How to get out of a listing agreement in Ontario
October 28, 2007 6:49 PM Subscribe
Can someone who knows about Ontario real estate listing agreements help a homebuying n00b?
posted by liquado to Home & Garden (4 answers total)
Here's the sitch:
A friend owns a house that I've been taking care of since he moved away. He was trying to sell privately, but his price was too high, and has finally dropped the price to the point where it's in line with the current sketchy market. In the meantime, however, my wife and I have fallen in love with the house -- and, it's now in a price range that we can afford.
The problem is this: he has now listed it with an agent. I know that as soon as I mention to him that we're interested, he'll be wanting to get out of the listing agreement and sell privately, because we had actually not-too-seriously inquired about the house before. Bluntly, he'd rather sell for a lower price to a friend, and not have to pay the realtor commission. And, he would rather someone he knows -- and who knows how much work went into fixing it up -- get the house.
His current exclusive listing agreement runs out on Feb. 15, and has a 90 day holding period. My question is, does the agreement become null if he takes it off the market before the 15th of Feb? If so, how long until he can sell it privately? (We never spoke with the agent about the house, so there is no problem with commission on that front) We're trying to figure out what dates we're looking at to finish the deal if we decide to go ahead. If he attempts to cancel the agreement for nonperformance (there are a few things that weren't done that would likely justify this), what timeframes are we looking at?
Any help at all would be most graciously appreciated. We're not trying to hoodwink the realtor necessarily, but don't want to see him get a commission for selling to someone who knew about -- and was interested in -- the house long before he ever listed it.