Basking Ridge Real Estate – Questions and Answers
Submit questions here, I will do my best to answer them here on the blog or via email.
Q. If my house is listed with a realtor and someone calls me directly and I show them the house and they make an offer, do I have to pay the commission?
A. The short answer is Yes. Probably not what you want to hear, but it’s in the listing agreement. Paragraph 2 of the listing agreement used by all brokers listing in the Garden State MLS states the following: “GRANT OF EXCLUSIVE RIGHT TO SELL, LEASE, EXCHANGE OR OTHERWISE TRANSFER AND TO MULTIPLE LIST PROPERTY. In consideration of the Listing Broker listing and endeavoring to find Buyers/Tenants for the Property at the Listing Price, the OWNER, (or their legally authorized representative) grants the Listing Broker the exclusive right to sell, lease, exchange or otherwise transfer the Property, at the Listing Price and on the terms as stated in this Agreement, or upon such other Price and/or terms as may be acceptable to the Owner. The Listing Broker is directed by the Owner to list the Property with the SERVICE and to distribute this listing to Service participants.”
This basically means that the broker is due a commission regardless of who introducest the property to the buyer. It is very likely that the buyer knew of the availability of the property due to your agent’s marketing efforts.
The other pertinent paragraph is number 11. “REFERRING INTERESTED BUYERS TO BROKER/NEGOTIATIONS THROUGH LISTING BROKER. The Owner shall refer to the Listing Broker every prospective Buyer/Tenant who contacts the Owner during the term of this Agreement. The Owner directs that all negotiations for the purchase or lease of the Property shall be conducted through the Listing Broker.”
This really is in your best interest – as a REALTOR® and an unbiased third party, I am less likely to say something that might hurt your negotiation. Seemingly innocent interactions between a seller and a potential buyer can muddy the waters. There are some things that are better left unsaid – I’m not talking about hiding material information, I’m referring to things like where you are moving, why you are moving, when you are moving, etc.
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