Seller listed home for sale with Broker. Broker procures an offer via a cooperating Broker who represents Buyer exclusively.
After several counteroffers, Seller accepts Buyer’s offer for purchase. It is discovered during the first week of escrow that Sellers have Notice of Default filed against their property and that they have not paid the monthly payment for 6 months (breach of paragraph #7 of Residential Listing Agreement for not disclosing that loan was in deficiency).
While in escrow, Seller refuses to complete required termite repairs. Thus delaying close of escrow, everything else is on schedule. Sellers non-performance of a contractual obligation causes Buyer to cancel escrow.
1) Can Broker sue for Entire commission Amount?
2) Can Realtor sue for actual damages for time/moneys spent marketing property?
3) Can Buyer sue for actual damages for lost money for inspections/appraisal/etc?
You say the seller refused to complete "required termite repairs" – this is where it gets sticky for me. If the contract stated the house had to pass a home inspection, the pest problem was discovered during the inspection and the sellers wouldn’t fix it, deal is off.
How was this repair a contractual obligation? Did they agree in the contract that they knew of structural damage and would fix it?
More info please.
March 5th, 2010 at 6:23 pm
Is the seller still under the original listing agreement with the broker or has that lapsed or been terminated? Seems to me that the ability of the broker / realtor to be able to sue would hinge on whether or not they’re still performing under the RLA and therefore still have the opportunity to profit from the sale of the property. If the agreement is still valid then the broker/realtor shouldn’t be able to sue because the listing agreement is not affected buy the buyer in question’s decision not to purchase the property.
References :
March 5th, 2010 at 7:06 pm
You say the seller refused to complete "required termite repairs" – this is where it gets sticky for me. If the contract stated the house had to pass a home inspection, the pest problem was discovered during the inspection and the sellers wouldn’t fix it, deal is off.
How was this repair a contractual obligation? Did they agree in the contract that they knew of structural damage and would fix it?
More info please.
References :
Oregon Realtor
March 5th, 2010 at 7:30 pm
You could sue, but where will that get you? You will get the reputation of the Realtor who sues when a deal falls apart. We all lose deals, its frustrating, but happens. Maybe you could ask the seller to reimburse you for you costs of marketing the property. Think about it, what good is suing going to do?They obviously have no money since they do not pay their mortgage, and they are going to give you a bad reputation to everyone they know.
RE Agent,
Remax
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