Early termination of listing agreements, easement lawsuits ...

ask george & chuck

Early termination of listing agreements, easement lawsuits ...

 

Dear George: We were selling our home, but my husband's transfer fell through. Now, we don't want to sell. However, we have a contract with a real estate company, and someone wants to buy our home. The contract with the real estate company runs out in a week, and we haven't signed any closing papers. Are we allowed to change our minds without getting sued?

Answer: Let's assume that by "contract with a real estate company" you mean a listing agreement, and that when you say you "haven't signed any closing papers" you mean you haven't accepted an offer to purchase your home by signing the contract with the interested buyer. If these assumptions are correct, you can change your mind and decide not to sell your home; a real estate brokerage cannot force you to sell your home.

Read your listing agreement to see if you might incur some charges for an early termination without cause; this fee could cover expenses incurred by the real estate company such as outlays for advertising. Since you haven't signed any contract to sell your house to the interested buyer, the only folks who would have motivation to sue you would be the real estate brokerage. Allowing a listing agreement to expire without selling your home is not justification for a lawsuit.

Dear George: Who would pay the attorney's fees in a suit to establish an easement? If I sue to have an easement declared that I believeis already established under Texas law and win, would the party I am suing have to pay only his attorney's fees or his and my attorney's fees? Would the loser pay court costs too?

Answer: There are no statutory provisions regarding suits of this type. A judge might award them in extreme cases, but it is highly unlikely. The side initiating the lawsuit typically pleads for them, but the other side always has a convincing story, too. Both parties pay their own attorneys.

Dear George: Is my 85-year-old mother being taken advantage of? Her REALTOR® delayed entering my mom's home in the MLS for about a week and brought an eager potential buyer immediately, who failed to make an offer. The REALTOR® then made a full-price offer herself but included my mother's new appliances as part of the deal; they were not included in the original listing. The REALTOR® also had told my mother that the inspection report, which is less than a year old, was sufficient for any buyer. Now that she is the buyer, however, the REALTOR® insisted on new inspection and is nitpicking over minor repairs that my mother is expected to pay for.

My mom told the REALTOR® when she listed the house that she just wanted what she paid for it. It was listed for about $10,000 above that. By the time my mom pays the agreed upon commission, hands over the new appliances, pays for the trivial repairs at the REALTOR®'s estimated costs, and pays closing costs, Mom will not break even. I think the REALTOR® held back the home on purpose and always intended to purchase it, going so far as having an alleged eager buyer who never made an offer. It looks to me that the REALTOR® manipulated my mom and and used her emotions to secure this property instead of representing Mom's interests. How can a listing agent also be a buyer in the same transaction?

Answer: From what you have stated in your e-mail, it appears that the REALTOR® may not be representing the best interests of your mother. One way to straighten this out without involving attorneys is for you or your mother to 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 REALTOR®. A specially trained volunteer REALTOR®, the ombudsman, will listen to your story and will contact the REALTOR® with whom you are having the problem. The purpose is not to settle a dispute, but to make sure that you, the consumer, are fully aware of all the options available to you including without limitation, filing a complaint against the REALTOR® with the Texas Real Estate Commission or filing a lawsuit against her. It also assures that the REALTOR® understands that you know all the options available to you.

  E-mail your question to "Ask George & Chuck" or fax it to 281/596-7591. 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.  

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George Stephens, CRB, is the broker of ERA Stephens Properties. He is licensed as a mortgage broker in Texas and a real estate broker in Texas, Georgia, and Massachusetts.

Charles J. Jacobus, JD, is board certified by the Texas Board of Legal Specialization in Residential and Commercial Real Estate Law, and the author of Texas Real Estate Law and Texas Real Estate, both published by Thomson Publishing. He also teaches at Champions School of Real Estate and Houston Community College, and is an adjunct professor at the University of Houston Law Center.

George and Chuck are co-authors of Texas Real Estate Brokerage and Law of Agency published by Thomson Publishing.