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My listing agreement ended. Why do I have to pay my former broker a commission?

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Red Sold rider on a For Sale sign with a family in the background.

08/11/2015 | Author: TAR Legal Staff

My TAR residential listing agreement ended July 1. A buyer who looked at my house in June submitted an offer on July 20 that I accepted. Today, my former listing broker called and said I owe her a commission on this sale—something about a protection period and this buyer being on a list she gave me. Do I have to pay the broker?

Check Paragraph 5E of your expired listing agreement—TAR Residential Real Estate Listing Agreement, Exclusive Right to Sell (TAR 1101)—for details about your protection period. You do not have to pay this commission if any of these situations exist:

  • The protection period ended before you reached an agreement to sell the property to the buyer.
  • At the time the sale was negotiated, you had the property listed with another broker who is a member of the Texas Association of REALTORS® and you are obligated to pay the new broker a fee for the sale.
  • Your former broker didn’t deliver the list of names within 10 days of the listing’s expiration.
  • The buyer’s name is not on the list provided by your former broker.

Otherwise, you are legally obligated to pay the commission unless your former broker breached your listing agreement in some way before it expired. If you think that may be the case, you should seek legal counsel as to whether a breach may have occurred.

Have a question about buying, selling, or leasing property in Texas? Ask us. Not all submitted questions will be answered.

Categories: Legal, Sellers
Tags: legal, contracts, consumers, sellers

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The material provided here is for informational purposes only and is not intended and should not be considered as legal advice for your particular matter. You should contact your attorney to obtain advice with respect to any particular issue or problem. Applicability of the legal principles discussed in this material may differ substantially in individual situations.

While the Texas Association of REALTORS® has used reasonable efforts in collecting and preparing materials included here, due to the rapidly changing nature of the real estate marketplace and the law, and our reliance on information provided by outside sources, the Texas Association of REALTORS® makes no representation, warranty, or guarantee of the accuracy or reliability of any information provided here or elsewhere on texasrealestate.com. Any legal or other information found here, on texasrealestate.com, or at other sites to which we link, should be verified before it is relied upon.

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