Expert: Karyn Foley - 4/2/2007

Question
My husband and I have our house on the market. But now we are thinking about staying here. We want to know if there is anything that we have to pay the realtor is we take it off the market? The reason is because we have not lived here for 2 years and the capital gains tax is too much.

Answer
Dear Jessica:
 I am surprised that your realtor did not suggest you check with your tax advisor since you have not lived there for two year.  That should have been explained to y0u before you put yourself out by putting your home on the market, and before the agent spent time and money putting your house on the market.  However, it is a good thing you know now that it would have been a mistake; it could have put you in a bad position had you found out later after agreeing to a buyer's contract.
 Explain to your agent that you are taking your home off the market and why.  I don't have a copy of your contract, but it seems unprofessional if there w0ould be any monies due under the circumstances.  You can request an unconditional cancelation,but you may be asked to sign instead a conditional cancelation that states that you would owe a commission if you sold or rented y0ur home to anyone during a period of time that will be stated.  
 Since you do not have a buyer, you cannot be forced to sell.  If you are pushed into a bad position, you can get nasty and refuse to let anyone in, but that is not advisable because it could be problematic. If your agent is unreasonable, demand to speak to the office or company's owner or manager.  If all else fails, for a small amount of money you should see a real estate attorney who will be your advocate and write the appropriate letter and you will find the problem will probably go away.
 Keep in mind, your agent should have been smart and professional and pick up on your situation even it you did not mention it.  A good agent gets what is known as a property profile and it indicates when you purchased the house.  You were owed her due diligence and expertise.  Two years go by quickly, and she could have had a grateful client in two years time.  
 Good luck to you in this process; I feel certain it will work out well and to your satisfaction.  Don't give in as it will be too costly and not necessary.  Let me know what happens and if I can answer any more questions.  Karyn Foley