Expert: Dick Dennis - 5/29/2010

Question
Heres the deal my parents are having a real hard time selling their house and they have lowered there price forty thousand dollars on the assessed value well they want to  take it off the market  and rent the home now. Are they subject to any legal action for just breaking the contract out right! Or if this realtor could go back on them if they sold if privately? hope you can give me some insight thanks for your time

Answer
Something like this question is probably the most common I receive, Aaron. And it is because the client does not bother to read the listing contract COMPLETELY. The contract no doubt says something like this: "This agreement is valid for x-amount of months. Should the client cancel and sell the property with or without the help of the agent, the stated commission is due."

However, it would be a good idea for your parents to sit down with the agent and talk about it. If the price has been dropped by $40,000, then something is wrong with the property. It just doesn't make sense (assuming the property has been advertised properly) that interest in the property didn't pick up after that price drop.

If your parents are elder, something that is common among older people (I know, I am one of them) is that their furnishings are dated and does not help to sell the property. In those cases, it is best if the house was sold vacant. Or, it might be a better idea to have the agent to find a good STAGER. A stager is a professional who decorates a house to the point that the property does sell. Sometimes the stager will bring in rented furniture and sparkle up the house.

Also, make sure the house is painted and freshened up. How's the landscaping? Do people even want to bother entering the house when they see it from outside? These are things that should be gone over with the listing agent.

The agreement has a clause in it that says something like:  ". . . after expiration or cancellation of this agreement, within (30 days, 60 days, 180 days, etc.) if the owner sells the house to someone who had previously inspected the house . . . within those amount of days after cancellation or end of the listing, then a commission is due." BUT, the agent MUST have given the owner a list of the people who have inspected the property. Fortunately for those who have this in mind, this is very rarely done by the agents.

Or, your parents can ask to talk to the manager/broker in the office to ask for an unconditional cancellation in consideration of what has not happened so far. I do wish you well.

Dick Dennis
dixiedee13@aol.com