2007-04-19 16:34:41 · 7 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
the property was owned by a family trust with three bene's- two wanting to sell and one wanting to buy the other two out. The trustee did not acknowledge the one's wish, listed the property and accepted another offer. The 1 bene filed a lis pendes to freeze the sale during litigation. The buyers decided not to wait around & cancelled the transaction. Thier deposit was returned and buyer signed a "Mutual Cancellation Agreement". Now the 1 bene has applied for a refi loan to buy the other 2/3 interest and is about to close ecrow.
NOW HERE IS THE PART IN QUESTION: Even though the buyers agent did not pursue for a commission, the trustee and the listing broker are demanding 5% for the cancelled sale and 3.75% for the buy out, even though the listing was cancelled so the buy out could be done. So why does the broker feel he is still owed full commission for a sale that didn't happen, & partial commission for one that he didn't have anything to do with?
2007-04-19 22:26:57 · update #1
the property was owned by a family trust with three bene's- two wanting to sell and one wanting to buy the other two out. The trustee did not acknowledge the one's wish, listed the property and accepted another offer. The 1 bene filed a lis pendes to freeze the sale during litigation. The buyers decided not to wait around & cancelled the transaction. Thier deposit was returned and buyer signed a "Mutual Cancellation Agreement". Now the 1 bene has applied for a refi loan to buy the other 2/3 interest and is about to close ecrow.
NOW HERE IS THE PART IN QUESTION: Even though the buyers agent did not pursue for a commission, the trustee and the listing broker are demanding 5% for the cancelled sale and 3.75% for the buy out, even though the listing was cancelled before the buy out could be done. So why does the broker feel he is still owed full commission for a sale that didn't happen, & partial commission for one that he didn't have anything to do with?
2007-04-19 22:32:17 · update #2
Depending on the language of the contract, most likley not. No contracts I have seen have any clause that the realtor gets paid in the event the home does not sell. If the home did not sell, then the realtor can not collect a commission. Sadly, fallout is part of this business, I am in financing, and some deals will get all the way to the table and still something goes wrong and it doesn't close. Never count on your commissions until you know a closing has happened, and make sure you have enough in your pipeline to compensate for those deals that will never happen for you. Good Luck!!
2007-04-23 05:08:26 · answer #1 · answered by novastarbanker 3 · 0⤊ 0⤋
Sandra,
In just every circumstance all payments are made to the perspective parties at the full close of sale. These are itemized in the final HUD statement. I have bought many properties and have had to walk away from many as well, and I can't think of one instance where a deal didn't go through and the agent still got paid.
I am curious to know a bit more about your situation. If you are thinking of backing out of the deal for whatever circumstances and are concerned about your Realtor not getting paid, don't think twice. You can always find another home, or negotiate a better offer on another piece of property. Remember that once the deal is done, you are the only one held responsible for making the mortgage payments, I doubt your Realtor will help you make your payments if you fall behind. If you have backed out of a deal and your Realtor is forcing you, or telling you that you need to pay them for the deal that fell through, I suggest you look them straight in the eye and use the Donald Trump method.....YOU'RE FIRED. And lastly, if you are the Realtor, and you are asking this question, I suggest you take some extra time to review your study materials, or possibly find a mentor to teach the rope.
I hope you find your way, and that things go well for you.
Happy Hunting
2007-04-19 19:19:01 · answer #2 · answered by SNW 2 · 0⤊ 0⤋
No, unless the broker's client somehow blew the deal.
2007-04-19 16:37:49 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Nope. Theres no money to give the broker if it doesn't go through escrow.
2007-04-19 16:43:46 · answer #4 · answered by britni7887 1 · 0⤊ 0⤋
Only win there is a complete sale.
2007-04-19 16:38:23 · answer #5 · answered by ♥♥The Queen Has Spoken♥♥ 7 · 0⤊ 0⤋
Not usually. They might if you did something on purpose to make it fall through.
2007-04-19 16:38:22 · answer #6 · answered by Brian G 6 · 0⤊ 0⤋
Depends on how the contract was written.
2007-04-19 16:37:07 · answer #7 · answered by ValleyR 7 · 0⤊ 0⤋