Ask George & Chuck: Questions from Consumers July 10, 2007 by George Stephens & Chuck Jacobus
Question (CO): This is a follow-up about a question you answered in regards to NHBCorp. They are selling rights to territories for $9800 to potential representatives. They claim to generate 5 to 10 home sales per month through their system. I have included a copy of their purchase agreement that they give to people who want to sell their homes through their system. These leads are then transferred to the representatives who have paid the $9800 territory fee. Please let me know your thoughts on their system and their attached agreement. Answer: We understand why you would ask your question. However, you have asked us for our opinion regarding a legal document and we do not provide legal advice in this column. You will have to contact a Colorado attorney to offer an opinion regarding this document. There is a difference between providing advice regarding real estate matters, and providing legal advice. One must be an attorney at law to offer legal advice or opinions. I am a licensed real estate broker in Texas, Georgia and Massachusetts and a licensed Mortgage Broker in Texas. Chuck Jacobus is a licensed real estate broker in Texas and a licensed attorney at law with Texas Board Certifications in Residential and Commercial real estate. However, our column only answers real estate questions. Disclosed in every column we publish and every question we answer is the following: "NOTE: The answers to any questions delivered to the "Ask George & Chuck" column do not contain legal advice. If you wish to obtain legal advice, you should consult your own attorney." We hope this helps direct you the a person who will be able to provide you -- legal -- and sound advice! Question (GA): I am buying a house in Georgia, and I was wondering if it is legal to have a contract without a closing date. The sales agent wrote 'TBD' for the closing date, and when I ask her for a specific date, she tries to avoid the answer. I know this isn't right and I want to know if not providing a closing date is illegal. Answer: "TBD" as the Closing Date (referred to in many Georgia Purchase and Sale Agreements as the "Settlement Date") is not an adequate description for that paragraph. If the offer you made through your sales agent with "TBD" indicated for the Closing Date, that offer never met all the requirements to change from an "offer" to a "contract." The Closing Date must be a date certain, agreed to by all parties. Question (MI): I had a house for sale listed with a national real estate franchise whose offices are individually owned and operated. I asked the listing agent to list for 3 months, he listed for 6, and I signed the contract not noticing. At the end of three months I asked the realtor to take the house off the market. He said I could not do that because I was in a listing contract for six months. At around the middle of the fourth month I had a verbal offer from the listing agent's brother who is a Realtor as well. But the deal did not go through as the client changed his mind. At the end of six months I took the house off the market and put up the sale by owner sign. About four months later I get a call for a showing. I agreed on the selling price and took the deposit. I then found out later that the client was the same one that changed his mind to purchase the house from the Realtor a few months earlier. I delayed the sale until the 6 months from taking the house off the market expired. Nonetheless, the Realtor states that he wants his 6 percent commission. Should he have had to present me with a listing of all showings so I would have been aware of which buyers had seen the house through the listing brokerage? If they did not, are they entitled to the commission? Answer: The real estate Listing Agreement contains the terms and provisions to which you as a seller are contractually obligated once you and the listing agent have signed the agreement. Since we don't have a copy of your Listing Agreement, we cannot comment upon it or the language it may or may not have regarding a "protection period" after its expiration. The same holds true as to what the real estate agent is obligated to do – if anything, in order to secure his or her rights to a commission in the event a potential buyer actually buys the subject property during the protection period. If the language is the same as the Michigan Realtors G-1 contract wording, then it is our opinion that you probably do not owe the Listing Realtor the commission. This is based upon the language, "Seller will also pay Broker the commission if, within (we're assuming '6' goes in this blank) months after this contract expires, anyone except another REALTOR® sells the property to someone who learned about it through Broker's efforts during the term of the contract. However, you should hire your own attorney to review your actual listing agreement. In closing, we offer you a piece of advice in all sincerity: You really need to read the entire document carefully -- whether it is a listing agreement, a purchase and sale agreement, or any other legal document, before you sign it. Any terms or words used in a document are fair game for you to question. And, if the real estate agent with whom you are dealing sounds unsure or hesitant about the meaning or meanings, hire an attorney to review the contract. In fact, unless you have had successful experiences with a real estate agent, it is a good idea to have an attorney review the filled in contract BEFORE you sign it. Question (OR): I was told that if I couldn't make my entire monthly mortgage payment that I could send in, say, $100.00 and the lender could not initiate foreclosure action because I had made a partial payment. Is that true? Answer: Unless it was the lender who told you that or provided you with a written statement to that effect, we cannot tell you that it is true. However, the best source for you to check it out is the lender. Call the customer service number provided on nearly every communication you receive from that lender, and ask the customer service representative. Also, let the lender know you are having trouble making the agreed upon mortgage payment. The lender may be able to offer you a legitimate solution to you cash bind. | 
