Can I sue my real estate agent for a failed rent to own contract?

[yehudi]

We paid our real estate agent approximately $2500 as an "up front real estate commission" in October of 2011 during a early possession (rent to own) agreement. Fast forward to now, we are going through the eviction process with the tenant/buyers that our agent brought us. Can we sue him to recoup the money that we paid him as a commission? Here is the exact wording in the contract, "The up front real estate commissions paid by the seller to XXXX Realty will be 1.38% of the purchase price, paid within 2 business days of seller's receipt of buyer's $5000 deposit. Upon final closing, XXXX Realty is to receive from the seller, the remaining 4.62% of the purchase price"

[hardin]

OK, that part talks about payment. What does the agreement say about what happens if the deal fails?

The agent did indeed supply the seller with tenants. Therefore he performed and was paid the partial commission.

[boynton35]

Based on what you say here the agent earned the commission. The agent brought you a tenant/buyer at your price and terms. There's no grounds for a suit. The subsequent eviction has no bearing on your question.

realtor.sailor

[ahanu]

In short, you can sue your realtor, but it is doubtful you will win. Unless you have built in some sort of performance clause ( like they have.. buyer must close or a refund of x commission will be reimbursed), it is unlikely that you will win, unless they promised that the buyer they brought you will close, and that is doubtful.

You are more likely to get some money out of the buyer for the balance of the rent they owe.. Once again, a long process that may yield little for the effort.

The problem with a deal like this is that the Realtors have no skin in the game other than advertising and time. They are not owners - but they get a hefty chunk. I work with investors like you all of the time with one very important difference - when I lease option your property, I am the responsible party - taking the lease and find the tenant buyer - I make my money from the buyer, not you. If my buyer does not perform my company has to cover, therefore we specialize in finding suitable buyers who are going to perform - and if they don't we deal with it not you. If you are interested in do a lease option with a company that will not make you pay.. go to our site and give us your information.

All the best..
Jules
http://connectedinvestors.com/jbcarney1/ibuy