QUESTION
Am I liable to pay if the agent presents the offer to assume my mortgage before giving me te numbers as to waht it could cost?
Asked on Nov 19th, 2013 on Foreclosures - California
More details to this question:
I met with my realtor prior to signing the listing contract and discussed selling my home via short sale and negotiating the costs into the deal as I have no money to sell the property outright. After having that discussion I agreed to sell and signed the listing contract. The house sold and went to the bank for approval. I found out after almost 3 months after signing the listing contract that I can buy again right after a short sale if I have no late payments but the property has to be 100 miles from where I sell and has to be smaller. That was never told to me by my agent or loan officer until 2 months into the bank reviewing the short sale. I canceled the short sale and asked my agent for info on the buyer assuming my mortgage and what the costs with that would be. The agent sort of took off with that idea saying he would contact the buyer about it and get back to me but I am responsible for commissions and transfer fess etcetera and never gave me an amount. The contract says that if the agent presents a purchase offer no matter if I accept or not I have to pay him 6%. If he presents the offer to assume my mortgage before giving me numbers as to what it could cost, am I liable to pay? or can I be released as things did not go down the way it was discussed prior to listing my home and I have emails that can confirm that. Thanks
1 ANSWER
It is difficult to answer your question without seeing the agreement you signed with your agent. Is your obligation to sell with an assumption of mortgage contingent on bank approval? Has the bank approved the assumption? I doubt that the listing agreement requires you to accept any offer presented regardless of its terms. And even if the agreement does say that, a court would probably void it as being illegal or unconscionable. If you refuse to pay the commission, the agent may sue you. So your questions ultimately might only be able to be answered in court. Most county bar associations have a Lawyer Referral Service that will arrange an appointment at a nominal cost with an attorney specializing in the subject on which you need help, in this case real estate law. I urge you to consult with an attorney as soon as possible. At least then you will understand your options.
Answered on Nov 22nd, 2013 at 6:59 PM