Mortgage Articles
I can't believe I signed that
Be careful when you sign a realtor's contract

I can’t believe I signed that!

Or be careful when you sign a realtor’s contract...

Andrea decided to relocate and sell her house, choosing to sell it through a realtor who had been recommended to her by her neighbor. The realtor previewed her house (walked through and took notes), the front and the backyard. The realtor sat with Andrea and piloted her through the many forms that she needed to read and sign. She discussed with Andrea the various magazine ads and newspaper ads that would be placed for her house, even some Internet ads. After a couple of hours, the “sign-up” was finally over. Andrea was very relieved that she was not going to attempt to sell the house by herself and finally had a realtor.

A few days later, while in conversation with a co-worker, the subject of her house for sale came up. The co-worker was very interested in Andrea’s house. She told Andrea that she had just received a large settlement from a lawsuit and would like to see the house. Andrea was very excited, and the next day her co-worker came to see the house and fell in love with it. Andrea told the co-worker that she had just listed the property with a realtor, but that she felt it wouldn’t be a problem since the realtor hadn’t even had a chance to show it to any potential buyers or advertise it.

The following day, Andrea called the realtor, and to her surprise found out that she was still required to pay the FULL 6% commission. She had signed a contract with the real estate agency, entitling them to the commission regardless of who sold the house. If Andrea had thought that there might be a chance that she would end up selling the house herself, she should have put in the contract “only 3% commission if seller sells the property.” I know Andrea was probably very happy to sell her house so quickly, but by not including this clause, it cost her thousands and thousands of dollars in commission to her realtor.


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