Background - I listed my house for sale with an agency about 1 1/2 ago and had called to cancel my contact (planning to sell on my own) only to find that there was potential client that was about to make an offer. The offer came and I rejected with a counter offer (which was the listed asking price) and they rejected. After they rejected my offer I told my agent that I plan to cancel my contact and take my house off the market. He persuaded me to wait until Monday that the potential buyer wanted to talk to him again (I guess another offer). I accepted. My question is if the buyer makes an offer on Monday to purchase my home for the listed price am I legally obligated by my real estate contract with the listing agency to accept? The reason I want to terminate the contract is over time I have reduced the price of my home to where after closing cost I will still owe about 25,000 on the mortgage. Please advise of the legal ramification this might cause.

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Brett Ehart    April 24, 2011

You would not be obligated to sell the house, but you could be responsible for paying the real estate agent's commission if you refuse to sell. In my opinion, the only way you would have to pay him is if the offer is for all cash, with no contingencies for loan approval, appraisal, inspection, etc.

You could also be liable for the commission if you cancel the contract prior to the expiration date. Your agent does not have to let you cancel. If the agent does not want to cancel the contract, you should seek legal advice before proceeding.