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 Dear George: I'm interested in a property that was for sale by owner (FSBO), but now is listed with a REALTOR®. I looked at the property at least three times during the past year and made an offer, which was turned down. When the REALTOR® took the listing, she told the owner that she knew of a possible buyer. The owner asked if it was me, and she said yes. I told the REALTOR® in a subsequent phone call that I had indeed looked at it a few times but never agreed upon a price with the seller.
The price has now been lowered to the point where, according to the owner, he would accept my previous offer. I feel that I should be exempt from paying a commission if I purchase the property. Would I owe a commission?
Answer: Your motivations for asking this question are understandable, but how you would feel if someone tried to cheat you out of income you derived from your business? It is entirely possible that this REALTOR®'s efforts have directly resulted in the house's new, reasonable price.
However, the answer to your question rests within the listing agreement the owner signed with the REALTOR®'s firm. Usually, the listings are under "exclusive right to sell" agreements, but it could be an "exclusive agency agreement." If it's an "exclusive right to sell" agreement, a fee is usually owed and payable to the listing firm upon the completion of the transaction. If it's an "exclusive agency" agreement, specific exceptions are detailed in that agreement where a real estate commission is not due. Nonetheless, that does not appear to be the case in the circumstances you’ve described.
More important, unless the listing agreement states otherwise, the seller is contractually obligated to pay any commissions or other fees. Either way, the Residential Real Estate Listing Agreeement - Exclusive Right To Sell form states, in Section 13C, that the seller will "not negotiate with any prospective buyer who may contact seller directly, but refer all prospective buyers to broker." It appears that you might be the cause of the seller violating the contractual terms of his listing agreement.
Dear George: If a buyer requests in a written addendum expensive improvements, repairs, or additional money off, can I cancel my contract with him and sell to someone else?
Answer: No, you cannot use a buyer's attempt to amend or otherwise change an existing contract as an excuse to cancel it. The existing contract is still binding.
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| Dear George: My sister made and offer on a property and paid for a home inspection, which included an inspection of the home's foundation by a structural engineer. She backed out of the contract because of problems the engineering found with the foundation. The seller didn't believe any of work was necessary and suggested that my sister have another engineer, chosen by the seller, inspect the house; this engineer said the foundation was OK. My sister closed on the house. A week after she moved in, my sister hired a company to lay wood floors. After pulling up the old floor, the company supervisor said he couldn't continue with the the job until the foundation was repaired, stating that the house had some of the worst foundation problems he had ever seen.
I think this seller made an arrangement with his recommended engineer to certify that the foundation was OK. Does my sister have any legal recourse?
Answer: Your sister can hire an attorney and sue the everyone involved (seller, inspector, real estate agents, etc.), or, if a REALTOR® was involved in the transaction, she can first call the Texas Association of REALTORS® 800/873-9155 and ask to speak with someone regarding the Ombudsman Program. This program is designed to handle situations where a consumer has a problem with a particular member of the REALTOR® association. A specially trained volunteer, the "ombudsman," will listen to your sister's story and contact the REALTOR® with whom the sister dealt.
The purpose is not to settle the dispute, but to make sure that the consumer, your sister, is fully aware of all the options available to her; these options include filing a complaint against the REALTOR® with the Texas Real Estate Commission or suing the REALTOR®. It also assures that the REALTOR® knows that your sister knows the options available to her.
Dear George: I found out that my landlord refinanced our home six months ago fraudulently when his mortgage documents were sent to my home. I called the loan officer to alert him that my landlord did not live at the home. He said it was none of my business and if I didn’t mind my own business my landlord would get into a lot of trouble. My landlord got the loan at a lower interest rate by telling the mortgage company that our home was not a rental home. I’m concerned that his fraudulent loan approval will come back to haunt our future attempt to purchase the home. Is it true that once a loan closes everything about the loan closes as well?
Answer: You stated that the mortgage documents were sent to your home. Were they sealed in an envelope, postage paid, and addressed to your landlord? If they were, why did you open mail that was not addressed to you? You might have violated federal regulations regarding postal deliveries. As for your landlord's alleged fraud, a homeowner like your landlord is not prohibited from renegotiating a loan. If it were simply an extension and renewal of an existing loan, there may have been no fraud at all. Also, the lender may be within his rights under the deed of trust to foreclose on the property. If that were to happen, your lease agreement could be rendered null and void, and you might be forced to move. It seems that that there are many variables and unknowns in the scenario you outlined. Consult an attorney with experience regarding this type of situation before you take any action you might regret.
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