Moral Dilemma

[StandFast]

I would appreciate forum members thoughts on a decision I need to make.

We are getting ready to sell our home and will be listing this with an agent/broker (who is also a friend) this weekend. We have not signed anything yet, but did tell the agent that we would sign with him.

We were just approached by a potential buyer who may be serious about purchasing our home and know we haven’t listed it with the agent yet. If they are serious and decide to buy, we both could save thousands of dollars by selling and not using an agent.

While I am under no legal obligations to the agent, what about the moral/ethical issue? I gave the agent my word that I would be listing with him.

Thanks, I’d appreciate your thoughts.

 

[puzzleannie]

if you know how to negotiate all the ins and outs of a home sale, see to it that buyer is qualified for his mortgage, have a title company or real estate attorney you can work with to make sure the paperwork, escrow etc is handled properly and that you have a valid sales agreement, go for it. You have no obligation to the agent if you have not signed anything but then you also have no right to ask for any help if you have not retained an agent to work in your behalf.

 

[StandFast]

I recognize I’m under no legal obligation, but doesn’t giving my word give me a moral obligation?

 

[camerong]

I want to caution you that you may, in fact, be under a legal obligation. This should not be construed as legal advice. Speaking generally about contract law–in many instances, one does NOT need to sign a contract for a contract to exist. Contrary to popular belief, verbally agreeing to an arrangement creates a binding contract for many types of transactions. I am not dispensing legal advice here, but depending upon the circumstances in which you told your friend you would list with him, you may have already formed a binding contract. I strongly encourage you to consider contacting an attorney about this before you make any decisions.

Regarding the moral side, it seems pretty clear that breaking your “word” to someone is a form of lying. Is there really any question what Jesus would do in your place? Break an oath, and hurt someone, for a few thousand dollars?

 

[Just_Lurking]

Tell the agent that you may have found a buyer, and if the deal pans out, then you would like 1/2 of the commission. If the agent agrees, make sure the listing contract has this in writing.

 

[camerong]

Tell the agent that you may have found a buyer, and if the deal pans out, then you would like 1/2 of the commission. If the agent agrees, make sure the listing contract has this in writing.

I agree this is the best option. It is not uncommon for agents in your situation to take only 3.5% or whatever half their usual rate.

 

[Thomas63116]

Tell the agent that you may have found a buyer, and if the deal pans out, then you would like 1/2 of the commission. If the agent agrees, make sure the listing contract has this in writing.

This is pretty good advice. The real estate law and practice varies by state, but in my area, most agents would probably suggest a “single party listing agreement.” Basically, they agree to list your home for sale to this one potential buyer that you have found and to accept a lower commission. If the deal goes through, they will still handle all of the contract negotiations, inspections, title issues, and other tasks leading up to closing, but they will not have to spend the time marketing the property and trying to find a buyer (thus the reduced commission). If the deal doesn’t go through, you can sign a standard listing contract.

 

[StandFast]

Thomas,
Thanks for your advice on the “single offer” exception. Met with our agent/friend last nite.
Told him we had a moral obligation to him because we gave our word. He was willing to back off and take nothing, and to delay listing in case the buyer made us an offer. We brought up the idea to do the single offer exception and still sign with him and use his firm to handle the transaction. He offered to do the entire thing for 2 per cent as opposed to the usual 6.

All ended well. Conscience is clear. And friendship is maintained.

Thanks!

 

[Kathrin]

Aleays best to talk openly and try to make it all work for everybody.

 

[thistle]

Frankly, the moral of the OP’s post is that relationships with friends should be kept as friends. How many times through lending to or borrowing from friends or doing business with or through friends does this end up causing problems.

 

[Newbie2]

Thomas,
Thanks for your advice on the “single offer” exception. Met with our agent/friend last nite.
Told him we had a moral obligation to him because we gave our word. He was willing to back off and take nothing, and to delay listing in case the buyer made us an offer. We brought up the idea to do the single offer exception and still sign with him and use his firm to handle the transaction. He offered to do the entire thing for 2 per cent as opposed to the usual 6.

All ended well. Conscience is clear. And friendship is maintained.

Thanks!

Outstanding.

 

[Seatuck]

Thomas,
Thanks for your advice on the “single offer” exception. Met with our agent/friend last nite.
Told him we had a moral obligation to him because we gave our word. He was willing to back off and take nothing, and to delay listing in case the buyer made us an offer. We brought up the idea to do the single offer exception and still sign with him and use his firm to handle the transaction. He offered to do the entire thing for 2 per cent as opposed to the usual 6.

All ended well. Conscience is clear. And friendship is maintained.

Thanks!

Wonderful!