Question (CA): We submitted a full price written offer to purchase a residential lot in Granbury, Texas. We received a verbal acceptance via the seller's agent to our agent. Forty eight hours later our agent informed us that the owner could not sell because her husband would not sign the required legal documents. The title deeds were recorded in the owners name only before marriage. Where does this leave us?
Answer: With no contract, I'm afraid. To begin with, there is no such thing as a "verbal acceptance" of a real estate contract. What you had was only an offer, not a contract because all parties to the transaction did not sign it. Although one can enter into verbal agreements that can be binding, especially with witnesses who attest to them, and therefore are "contracts" provided such agreements also include the other contract requirements. One of the exceptions is a real estate transaction.
Question (FL): I am considering holding an Open House in a few weeks and I want to know if I should include my agent in the process. My contract states that if he finds a buyer, commission will be 5 percent and if I find a buyer it will be 3 percent.
Do you think that he would take offense if I held the Open House on my own? I live in a small town and he will get wind of it, and I have also declined his offer to have his step-son install flooring at an estimated $2,500.00. My house has now been on the market since 12/10/05 and has only been shown four times.
In addition, I took out a newspaper ad on the coast of Florida that my agent said resulted in numerous inquiries, but he only showed it to one couple four days later. My contract is good through June and I don't want to be viewed as a difficult seller in the tiny real estate sector here in town. Any suggestions would be greatly appreciated.
Answer: It appears that you have an "Exclusive Agency" type of listing agreement in so far as your listing agent receives a higher commission if he finds the buyer than if you find the buyer. Notwithstanding your concerns -- which appear to us to be very logical and well-thought-out, your agent should not have agreed to a variable commission rate if he were going to take offense should you exercise your contractual right to locate the buyer yourself. So, your agent should not take offense to your holding an open house on your own because he contractually agreed that you could.
However, having said that, is your listing contract absolutely clear about the parties responsibilities and obligations to notice one another in order to keep track of who is credited with locating a particular buyer? Additionally, it appears that you and your listing agent are working at odds with one another. The sale of a residence, if it is going to achieve the best interests of the seller, involves close teamwork between the agent and the principal, and is founded upon respect and trust. If that type of relationship does not exist, perhaps you as the seller should request a conference with your agent to attempt to achieve this teamwork.
Question (PA): A seller and buyer signed a common "Agreement to Sell Real Estate" from Staples Store, created by Socrates. A section in "Default by Seller" states, "Or the Buyer shall have only the right of specific performance."
What is the difference between "only the right" and "have the right?" The seller assumes that "only the right" indicates that the buyer cannot sue for anything else but the real estate, not damages nor suffering.
Story: The buyer failed to confirm settlement closing by the agreed scheduled time. The buyer was also interested in other properties within the same surrounding area, however, lives out of the state. When the buyer learned that the other properties exceeded his set budget, he contacted the seller with a higher offer. The buyer's higher offer was after the scheduled deadline and the real estate was already sold.
On this scheduled deadline, the seller was unable to communicate with the buyer and mailed a letter with a refund. The seller did not deduct any liquidation damages and proceeded with the next interested buyer.
Today, the buyer wants to sue for specific performance, damages, income, and profit. The seller wishes to better understand "ONLY the right of specific performance" and whether the seller is required to sell the real estate to the buyer.
Answer: This sounds like a situation where the buyer bargained himself out of a good deal. As I understand the facts, the buyer defaulted when he didn't show up for the closing. It is the seller that has the remedy, not the buyer.
Without reading this store-bought contract form, it is hard to put the issue in perspective. If the remedy for the buyer is only specific performance, the buyer has waived his ability to pursue other remedies, and such a waiver is enforceable in court.
Question (VA): My wife and I are thinking of relocating to the Fort Worth Texas area. We presently live in Virginia. I understand if I buy a house with land I can raise livestock and receive a property tax break. I'd like some details on that. How much land is necessary to get a tax break and what kind of livestock is required. We are interested in about 10 to 20 acres within an hour or so from DFW.
Answer: We suggest you read an informative (although somewhat out of date as it was published in 2001 -- but containing a good overview) booklet offered by the Texas A & M Research Center, "Agricultural Taxes in Texas ." For details regarding exact tax exemptions, we recommend you contact the county appraisal district for the county in which you wish to relocate. In or around Dallas, that would be the Dallas Central Appraisal District . In or around Ft. Worth, that would be the Tarrant (County) Appraisal District .
