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Full Price, All Cash, No Contingency Offers

While these may have been more plentiful in the past few years, it still occasionally happens that a full price offer will come in, which financing either checked as "all cash" or consistent with the terms of the MLS (e.g. conventinal financing allowed). If the offer also has no contingencies other than those expressly permitted by the MLS or outside of industry norms at the time the offer is presented, you may as a selling realtor be entitled to a commission if the seller refuses to execute the offer.

I have been successful recently in pursuing cases on behalf of selling brokers against sellers where the seller refuses to sign. The theory in court is that MLS is nothing more than an employment agreement, and that the selling agent has satisfied the terms of employment when an offer is brought in, whcih is in accordance with the MLS terms and industry standards. I've had three cases like this: in two the seller signed off ont he offer after I filed the complaint in court, and on the third, the seller paid the selling agent almost their full commission and then re-listed the house at a higher price. I wonder if the selling agent on the third deal then sold the buyer another home and ended up with two commissions, hmmmmmm?

Just letting you guys and gals know so you don't leave money on the table after fully performing.

Posted by Hank Sorensen on 08/01/2006 08:22 PM

Comments (9)

full price offer, all cash offer, no contingency offer

9 Comments on Full Price, All Cash, No Contingency Offers

NOV

2006

Nothing wrong with earning two commissions if the selling agent performed twice.

Glad to see you and your insight on ActiveRain... even if you took a 3-month hiatus from posting to your blog here! I know you are well known and highly respected in Florida.

Very generous comments. Thanks.

NOV

2006

"Hank"

Questions for you...What percentage of cases like these actually go before a judge? Does your presence in a "transaction gone bad" help the Sellers understand that they are attempting to skirt around having to pay to play?

TLW "The Lovely Wife"...Sorry I Am Curious...ROAR!

Usually a nastygram on my letterhead forces the seller to either (a) pay the selling broker some funds to make him go away, or (b) come to the table to sign the offer (as he doesn't want to go to the expense of hiring an attorney to fight the issue). Either way, you as the selling broker get what you want, which is money. It's very rare that a seller wants to litigate the issue - I've only had three cases like this actually go into litigation, and I settled all of them in favor of my client, the selling broker.

NOV

2006

"Hank"

Thank you for your response. I appreciate that.

It is good to know that a "letterhead" will shine some light on the issue at hand. This tells me your are a good Attorney. If they make it to court, well, something is wrong with the picture. That something can either be a very aggressive Seller or a bad Attorney. I see you are not a bad Attorney. A bad Attorney would have ignored my question. :0)

I have another question. You will probably like this one.

Do you handle evictions in Polk County or know of anyone who does?

This is for future reference. This time around I was able to skirt around a tenant. Lucky for me she abandoned the home, so I was able to take possession. But, unfortunately she had her boyfriend break into the home and destroy all the wiring to the power meter and he also stole our A.C. units while he was there. This is going to cost me at least $1,000. There is a warrant in motion. He was seen doing this to our house by a neighbor in the area. Next time around I am getting a guy like you to handle this kind of situation for me. I need to get out of the eviction loop. Her boyfriend threatened to kick my 110lb a*s. The guy is lucky I did not make him dance with my .38 (BAM) Don't worry I never really do that. I think about it though!

I am looking for a flat rate fee. Do you do flat rate?This is for Broker Bryant's and my personal rental homes. The homes are not purchased or affiliated with our Company. We have four of them so far. Will probably have more. I could turn into a very good client. I am in Polk that's, POKE to the average Joe here. Sorry, couldn't resist my poke joke. :0)

TLW "The Lovely Wife"...Thanking You In Advance...ROAR!

I actually get over there to Poke and the surrounding area a bit lately. I have some clients in Plant City that have obtained some of my attention, so I could definitely see helping you out. I don't do criminal law - that's my next door neighbor, so keep your nose clean. I actually favor not going to court if at all possible (I know that's rare for an attorney), but I have no problem taking off the gloves if needed. My advicxe on your rentals - get as much on a security deposit as possible (to the extent that it hurts them to leave). Let me know if/when I can help.

Excellent...Evictions are distasteful to me. I am too old for this crap. I will bookmark you. I have a tenant wavering as I type. He is very close to meeting one of your letterheads.

<Keep my nose clean> It is clean. I was joking on the bullet dancing. I am not an idiot. Just love that visual picture. <Deposit> Okay, when I rent it after repairs are completed I will pull larger deposit.

Send me business cards and info on retaining you. Would like to get the retainer part taken care of ASAP...Send the paperwork for this. You're in Buddy. Evictions are a piece of cake with you guys. Mostly paperwork. Flat rate?

B. Tutas P.O. Box 969 Dundee FL 33838.

Read our posts you will see we are really good folks. Start with this true story about one of our tenants.

TLW "The Lovely Wife"...Thanks I Needed That I Am Relieved...ROAR!

MAR

2007

I like your style Hank.

You mention above the alternatives for a selling broker in the case of a full price, all cash, no contingency offer... what about the Buyer? -doesnt the seller *have* to sell if there is a full price,all cash,true no contingency offer?...ie. isnt the listing on MLS an offer to sell, and thus a written (and cash funded) agreement to buy (with no contingencies) all that is required to have an agreement?

have you handled cases like this , and what was the outcome? Is there a way for a seller to legally enable them to not sell for the price they have advertised?

The seller doesn;t have to sell as the statute of fraus prevents him from having a case for specific performance enforced against him. But, the seller's obligation to the buyer are legally separate and distrinct from the seller's obligation to the brokers. The courts treat the MLS as an offer to sell, so if an offer comes in that is in compliance with the terms of the listing, the courts say that the broker has complied with the "employment agreement" set forth in the MLS, and the broker gets paid. That's it. The buyer has no legal rights to enforce a contract that is not signed.

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