If I signed a listing agreement with an agent that did not include a sales price for the home, was it legally binding?
Question Details: We were going to hire a real estate agent. We signed a listing agreement but never came to an agreement on the sales price of the house so this was left blank. The agent provided no further services and we opted not to proceed w/listing the home. Then, 3 months later, we opted to officially list the home and hired a different agent. Now the first agent wants a portion of the 2nd agents commission if we sell our house. Is the original listing agreement binding if it did not list any sales price and if the home was never officially listed and she never provided any services?
A contract is required to include essential terms. The price is an essential term. Since the price was omitted from the contract (listing agreement) with the first agent, there is no valid contract and you have a defense to enforcement of the contract. Since there isn't an enforceable contract, the first agent cannot claim a portion of the commission paid to the second agent.