If I had a property listed with an agent but canceled our contract, can I sell it owner financed to someone with the knowledge they will be reselling probably within 60 days?

Asked on July 30, 2015 under Real Estate Law, Arkansas


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

You may sell your property to anyone you like, whether or not they will be reselling it. If your question is, can you avoid paying a commission to the agent, you will have to pay them if the person you are selling it to saw it while the contract with the agent was in force; and would likely have to pay if that person then resells to somone else who saw the home while the agent showed it, since a court in that case could easily find that this transaction was a deliberate attempt to circumvent the obligation to pay the commission, by having an intermediate "straw man" or confederate buyer, and if a court believed that to the case, the court would look to the reality of the situation--that someone who saw the house while there was a contract with the agent ended up buying it--and find that a commission is due.

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