Breaking a realtor contract

[NHdisneylover]

I am hoping some of you have experience in this area. We listed our New Hampshire home for sale with a realtor back in June. The contract does not expire until December. We have been very unhappy with the realtor. Emails (and even phone messages) go unanswered for a week or more most times. Often we only get an answer after 2-3 follow ups. We do not bug the realtor much (we have bought and sold 6 other homes so this is not a new thing for us) and only ask for a bi weekly update and have had a couple of minor questions. The main thing we have had to email and call about over and over is house listing falling off of craigslist. It has not been put up there even one time (including the first) without us asking about it repeatedly (and yet even the realtor does say nearly every showing has come from that listing).
Also, the realtor has been supposed to inform us of any issues we needed to take care of to keep the house in top notch condition because we are not on sight. We learned that it was shown all summer with a warped floor in the basement and torn hot tub cover (leftovers from the terrible tenants we temporarily had) that he knew about and knew was causing people to not want the hosue but did not mention so as to not "cause us stress."

We have the oppurtunity now to have a family we know and trust rent the home for one year and then they would like to possibly buy it (they need a year to save up more for the down payment as they are not comfortable with a huge loan). They have 3 young children so do not want to move in with it still on the market and then move out a month later if it (miraculously) sells.

I guess my question boils down to two things:
1. Generally, can one pull a house off the market (break the contract) if one decides not to sell at the time. It would be at minimum a year before we sell at this point and we would not be putting it up with another realtor or even by owner--just deciding not to sell at this time?
2. If #1 is not an option, are the items I described above big enough problems to let us leagally get out of the contract anyway?

 

[Cheshire Figment]

My question would be is your problem actually with the realtor or with the agent? Note that technically the agent work for the realtor. If you are dealing with an agent, the realtor may not even be aware there is a problem.

Unless the contract you signed talks about rentals, taking it off the market and making it a rental would not subject you to any commission. Just send a letter (preferably certified return receipt) indicating that you are converting the property to a rental and removing it from the market, and the services are no longer needed.

Even if they say they will not let you out of the contract, they would have to bring you a purchaser who is willing to pay the full price with no stipulations whatever to have you owe them commission.

And a last thing is you may want to look at a "Lease with option to purchase". This is where you would have an agreement with the rentor for payment of an above-market price for the rental, and after a fixed period (usually 12 months) they may purchase the house at a fixed, predetermined price. And a pre-agreed portion of the rent would be applied as partial down payment.

 

[The Mystery Machine]

I don't know. What does your contract say about taking it off the market? You can find out your state laws if you need to know details.
Is there a fee if you take it off the market? Make sure you find that out BEFORE you take action. In fact there is probably a fee with breaking a contract. Find out how much it is.

You would run into serious trouble if you sign up another realtor to sell/lease to buy your property within the same time frame.

I would not do a lease to buy until the contract is expired otherwise you will be in violation of the contract.

 

[golfgal]

My question would be is your problem actually with the realtor or with the agent? Note that technically the agent work for the realtor. If you are dealing with an agent, the realtor may not even be aware there is a problem.

Unless the contract you signed talks about rentals, taking it off the market and making it a rental would not subject you to any commission. Just send a letter (preferably certified return receipt) indicating that you are converting the property to a rental and removing it from the market, and the services are no longer needed.

Even if they say they will not let you out of the contract, they would have to bring you a purchaser who is willing to pay the full price with no stipulations whatever to have you owe them commission.

And a last thing is you may want to look at a "Lease with option to purchase". This is where you would have an agreement with the rentor for payment of an above-market price for the rental, and after a fixed period (usually 12 months) they may purchase the house at a fixed, predetermined price. And a pre-agreed portion of the rent would be applied as partial down payment.

Maybe it is different where you are but around here realtor and agent are the same thing. The BROKER is the one that owns the real estate agency.


In all the real estate contracts we have had there has always been the option to pull the house off the market before the listing expired. There has also been a clause for pulling out of the contract for lack of performance on the real estate agent's side. Read through your contract, call the real estate agent and explain your issues. If she doesn't return your calls within 24 hours, call the broker and let him/her know what is going on.

 

[The Mystery Machine]

OP, make sure you check the cancellation fee first before you break the contract and do not hire another realtor to do the lease to buy until the contract is up and you should be good.

Yes you might have to bite the cancellation fee to get your renters in there now.

 

[NHdisneylover]

I will have to llok to see if there is a fee (I think I would remember that). DH has the contract at work and he is out of the country this week.

The agent/broker/realtor are all one and the same. It is a small, local realty and the owner is the listing agent (and only agent currently on staff).

We do not intend to list with another agency any time soon. Nor do we intend to use a realtor to lease it. So, no other realtor would be invovled.

ETA: I found a copy of the contract in the email. There is no mention of a fee if the property is taken off the market. Only that if it sells within three montsh of when the contract expires to someone the realtor had brought in taht the realtor still gets the comission. Actually, there is no mention at all about taking it off the market.

oh and THANK YOU all for your input and advice.

 

[The Mystery Machine]

I will have to llok to see if there is a fee (I think I would remember that). DH has the contract at work and he is out of the country this week.

The agent/broker/realtor are all one and the same. It is a small, local realty and the owner is the listing agent (and only agent currently on staff).

We do not intend to list with another agency any time soon. Nor do we intend to use a realtor to lease it. So, no other realtor would be invovled.

I would be surprised if there is no fee. Everytime we signed a contract it was in the 500 range.

 

[NHdisneylover]

I would be surprised if there is no fee. Everytime we signed a contract it was in the 500 range.

I edited while you were posting I found the contract and cannot find anywhere that has any mention of early temination at all nor any mentions of fees other than the 6% selling fee

 

[golfgal]

I would be surprised if there is no fee. Everytime we signed a contract it was in the 500 range.

That might be a regional fee, we have never had a fee in any of our real estate contracts to pull the house off the market or end the contract early.

 

[The Mystery Machine]

I edited while you were posting I found the contract and cannot find anywhere that has any mention of early temination at all nor any mentions of fees other than the 6% selling fee

Good. I would have advised you to not do a thing without the contract in front of you.

Next up, call up the company and lay it on them. Tell them you want to formally take your house off the market and what do they require of you for termination.

You may have to sign papers, send a letter, etc....

Good Luck!

 

[The Mystery Machine]

That might be a regional fee, we have never had a fee in any of our real estate contracts to pull the house off the market or end the contract early.

No, it is with the realty company. Basically it is payment to the realtor for putting their time and effort into selling your home.

Some do it, some don't. I imagine in this market they may be leaving that stuff out.

 

[sunnyday123]

I will have to llok to see if there is a fee (I think I would remember that). DH has the contract at work and he is out of the country this week.

The agent/broker/realtor are all one and the same. It is a small, local realty and the owner is the listing agent (and only agent currently on staff).

We do not intend to list with another agency any time soon. Nor do we intend to use a realtor to lease it. So, no other realtor would be invovled.

ETA: I found a copy of the contract in the email. There is no mention of a fee if the property is taken off the market. Only that if it sells within three montsh of when the contract expires to someone the realtor had brought in taht the realtor still gets the comission. Actually, there is no mention at all about taking it off the market.

oh and THANK YOU all for your input and advice.

You are abosolutely fine with breaking the contract for non-performance. Not calling someone back asap is unacceptable. Make sure you do it in writing and keep a copy for your records.

 

[Bren's Mom]

Since you're not local I would notify your current realtor IN WRITING and send it certified mail, return receipt requested. In the letter, detail his lack of follow up and state that effective X date you are removing the house from the market and do not plan to relist for at least one year.

Note: I would no to a rent to own right now. Even if you choose a $ amount above current market value there's no way to say what the value will be a year from now. If your market picks up, the amount you choose could be below what you could get otherwise. Just rent it, period. If they can get a loan at the end of the one year rental, fine. If not, you can put it back on the market.

Good luck!

 

[The Mystery Machine]

Note: I would no to a rent to own right now. Even if you choose a $ amount above current market value there's no way to say what the value will be a year from now. If your market picks up, the amount you choose could be below what you could get otherwise. Just rent it, period. If they can get a loan at the end of the one year rental, fine. If not, you can put it back on the market.

Good luck!

Ditto on that as well.

However I would not including any relisting info as it is none of their business.

 

[NHdisneylover]

Thanks everyone for the advice

I just got off the phone with the realtor. I started with the amicalble we might want to take it off the market currently and rent it out and consider relisting next summer. (I did not say with whom and let him assume as he will). He said that was okay though he claims houses sell best between late October and December In Mexico where my parents live--that is somewhat true. In rural New Hampshire--really not so much Anyway, when we get good confirmation from the future tenants that they are 100% I will send something in writing. Thanks to all of you for suggesting return receipt. That is smart and the kind of thing that might have slipped my mind I think I will send an initial email with confirmation and then also a certified letter (which can take a couple of weeks to get there from Germany).

Yes, we will just go with staright one year lease with a "first option" to buy at the end of that at whatever price we then set based on market value.