Friendsville, TN asked in Real Estate Law for Tennessee

Q: My siblings and I (5 of us) currently are 1/5th owners in real estate left to us by our deceased parents.

We are under a contract with a Realtor. The property, has two homes with land. The first home was sold to the renters who occupied the house. The realtor collected 4% for helping with this transaction.

As it turns out, one of the owners (brother) wants to buy out the remaining 4 siblings. Do we have to pay the realtor the 6% she is charging?...Can we not handle this ourselves? Do we, by law, have to honor this contract since an owner is buying out the other 4? Is there a way to get out of this contract?

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2 Lawyer Answers
Leonard Robert Grefseng
Leonard Robert Grefseng
Answered
  • Columbia, TN
  • Licensed in Tennessee

A: This can't be answered without a close review of your listing agreement. Some of these contracts are so broadly worded that the realtor can claimed they "earned" the commission if ANY sale took place during the listing period ( and some even add an additional 60/90/120 day period after the listing expires). If all the owners signed a listing, you are bound by it, its a contract and they probably have a provision that requires you to pay the realtors' attorney fees if you breach the contract. There's no easy way to "get out" of it. You need to get a copy of the listing and see if there are any exceptions ("loopholes") which would exclude a family transaction.

Other than waiting for the listing ( and any penalty period) to expire, you might try offering the agent a nominal sum to release all of you from the listing. That's a pretty easy way for them to earn a few bucks without much effort ( but for sure, do explain what you plans are- just tell them you changed your mind about selling and have decided to keep it for a while.

Leonard Robert Grefseng
Leonard Robert Grefseng
Answered
  • Columbia, TN
  • Licensed in Tennessee

A: CORRECTION TO PRIOR ANSWER- typo DO NOT advise realtor of you plans. Just say you changed your mind about selling to any third party and have decided to keep it for a while ( all of which is true).

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