Expert: Jessica Bryan - 12/18/2009

Question
We moved and needed to sell our home.  I enlisted the help of a realtor.  We signed a 6 months contract.  She assured me that she would not bring any clients that were not pre qualified.  A couple called her about the house.  She showed the house to them even though they were not pre approved.  They had had some financial difficulties and were not able to get a loan. I agreed to rent the home to them for a year.  After the year they were supposed to obtain financing.  The year is up and they still cannot get financing, but rent is caught up (after some difficult months.)  We are considering a land contract and at the end of two years they would have to obtain financing.  The realtor has done some unethical things and both the rentors and I are pretty frustrated with her.  I was told that it would be up to my discretion whether or not I paid her.  Is this true?  Or can I pay her a reduced rate?  

Answer
Hello Ann;
I am sorry that you are unhappy with your Realtor.  The answer to your question depends upon what agreement you have made with her regarding compensation.  If you have a signed contract with her that states that she will get compensated for a sale no matter how long it takes, or if there is something that has wording that requires payment, then you will probably need to consult an attorney to veer away from your contractual agreement.  Even though the agent may have done some unethical things, she is still the procuring cause of your potential sale.  Unless you can sue for breach of contract or for damages, then you probably still owe compensation.  One would have to review the contract to know for sure and I suggest that you consult an attorney if you have questions.

Best wishes,
Jessica Bryan