Hi:

I have listed my home in central IL with an MLS agent for 6%. This is a 4 months contract and I had just completed with 2 months. After this term, there is a protection period of 90 days. So far I have not received any offer yet. Surprisingly, one of my friend is moving to my city and very much interested in my home.  Here is the situation, she will be ready to buy my home only after 2 months (she got an offer in her home and closing her home in 2 months) but have to move in before the school season starts for her kids. She like to give an offer with the closing date after 4-5 months from now but want to move in soon and pay the rent till the closing date. My buyer is flexible with the closing date and is not working with any buyer agent. So my questions are..

1. Is it advisable (or any risk involved) to cancel the contract with my seller agent (I beleive the contract termination fee is $300 and I'm ok with this), take my home out of market, sign an offer with my buyer with an extended future date and let her move in and receive the rent till that time?  

2. Can I close my home without any agent commission as I found the buyer without even the MLS listing/ads?

3. If NO for #2, how much can I bargain?

4. As my home will become a rental home for 2-3 months, where can I find zonal laws about my sub division?

Thanks a lot for your advice.

Hi Viijay, You owe your agent a commission. It does not matter who found the buyer unless you spefically wrote this into the contract. Let your agent know about your friend and ask him/her to put the contract together. You already have questions about leasing in the subdivision so let your agent do their job and provide the information. By posting online your question you have already proved your intention to not pay your agent for the work they have done. if you try and weasel your way out of your contract to save some money I hope your agent comes after you and collects.

Have you considered whether this buyer is qualified to buy your home? Does she have aloan approval? What happens if she moves into your home and then her home sale falls through? Are you prepared to be a landlord? Are there any negative ramifications with your own loan by moving out of the property and having a tenant put in?

As for  rental restrictions for your subdivision if you have an owner's association I would start by asking them. You may want to contact your local city hall and ask, as well. Local property managers and your agent should be good sources of information.

Thanks for your advice. Unfortunately, my friend is not moving to my town due to changes in her job and I just have to consider that I lost this offer. Thanks once again!

Beth is right. Believe me, you don't want to enter into any agreements with anyone..friend or not..without representation. Not all is fair in the RE show. Your agent is trained and knowledgable about the RE laws in your state and he/she has your best interest in mind.

Good Luck 

Hi Viijay,  I'm sorry things fell apart with your friend. hopefully her job is safe.  In this turbulent economic market sales falling through is a part of our business. Job problems are one of those things we agents can not control.  Best of luck to you on getting it sold.