June 15, 2009
Dear George: On the morning that I was supposed to close on the purchase of a home, the seller died. It's been several weeks, and I still haven't closed on the property. I no longer want the house. Am I still bound to this contract?
Answer: The contract is still binding on both the buyer and the seller; in this case, whoever inherits the seller's property is bound by the contract. There is a delay, but it is unavoidable under the circumstances.
Dear George: My agent will not allow me to terminate my agreement to list my house with her. However, she will allow me to withdraw my listing until the agreement expires. Does this mean that if I withdraw my listing, I will not owe the real estate brokerage any commission or penalties? The contract I signed did not spell out any penalties for withdrawing the listing.
Answer: Yes. If the listing agreement you signed does not have any penalties or charges for the withdrawal, you shouldn't owe anything. Ask your agent to send you something in writing that states you will not be charged any fees, commissions, or other amounts for withdrawing your listing until it expires.
You may have another choice. The relationship between you and your agent requires continuing consent of both parties. This relationship may be terminated at any time by either party; however, an early termination without cause may expose the terminating party to liability under the agreement. The key to this is "without cause." You haven't stated your reason for wanting out of your agreement, but a real estate attorney can tell you whether your reason qualifies as "just cause" and would enable you to terminate the agreement early without penalty.
E-mail a question to ask George & Chuck or fax it to 713-978-6684. The answers to questions in this column do not contain legal advice. If you wish to obtain legal advice, you should consult your own attorney.
