My listing agreement ended. Why do I have to pay my former broker a commission?
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.
How was the list delivered to the seller?
The story did not address two items.
Did the broker provide the list within the 10 days?
Can the broker PROVE they delivered the list or is it a he said she said?
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