Full question:
I signed an 'Exclusive' contract with a realtor as a buyer. My friend then offered to sell me her home. I told my realtor, he did not refer to the contract or any subsequent commission that would still be owed, so I went ahead with the purchase on my own. Absolutely no help from the realtor, no other realtor was involved. The sale was between two friends. Now that realtor wants a commission. He is threatening to take legal action. Am I tied to the contract? How do I get out of this contract without having to pay the commission?
- Category: Real Property
- Subcategory: Sales
- Date:
- State: Utah
Answer:
A real estate broker acts as an agent in transactions involving property sales, purchases, rentals, and financing. The specific terms of your brokerage agreement dictate the services provided and the broker's right to compensation. In some cases, state law may require certain disclosures.
An exclusive buyer's agency agreement typically states that the buyer's agent will receive a commission. If you fail to pay, you may still be liable for that commission. An exclusive agency listing means the seller appoints one broker as their exclusive agent, but the seller can sell the property themselves without owing a commission if they find a buyer independently.
Whether you owe a commission depends on your contract's terms. Some buyer's agency agreements include a 'release clause' allowing you to terminate the agreement without future obligations. If your agreement specifies that you owe a commission regardless of how you find a home, you may be responsible for payment. However, if it states that no commission is due if you find a home on your own, you might not have to pay.
To understand your obligations, review your contract carefully. If you're unsure, consider consulting a legal professional for advice tailored to your situation. Users can search for state-specific legal templates at .
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.