Binding Contract?????

**Ricorocks** · 10-27-2008, 12:28 PM

Hello,

My wife & I are somewhat unhappy with the services from our Realtor, were selling. I would like to drastically alter the terms, or (most preferably) end the contract now:

The C21 firm (franchise) our Realtor worked for, when we signed the agreement to sell our home, has gone out of business.

Our Realtor is now employed with a different C21 franchise, she has asked us to sign a 'Release' from the previous C21, & sign a 'Renewal' with her new firm.

If we refuse to sign the Renewal or transfer of contract form, are we still bound to the original agreement?

Thanks
Ricorocks

**minnesota-mls** · 10-27-2008, 04:00 PM

As they say with many things, the devil is "in the details."

Here in the Minnesota real estate market, we do write up our listing contracts such that the client can cancel AT ANY POINT during the process with us. If they are unable, then can simply end the agreement.

However, not all real estate agents or teams handle it this way. Many agents will not let a person out of the contract without the new listing agent hired having to pay the "fired" agent a referral fee.

Not sure if this helps entirely, but we always encourage our clients to read the listing contract thoroughly. This should help answer your question.

**Mike Taylor** · 10-28-2008, 04:10 AM

You will have to read the contract, but my best guess is you are not bound by the original agreement. The listing agreement is with the brokerage, not the agent. If the brokerage goes out of business, your contract should die with it.

**jamesww** · 10-29-2008, 03:36 PM

I believe that in your case the National real estate law would treat your case in the same manner that they would if the broker died. If the broker dies or if the home owner dies the listing contract is automatically voided. I believe that a brokerage going under should be treated in the same manner as the broker of an office passing away. For all business transactions it is pretty much the same. Please remember that this is my opinion and that I am not an attorney and so this should not be deemed as legal advice. I believe you should consult an attorney on this issue. If you would like to try and get an answer to your question for free I have posted a link to a legal forum to help you out.

http://forum.freeadvice.com/