Illegal listing agreements, paying cash for a home
Answers to real estate questions as appearing
in the Houston Chronicle
By george stephens, CRB, AND Charles J. "Chuck" Jacobus, JD
Dear George: Can a real estate agent who is licensed by the Texas Real Estate Commission but is not a member of the Texas Association of REALTORS® use a Texas Association of REALTORS® Residential Real Estate Listing Agreement - Exclusive Right To Sell? Does this situation invalidate the agreement? I'd like to get out of my 12-month listing agreement and just found out that she's not a REALTOR®, even though she uses this agreement. My agent has done little to sell my property; she won't list the property in the MLS, cannot be reached by phone, and doesn't return messages left by prospective buyers for a week or more.
Answer: Although your agent is in violation of federal copyright laws by misusing the Texas Association of REALTORS® Residential Real Estate Listing Agreement - Exclusive Right To Sell, such a listing contract is likely still legally binding because you signed what you perceived to be a legally binding document. Confirm this with your attorney. However, this agent seems to be not representing your best interests in this transaction, which could enable you to terminate your agreement. Your relationship with this agent requires continuing consent of the principal and the agent. This agency 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 agency agreement. Again, consult your attorney to detemine whether you can be held liable under the terms of your listing agreement.
Dear George: I'm looking to buy a home and may be able to pay cash. What are the pros and cons of paying cash versus getting a mortgage loan?
Answer: As a general rule, you will pay more closing costs when you obtain a mortgage loan. Most of the increased costs, however, will be tax deductible. Therefore, using a mortgage lender may have advantages as to net cost in and of itself depending upon your total tax picture. Consult with a tax professional to get advice based on your situation.
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.
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.
