that if you DO NOT do as you aspire, then your wife will owe the commission. As long as you do get title to the house and you do get a new mortgage, there should be no problem. However, if you decide to sell the house yourself, the Realtor manager may ask you to sign a new listing before you refi it.

Otherwise, just wait until January. The Realtor and the manager will know that you are not going to cooperate unless you get an "as-listed" offer to purchase. Wish you well.

Dick Dennis     dick@dickdennis.com

---------- FOLLOW-UP ----------

QUESTION: Just a quick follow up:

1. Would it be a mistake to go to the agent first, before going to the office manager?  We seem to have a pretty good relationship with her.

and

2. Waiting till January (when the contract expires) may not be a big deal. However, what if someone wants to buy the house for the listed price before then?  I know that is not very likely, but I like to have all my bases covered.

Thanks again.

Answer
By all means. Go to your Realtor first to see if she can help you. Chances she will. I got the impression you didn't have a good relationship with her.

If someone wants to pay the list price, why not sell it to them? Why would you hesitate? I wish you well.

Dick Dennis