If I put my house up for sale and signed a 12 month contract, what will happen if I terminate early?
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If I put my house up for sale and signed a 12 month contract, what will happen if I terminate early?
I changed my mind?
Asked on August 16, 2011 Ohio
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
In most states there is a required listing agreement to be signed by the seller with the listing brokerage setting forth the terms and conditions of the listing and the result if the seller decides that he or she wishes to cancel the listing.
In most cases (California for example), the listing agreement sets forth the amount of the commission to the listing brokerage for the home's list price and if the seller decides to cancel the lisitng, the seller is obligated to pay the listing brokerage the full amount of the agreed upon real estate commission.
For example, if a home was listed for $500,000 during a 12 month listing, the commission was 6% of the sales price and the seller decides to cancel the listing, the seller would most likely be liable for $30,000 in real estate commission.
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