Terminating Contracts and Earnest-Money Disputes – Texas REALTORS®-2021十大正规彩票app

My client received a full-price offer on a property I listed for him after signing a Residential Real Estate Listing Agreement Exclusive Right to Sell (TAR 1101), but he now states he is no longer interested in selling his property and refuses to accept the offer. I believe that I still deserve my commission because I fulfilled my obligation under the listing agreement by bringing him a suitable buyer. Am I still entitled to receive my commission?

Yes. Paragraph 5 of the TAR Listing Agreement explains that a seller will pay the broker either a percentage of the sales price or a set fee when the compensation is earned and payable. This paragraph also lists the circumstances when compensation is deemed “earned” and “payable.”

In this situation, you could argue that the compensation was earned when you procured a buyer who was ready, willing, and able to buy the property at the listing price, and the compensation was payable when the seller refused to sell the property after your compensation had been earned. Alternatively, you could argue that the seller’s refusal to sell the property was a breach of the TAR Listing Agreement, and that compensation was earned and payable as a result of that breach.

If negotiations with your client fail and your client is not willing to pay your compensation, you may need to contact an attorney.

My seller’s contract didn’t close by the date specified in the contract. He and the buyer blame each other, and both want the earnest money. The contract hasn’t been terminated yet, but my client wants to put the property back on the market. What should I do?

Have your client talk to an attorney about the legal liabilities of proceeding with a sale without the termination of the original contract. Remember, there are two ways to formally terminate a contract:

1. The parties can agree to terminate and sign a document like Release of Earnest Money(TAR 1904) that releases both parties from further obligations under the contract.

2. A judge can order a contract termination.

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