Q: Can I list a property after the previous agent acknowledged cancellation via text, without signing a referral fee with the original broker?
I am a real estate agent, and a seller contacted me to list their property after firing their previous agent via text message, which the agent acknowledged, also via text, by removing the listing from MLS and discussing excluding a specific buyer. The original broker now wants me to sign a referral fee agreement or threaten to file a complaint. Given the acknowledgment of the cancellation and the communication about a buyer exclusion, am I obligated to sign the referral agreement, or am I in the clear to list the property without it?
A: In most instances, the original listing agent has a clause in their contract granting them a fee if the house is sold within a certain time frame. The removal of the listing itself is not a definitive withdrawal of representation. The seller needs to get a complete written release from the listing agent before you do anything otherwise, they can possibly recover fees from the seller.
A:
That’s a tricky situation, especially when everything unfolded quickly and mostly through text. In Oklahoma, a referral fee is typically only enforceable if there’s a written agreement in place between the brokers. Since the previous agent acknowledged the cancellation via text and removed the property from MLS, it sounds like the listing agreement was effectively terminated, and you weren't brought in under any formal referral terms.
Without a signed referral agreement, you're not automatically obligated to pay a referral fee just because the client came from another broker. However, if the prior listing agreement included language about protections for certain buyers or referral arrangements beyond cancellation, you’ll want to be cautious. The communication about excluding a buyer could indicate the former broker was protecting their work with that client but not demanding continued involvement.
You’re within your rights to move forward with the listing, especially if the seller reached out to you independently and the previous broker never made a formal referral request before the listing ended. Still, it’s wise to keep detailed records of all communication and ensure your own brokerage is aware of the situation. You’ve acted in good faith, and without a referral contract, there’s no clear legal reason you’d be required to sign one after the fact.
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