Real Estate Photography - Who's responsible?

[surpasspro]

I listed my house for sale and my realtor spent $350 between drone footage and photography.  I had a deal in place under contract with a buyer and I decided to pull out and remove the house from the market.  I feed bad about the time my realtor spent, but they are asking for reembursement for the photography.  Should I pay for the whole thing, part of it or nothing?  Is that just a risk the realtor takes and its a cost of doing business?

[Telecaster]

It is fair for you to pay. 

[nereo]

what does your contract say?  That will dictate what you are legally obligated to do.

As a matter of principle, if you were the one to pull out of the deal it's reasonable to pay for expenses incurred.  Frankly, I think your realtor is being very understanding if s/he is only asking for reimbursement for the photography, as you were under contract and then pulled out.

[surpasspro]

The contract doesn't say anything about photography, so no I'm not legally obligated.  Nothing I can find about expenses on my side if I pull out.  I did pull out which I feel bad about, but it was literally the next day after being under contract, not sure if that matters.  I mean what would happen if my house sat on the market and didn't get any offers and then i decided to take it off the market?  Who would pay then?

[nereo]

The contract doesn't say anything about photography, so no I'm not legally obligated.  I did pull out which I feel bad about, but it was literally the next day after being under contract, not sure if that matters.  I mean what would happen if my house sat on the market and didn't get any offers and then i decided to take it off the market?  Who would pay then?

Does the contract say anything about expenses incurred, or about what happens if you (the seller) voluntarily pulls out of a contract?

If your house sat on the market and didn't get any offers then typically you owe nothing, because your realtor has not found you a buyer.  That's the realtor's primary function in this process.  But your realtor DID find you a buyer, and s/he DID incur an expense (photography) in pursuit of that buyer.  It sounds like the realtor did their job, and did it well.

Frankly $350 seems like spare change when it comes to real estate photography, especially with drone shots. That can easily run well over $1k for a similar service in my area.

[Telecaster]

The contract doesn't say anything about photography, so no I'm not legally obligated.  Nothing I can find about expenses on my side if I pull out.  I did pull out which I feel bad about, but it was literally the next day after being under contract, not sure if that matters.  I mean what would happen if my house sat on the market and didn't get any offers and then i decided to take it off the market?  Who would pay then?

This isn't even debatable.   You had an agreement he would sell the house for you.  You broke that agreement the next day.  Fine. But your broker spent real money on your behalf.   You should pay him for that. 

[surpasspro]

The contract doesn't say anything about photography, so no I'm not legally obligated.  Nothing I can find about expenses on my side if I pull out.  I did pull out which I feel bad about, but it was literally the next day after being under contract, not sure if that matters.  I mean what would happen if my house sat on the market and didn't get any offers and then i decided to take it off the market?  Who would pay then?

What else could they ask me to pay for?  Listing it with MLS?  Doesn't the realtor work for their realtor company?  Isn't some of this absorbed by the listing company?

[chasingthegoodlife]

Are you sure your contract doesn’t cover this? I just sold a house (different country) and every agent was very specific about this.

At any rate, when I do business with someone, I try to conduct myself such that they would be happy to work with me again in the future.

[Freedomin5]

At any rate, when I do business with someone, I try to conduct myself such that they would be happy to work with me again in the future.

This. You had a good realtor who marketed your house well and found you a buyer. Good realtors are hard to find. Don’t burn that bridge over a measly $350.

[Sanitary Stache]

If you’re paying for the photography, and it sounds like you should, then you should get the pictures/product.

[LiveLean]

When we sold our house recently, our Realtors quit on us three months in, saying they couldn't sell the house. (Seriously.)  I asked if we could use the photos, which were well done, with our new Realtor. They said sure, but.....the PHOTOGRAPHER wanted another $350. (Gotta love photographers. $350 must be the going rate, BTW). I wasn't about to pay it, but the second Realtor did - and sold the house.

[GilesMM]

You are leaving out too many details.


Did your listing realtor bring the Buyer in?  How?  Via MLS pre-listing? Listing without photos?  Some other way?  Or did your brother decide to buy so you used no realtor services.


Why are you canceling your contract with your realtor now? Who will be your agent in the remainder of the transaction?

[surpasspro]

Ironically I’m also a photographer. So technically they would own the copyright to the images. I did provide some of my own photos for the listing. I do recall when speaking with the realtor if we do this with the photos and I decide not to sell… she made it sound like it was the cost of doing business. Not sure if she said that just to get the listing. I certainly want to do the right thing.

[surpasspro]

You are leaving out too many details.


Did your listing realtor bring the Buyer in?  How?  Via MLS pre-listing? Listing without photos?  Some other way?  Or did your brother decide to buy so you used no realtor services.


Why are you canceling your contract with your realtor now? Who will be your agent in the remainder of the transaction?

Yes the realtor brought in the buyer via mls. No I decided not to sell at this time so I backed out. I had to pay the buyer fees, my attorney and the realtor is asking for the photography. If I do re-list it in the future I’d probably use the same realtor. So not looking to screw anyone over. I can’t be the only one after listing a house that decided to take it off the market. Just playing devils advocate. Isn’t that a risk that the realtor takes?  I didn’t have a decision on whether to use a drone?  What if they charged $1000k. There is nothing in writing that says I’m on the hook for marketing fees if a transaction doesn’t take place.

[Omy]

In our area, the listing agent pays for photos out of their pocket.

Technically, you could owe the agent the entire commission since they did their job and found you a buyer - and you were the one who didn't honor the contract.

I'd be thrilled that I was only being asked to reimburse for photos. Pay your agent and send them a gift basket for their trouble.

[surpasspro]

The entire commission? I backed out the very next day we went into contract. It wasnt like I walked at the closing table. Inspections weren’t even done so who’s to say the buyers would find someone they didn’t like and I wasn’t willing to pay to have it fixed?  Then the contract is void. Or the buyer can’t get financing. Either way the transaction didn’t move forward

[nereo]

The entire commission? I backed out the very next day we went into contract. It wasnt like I walked at the closing table. Inspections weren’t even done so who’s to say the buyers would find someone they didn’t like and I wasn’t willing to pay to have it fixed?  Then the contract is void. Or the buyer can’t get financing. Either way the transaction didn’t move forward

The transaction didn’t move forward because you backed out. Not for any of those other hypotheticals.  Again, it was your choice, and that’s fine, but there seems to be unanimous agreement here that you ought to just pay for the photos that were done for the listing which you hired the realtor to do in the first place, all before you backed out.

You say you “certainly want to do the right thing”. This is it.

[surpasspro]

Yes I will be putting a $350 check in the mail. Thanks everyone

[clarkfan1979]

The entire commission? I backed out the very next day we went into contract. It wasnt like I walked at the closing table. Inspections weren’t even done so who’s to say the buyers would find someone they didn’t like and I wasn’t willing to pay to have it fixed?  Then the contract is void. Or the buyer can’t get financing. Either way the transaction didn’t move forward

You state that you feel bad about breaking the contract. That's normal. You feel bad because you wasted other people's time. In addition to wasting other's people time, the realtor wasted $350 on photos because the seller broke the contract. 

You provided a few hypothetical situations about "what if this" and "what if that". None of that is relevant to your current situation. A deal that falls through because buyer and seller cannot agree to terms is "the cost of the doing business". Having a seller break a contact is much different. You state that you want to "make it right." Paying the $350 for the photos is the obvious answer to "make it right."

[surpasspro]

I'm meeting with my broker to pay for the photography.  How likely is it that the listing broker and the buying broker would sue me for the lost commission?

[Omy]

Unlikely. Be humble and apologetic and promise that you'll use them next time.

[nereo]

I'm meeting with my broker to pay for the photography.  How likely is it that the listing broker and the buying broker would sue me for the lost commission?

I would say it’s extremely unlikely, especially after you’d paid for the photography. Doing so addresses a major point of redress and simultaneously presents your actions as a good faith effort to settle it amicably. Realtors are also in the “people business” - it does them no favors to go nuclear over a situation and risk looking like the person who will sue their clients for relatively minor things.


Edited: earlier I said “likely” when I meant to write “unlikely”. Corrected above.

[GilesMM]

I'm meeting with my broker to pay for the photography.  How likely is it that the listing broker and the buying broker would sue me for the lost commission?

Unlikely since they are not asking for it and no sale occurred.  They have no basis for this.

[surpasspro]

I'm less concerned about my broker, but more about the buyer's realtor since I did have a commission for the buyer side.  My attorney wants another $400 just to review the document and advise.   I'm reading my realtor contract and this is what I see regarding the commission.

B. PAYMENT OF COMPENSATION (COMMISSION). The Owner agrees to pay the Listing Broker (or as the Listing Broker may direct) the Commission if the Property is sold, leased, exchanged or otherwise transferred by/through the Listing Broker, or through any other source (including the direct sale/lease by the Owner) before the Expiration Date.

The Commission shall be earned when a ready, willing and able Buyer/Tenant is produced and shall be paid at the time of the transfer of the Property or signing of the lease. The Owner agrees and acknowledges that the dollar amount of the Commission shall be a lien (a legal claim) on the purchase money proceeds derived from the sale of the Property. The Owner, by executing this Agreement, authorizes and directs the party disbursing the closing proceeds to pay to the Broker(s) the full Commission as set forth above out of the proceeds of the sale, prior to the payment of any funds to the Owner or other lienholders.

In the event the Commission due the Listing Broker from the Owner is not paid per the terms of this Agreement, the Owner agrees to pay all expenses, including reasonable attorney's fees incurred by the Listing Broker, relating to the collection of the Commission.

[surpasspro]

Unlikely since they are not asking for it and no sale occurred.  They have no basis for this.
[/quote]

If I know for sure right now that they would want the commission I'd just go through with the sale.  The commission between the two brokers is $12k.  I just don't want them 6 months later coming back to me demanding the commission.

[nereo]

It sounds like, from a legal standpoint, your realtor earned their commission, and your actions prevented them from receiving it.

Have you straight up asked your realtor if there are any other fees to be paid after backing out? Because that’s step one: do you have any bills for me?

I still doubt they will try to skewer you for the full commission. All they’ve asked for is payment for the photos. Consider yourself lucky / my reading of the contract puts you pretty clearly on the hot seat.

Note: I am not a lawyer, nor should you consider this legal advice.

[surpasspro]

Have you straight up asked your realtor if there are any other fees to be paid after backing out? Because that’s step one: do you have any bills for me?

I spoke with the reator on Monday after speaking with my attorney.  She said she understood our reasons to cancel and only brought up if I could pay for the photography.  I didn't press her more for any other expenses.  I would have thought if she truly wanted the commission she would have said that as that would have influenced my decision to cancel the contract.  I would certainly use her services again if I were to relist the property again.  She also wrote me in an email "I understand your decision to hold off on selling the property. However, I would like to request reimbursement for the photography services provided, as outlined in the attached invoice."

Whether the buyer's agent would request their commission is what I'm more worried about.  I litterally canceled the next day after singing the contract, still canceled, but I maybe it would be a different story if they did the inspections and we were further along?  Tehcnically it may not matter, but hopefully this learning lesson stays relatively small financially.

[Omy]

It's possible, but unlikely.

Your Contract is with the listing broker. They have likely agreed to pay a commission to the buyer broker. If the buyer broker decided to sue, it could come back to bite you since you decided not to perform without any legitimate contingency to void the contract.

This is unlikely since it's expensive to sue and creates bad blood. But you may just have to sweat it out a bit to see if anything comes out of it.

Can I ask why you changed your mind? Was it to sell to someone else without paying realtors?

[surpasspro]

Can I ask why you changed your mind? Was it to sell to someone else without paying realtors?

No, I wouldn't have done that.  I also agreed to not sell the place for the next 6 months as part of the terms to cancel the contract.  I thought it was a good idea to sell the property and intially my wife understood my reasoning.  I listed it and got the offer and as soon as it got real my wife who is more emotional about the place wasn't ready to let it go.  Had she told me just the day before how strongly she felt I could have canceled.  It sucks that we didn't communicate with each other better and let it go as far as it did.  I'm not blaming her as I shouldn't have made the decision without us both being 100% in alignment.  I really do feel bad for everyone involved and especially the buyers.  If they don't come back for the commision then it will be a $1200 learning lesson.  Looks like the statue of limitions is 6 years in my state, so hopefully this is not hanging over my head forever.

[Omy]

That's a reasonable story that buyers and agents could relate to. If you don't hear anything in the next six months, you are probably in the clear.

If you sold it to someone else right away, you'd likely ruffle more feathers.

[surpasspro]

Yeah that's honestly what happened.  The offer was a good one too, so it wasn't about trying to get something better or avoiding commisions.  I even agreed to a 2% buyer's commission to attract more brokers even though now I'm not required to do that and only pay my broker.  In hindsight I may not pay the buyer's agent commission if it opens me up to legal issues.  Not that I plan on going through this ordeal again.

[Telecaster]

Whether the buyer's agent would request their commission is what I'm more worried about.  I litterally canceled the next day after singing the contract, still canceled, but I maybe it would be a different story if they did the inspections and we were further along?  Tehcnically it may not matter, but hopefully this learning lesson stays relatively small financially.

There are valid reasons for cancellation outlined in the contract.   Changing your mind probably isn't one of them, so technically there might be some financial penalties.  However, them going after you at this stage would be kind of a dick move on their part.   They aren't really out anything except some time.  As a guess I'd say they aren't going to bother and just move onto the next property.   

[GilesMM]

I'm less concerned about my broker, but more about the buyer's realtor since I did have a commission for the buyer side.  My attorney wants another $400 just to review the document and advise.   I'm reading my realtor contract and this is what I see regarding the commission.

B. PAYMENT OF COMPENSATION (COMMISSION). The Owner agrees to pay the Listing Broker (or as the Listing Broker may direct) the Commission if the Property is sold, leased, exchanged or otherwise transferred by/through the Listing Broker, or through any other source (including the direct sale/lease by the Owner) before the Expiration Date.

The Commission shall be earned when a ready, willing and able Buyer/Tenant is produced and shall be paid at the time of the transfer of the Property or signing of the lease. The Owner agrees and acknowledges that the dollar amount of the Commission shall be a lien (a legal claim) on the purchase money proceeds derived from the sale of the Property. The Owner, by executing this Agreement, authorizes and directs the party disbursing the closing proceeds to pay to the Broker(s) the full Commission as set forth above out of the proceeds of the sale, prior to the payment of any funds to the Owner or other lienholders.

In the event the Commission due the Listing Broker from the Owner is not paid per the terms of this Agreement, the Owner agrees to pay all expenses, including reasonable attorney's fees incurred by the Listing Broker, relating to the collection of the Commission.

You did NOT sell, lease, exchange or transfer the property so no commission is due to anyone.

[waltworks]

We had a seller back out on us and we threatened to sue (we probably would not have gone through with it) and asked for a decent amount ($5000) to cover time/effort (I had to fly out to look at the house/be there for inspections). Seller paid it because we certainly would have won a lawsuit and we made it really clear how angry we were.

That was like 10 days from closing, though. In the end it was a blessing, that house would have been horrible for us.

In any case, you could in theory have the buyers sue you for damages and/or to perform the contract/sell the house. I agree with others that's unlikely, though.

-W

[surpasspro]

you could in theory have the buyers sue you for damages and/or to perform the contract/sell the house. I agree with others that's unlikely, though.

Our attorney's neogiated that I pay the buy'ers attorney fees and that I don't sell the house within 6 months.  So since I agreed to that they cancelled the contract.  The commissions is between me and the realtor, so that's why I was more concerned.  If it was your situation that close to closing then yes I would understand having to pay out a lot more.  I luckily cancelled before they even did the inspections.  Had they gone through the inspections with no issues and I backed out I think it would be worst.

[iris lily]

You think $350 is bad? My friend has a family estate that goes back several hundred years in Virginia. Her mother died. Her sister listed the property and a real estate agent took extensive film footage as well as photographs to the tune of – I think she said $30,000. There was other work done by the agent.

That seems an astronomical amount of money, but whatever she said it was an astronomical figure.

But the problem was this: the sister had no authority to list the property. The property is not for sale. My friend inherited, her sister did not inherit.

My friend paid the real estate agent back for this sum because to maintain friendly business relationships in this toney little community was important to her.

So yeah, pay the $350.

[Freedomin5]

You think $350 is bad? My friend has a family estate that goes back several hundred years in Virginia. Her mother died. Her sister listed the property and a real estate agent took extensive film footage as well as photographs to the tune of – I think she said $30,000. There was other work done by the agent.

That seems an astronomical amount of money, but whatever she said it was an astronomical figure.

But the problem was this: the sister had no authority to list the property. The property is not for sale. My friend inherited, her sister did not inherit.

My friend paid the real estate agent back for this sum because to maintain friendly business relationships in this toney little community was important to her.

So yeah, pay the $350.

I'm surprised the realtor didn't ask for proof that the person wanting to sell the place actually owned the place. How is that even possible?!

[GilesMM]

You think $350 is bad? My friend has a family estate that goes back several hundred years in Virginia. Her mother died. Her sister listed the property and a real estate agent took extensive film footage as well as photographs to the tune of – I think she said $30,000. There was other work done by the agent.

That seems an astronomical amount of money, but whatever she said it was an astronomical figure.

But the problem was this: the sister had no authority to list the property. The property is not for sale. My friend inherited, her sister did not inherit.

My friend paid the real estate agent back for this sum because to maintain friendly business relationships in this toney little community was important to her.

So yeah, pay the $350.

I'm surprised the realtor didn't ask for proof that the person wanting to sell the place actually owned the place. How is that even possible?!

I have never been asked for proof by a listing agent.

[Omy]

If the person trying to sell was not on the deed, a competent agent would ask for additional documentation (will, trust, poa, letters of administration, death certificate,  etc). If the person was one of several people on the deed, the agent would need to get the listing agreement signed by all parties - or documents explaining why all parties are not accounted for.

Without more info, it sounds like the listing agent spent a lot of money without having a valid listing agreement. I'm surprised the actual owner agreed to reimburse.

[iris lily]

You think $350 is bad? My friend has a family estate that goes back several hundred years in Virginia. Her mother died. Her sister listed the property and a real estate agent took extensive film footage as well as photographs to the tune of – I think she said $30,000. There was other work done by the agent.

That seems an astronomical amount of money, but whatever she said it was an astronomical figure.

But the problem was this: the sister had no authority to list the property. The property is not for sale. My friend inherited, her sister did not inherit.

My friend paid the real estate agent back for this sum because to maintain friendly business relationships in this toney little community was important to her.

So yeah, pay the $350.

I'm surprised the realtor didn't ask for proof that the person wanting to sell the place actually owned the place. How is that even possible?!

This is a small community of olde money and upper wealth. The real estate agent most likely knew the doyenne of the estate had just died. She might even have known the sibling who listed the estate. Would not  occur to her that this particular sibling had no authority over the estate.

[iris lily]

If the person trying to sell was not on the deed, a competent agent would ask for additional documentation (will, trust, poa, letters of administration, death certificate,  etc). If the person was one of several people on the deed, the agent would need to get the listing agreement signed by all parties - or documents explaining why all parties are not accounted for.

Without more info, it sounds like the listing agent spent a lot of money without having a valid listing agreement. I'm surprised the actual owner agreed to reimburse.

I was surprised the sibling did not know she didn’t inherit because this property has been entailed in a very particular inheritance pattern  for decades (Hundreds? Of years?)

There is no real bad blood between the sibs, from what I can tell.This was just a misunderstanding with big consequences.