Expert: Dick Dennis - 9/5/2006

Question
We signed a six month realtor contract that terminates in November.  While our realtor has shown us some homes the home that we want to buy is currently being renovated and is not yet listed.  The builder has said he would sell it to us without listing the house if we make him an offer.  My question is in regards to the obligations of the contract with our realtor - can we cancel the contract, if we buy the house without a listing agent are we still obligated to pay her a commision even if she had nothing to do with the sale?  Any information you could provide would be most appreciated.  Thank you.

Answer
You merely have to read the contract you signed, Jason. You will notice it does not even mention what happens if you buy a house without the Realtor you are signed up with to sell your house. In otherwords, you have no obligation to your listing agent if you should buy a house elsewhere.

But to cancel your existing listing is another story. If your existing agent has worked trying to get your house sold and has not sluffed off, it will be very difficult to cancel your listing. YOu would have to have a very valid reason, most likely the agent not exhibiting due diligence. If you need to sell your house in order to buy the other one, then I recommend considering lowering your price.

I do wish you well.

Dick Dennis             dixiedee13@aol.com