QUESTION

What is sellers obligation to agent/broker after signing listing agreement and property disclosure? No price or listing date was printed.

Asked on Apr 30th, 2023 on Real Estate - Texas
More details to this question:
Signed broker docs 1 week ago. Listing date and price were not specified in agreement as I am still in cost-benefit analysis stages. Close relative has since offered to buy property at a slightly later date, 4-6 months from now. This familial, private arrangement is preferred, avoiding the broker commissions, in order to facilitate a more amicable financial agreement. Can I simply notify broker I wish to not move forward?
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1 ANSWER

Commercial Litigation Attorney serving Frisco, TX at Reid Dennis & Frick, PC
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In part, this depends on whether the listing agreement is "open" or "exclusive."  In the current real estate market, "open" listing agreements are quite common.  Under such an agreement, the agent/broker only earns a commission if and when they procure a seller.  In the past, "exclusive" listing agreements were more common.  Under such an agreement, the agent/broker earns a commission if a contract to buy the property is signed during the agreed exclusive listing period.Note that a listing agreement must be signed by both parties, not just by the seller.  You might ask whether the broker has signed the listing agreement yet and, if so, will the broker send you a fully signed copy.  Without a listing date and price, I would expect the answer to be "No" because they are waiting on you to provide the listing price.  That would signal that there is no meeting of the minds on a material term of the listing agreement, i.e. price.  This is a reasonable conclusion because the broker might not be willing to pay the MLS fee to list the property if your proposed price is too high.  If it plays out that way, you can most likely rescind your acceptance of the listing agreement you signed, but which has not yet been signed by the broker, and tell him you do not wish to proceed with listing the property at this time.
Answered on May 11th, 2023 at 1:22 PM

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