Verbal realty agent agreement

[kolob]

State of Utah, Utah County.

To the point. Have a friend who is an realty agent. Stated to agent I was going to sell my own home and had myself set up with escrow company earlier this year because I could not afford a double hit on commission from sale of house meaning from seller agent and buying agent.
My agent friend said let me sell your house for you and then I will just get you into another one. I simply wanted to pay her or some one to just do the paperwork, however I could have done that also easily.
I sent her an email back in April/May basically saying...so your saying you will sell my house without a commission then you will just make your money getting me into another one. She sent an email back stating yes. There were no other specifics stated.

Some History of my agent friend so you will understand that I am not a slime ball trying to unjustly enrich my self. After selling our house in which I saved the deal with the buyers because my agent friend botched it up good, she has been a disaster as an agent (Our house sold in the $160,000's range for home sale price). The first time infact that our home was under contract the sales of our home fell through while we had earnest money on another home with the agent, deal fell apart, thus are financing fell apart because financing was based on sale of our existing home. She lost our earnest money however because she was one day to late in getting it back plus she called the"Getting our earnest money back under Financing falling through a "clause" when its A standard realty practice to get earnest money back when financing falls through. Agent friend really just knows enough to get agents self into trouble.

PROBLEM: To conclude and shorten this up, we have been looking with agent friend for three months now and have not gotten into another home and the written buyer broker agreement ends this month. I cannot keep a verbal agreement if I cannot sign another buyers/broker agreement (Its the law to have buyers/brokers agreement in place) with her based on her miserable track record and the financial loss she has caused us. It has been our goal the whole time for her to get the commission, but she lost our earnest money early on when we only had a seller's agreement only with her and so much more! Stayed with AGENT stupidly because agents a friend.


Question 1. Can agent bind us or hold us liable for not receiving commission on past sales of our home? Note in seller contract it does not state anywhere that she would receive a commission on getting us into our next house etc. Remember, not trying to get out of letting agent earn agent friend money or to take advantage of agent, never the intent but deal can not be open ended and buyer/broker agreement ends in Dec.

Question 2. Would our email constitute a binding agreement that would hold up in court stating if we don't allow her to get us into another home that we would be liable for any money or any money period? We stuck it out three months with her, I feel we tried in good faith. It's really a catch 22.

P.S I have planned on paying agent friend $500.00 if I get into a house on my own at this point for at least having done paperwork on sale of home. Agent has not stated they will take to small claims court but not sure what agent will possibly do even though a friend.

 

[jharris352]

I personally think you can simply cancel the agreement in writing by sending her another email stating you wish to cancel their representation. If you want to make it even more solid, write her a check for $50 and send it in a letter stating that you appreciate her hard effort but you no longer need her services. If you were willing to pay her $500, $50 should be a bargain. If she cashes the check she is stuck to your new deal.

Good luck.

 

[kolob]

Thanks for the advice. Do you think sending her something in writing however is wise at this point. I was thinking the written buyers broker agreement ends in a few days.If I send her anything in writing regarding or referring to a verbal agreement this may just amplify acknowledgement of such an agreement, as I understand everything in realty terms needs to be in a written contract. So what your suggesting is just give agent a note stating something to the effect "I won't require her services anymore", no more no less and give agent a check and when agent cashes that check that will imply that any verbal agreements ,our business dealings are finished. It sounds like a good idea, would that hold up in a small claims court do you think? I don't think agent will do anything like this but who knows knowing them. The agent has been a disaster and no deal can be open ended, my fault I didn't set something up differently in writing.

 

[jharris352]

Buyer's agent agreements are breakable. Sending her a termination agreement will not give her any more ammo than she has. If she cashes the check she will be bound to it and I'll bet you anything she does. If she doesn't cash the check you are in no worse shape than you are now. That having been said, i don't think she has a case against you even if she wants to sue.

 

[kolob]

The thing gets more interesting. Her representation officially ends one way or another this week of course, the written buyers broker agreement, however she started a short sales deal for us that she is involved with and I want to go down and ask her agency to place it with another agent. She still makes something if we get another agent from her agency to rep the property, but there is a chance the deal might fall apart also. I would not want to write her a check until I knew deal wouldn't go through. The best thing would be to cancel the property offer, but wife wants to continue on it. Is it best just to write something on the check stating, will not require your realty services anymore so she cannot claim the money was for something else or would that be obvious (She has a strange health side business etc) or just have a note accompany the check and copy both of them. I don't think I will ever use the services of a friend again, never imagine agent not knowing what they were doing, literally. Had other professionals complain regarding agent.

Thanks again a million