Back to News
Legal Hotline Attorney Vern Jarboe answers frequently asked questions from Kansas REALTORS® about their transactions.
REBR Legal Hotline is now available in the REBR IMS Store! Only $135 will keep you and your entire firm in touch with Vern Jarboe, the REBR Legal Hotline Attorney all year long!
Contract - Seller Threatens Suit
Question: You have a situation where a sale was lost due to non-responsiveness of the seller to a buyer's inquiries. The seller apparently ignored the fact that the sale was at risk and rented an apartment and is now threatening to sue the REALTOR®.
Answer: If, you can document your efforts at contact and lack of responsiveness from the seller, then you should be in good shape. If you get sued in Small Claims Court, you cannot take an attorney but you should take whatever documentation you have to establish the fact that the sale was lost due to the seller's inactivity.
Contract - Brokerage Commission Agreement
Question: You have a situation where a land owner contacted you and indicated they wanted to cancel their listing. You agreed to allow it to be removed from the market but did not cancel the agreement. It now appears they are selling to a buyer that they found during the term of your listing but failed to refer that buyer to you for handling the transaction.
Answer: Based on the facts that you described, it would appear you have a good likelihood of success in collecting your commission. However, you will not be able to file a lien and will be forced to instigate litigation to collect the money. There is some likelihood that a strong letter to the consumer might cause them to reconsider their actions. However, you are going to have to decide whether pursuit of litigation will make it worth it.
Agency - Liability Issues
Question: You asked about a situation where your company was representing a buyer on a new construction contract. The buyer has become disgruntled with your agent and is contending there is a problem with the agency disclosure. You wanted to know if changing agents would indicate any liability.
Answer: Agents are changed for many reasons, including personality conflicts, work load, etc. Merely changing agents should not indicate any wrongdoing. The change in agents should be referenced on the MLS and by amendment to the contract.
Contract - No Deal Without Signatures
Question: You asked about a situation where a friend signed a listing agreement to sell his house. He then entered into a contract for sale. When the title work was done, it indicated that the owner's daughter was also on the deed to the property. The daughter is refusing to go ahead with the sale. You wanted to know if the contract for sale could be enforced.
Answer: All owners need to sign on the contract for sale. It would not likely appear that the contract could be enforced.
License Law - Authority to Fine
Question: You asked about a situation where one of your agents had received a letter from KREC fining the agent for failing to obtain the earnest money at the time the contract was signed. KREC assessed the fine without a hearing based upon a letter from the seller complaining and a call by one of the KREC investigators to your office.
Answer: The KREC can assess fines without a hearing. You asked whether it was worth the time to contest the fine and in this case, considering the amount of the fine, it is probably more economical to pay the fine than to contest it.
Foreclosure - Bidding Against Mortgage Company
Question: You asked about a situation where a house was foreclosed. The mortgage on the house was $132,000. The mortgage company only bid $68,400 at the foreclosure sale, and you wanted to know if they could bid less than the value of the mortgage.
Answer: The mortgage company only has to bid enough to beat out any other bidders to get the property. If no one else is bidding, then it is not necessary to bid the full value of the amount owed on the loan.
