Selling house after contract with real estate agent is up?

Question

We are buying a house from my fiances uncle. But he doesn't want to put it through his real estate agent as it's going to be a private sale. His contract with the real estate agent is up on July 28th, and we were planning on buying it shortly after that. But he was reading his contract tonight and it said that he is not allowed to sell the house within 6 months of his contract ending. Does this mean he can't sell it privately to us? We never put in a off with the real estate agent or anything, and she doesn't know that we are even interested in it. Is there anyway we can get around this without going through the real estate agent?

Answer 1

sharon is correct... re-read contract...

Contracts that Realtors/Realestate Agents make you sign are exclusive contracts, meaning you are tied up BUT if you want to get around this... you can... with one condition...

1st option...

Wait until it expires, throw the property into a trust... have your uncle carry the paper (owner financing)... now, put yourself as the benificary interest on the property... set up a triple net lease between your uncle and yourself... you are required to pay all PITI (principle, interest, taxes, insurance)...

2nd option...

quick claim the property to you and refinance under you name 6 months later... just keep in mind the market is going down every where so... 6 months later you might see a 20% decline  in value and your LTV (loan to value) wont work for the bank

one last thing... just make sure the property is a deal... you really have to wonder why the property didnt sell with the agent... I would be thinking, was the listing price wayyyy over priced (typically most people will offer 8-10% under in this market)... just remember you will see a huge decline in value... best time to buy would be after nov...

Answer 2

Reread the agreement.  I haven't come across a listing agreement that says a seller cannot sell the house, either privately or through another agent, after the listing agreement EXPIRES.  Many listing agreements do, however, say that the broker is due their commission if the house is sold to a buyer afterwards who was procured by the broker during the listing period, ie: broker showed the house to buyer A during listing period but buyer A didn't make an offer and buy the house until after the listing expired.  If you have questions, consult a real estate attorney who can help you through this issue, and can also draw up the paperwork and close the transaction for you.

Answer 3

It would be best to honor the terms of the listing agreement or your uncle could find himself in breach of contract. Wait 6 months and purchase the home.

Answer 4

No.

Because unscrupulous people do this to Realtors, that clause is written in to prevent people like yourself from trying to circumvent the Realtor.  This Realtor has spent money marketing this property, and if you wanted to buy it, maybe they would take a reduced commission on the sale.

Do you want to work for free?  No, didn't think so. Realtors only get paid when they successfully transact real estate, and you are trying to rip this person off.   Shame on you.

Answer 5

You should talk to an attorney before doing anything. Based on the laws of the state you're in, what you and your uncle are conspiring to do could be considered fraud...and if you're unfamiliar with the term, it's not a good thing.

The bottom line is that if your uncle didn't want to pay a commission, then he shouldn't have hired a real estate agent. If you want the house, buy it...but pay the people who deserve to get paid for their services.

Answer 6

Tell him to read it carefully. Those clauses are for clients that the realtor himself brought to see the house. They don't usually apply to the owner finding a buyer of his own.

John W Realtor in California.

Answer 7

Read the contract again.  Usually the time period applies to anyone to whom the home was shown or who found out it was for sale by ad or sign.  Your uncle can contact the broker and ask for a signed release naming you as the buyer.  In other words, he won't be in violation if they will agree to this.

Otherwise, you will have to wait out the six month period but you can certainly rent the house from him before that time.