We had a builder that sold his company (A) to another company (B). The new builder (B) refuses to pay the realtors involved. Company (B) says they never knew realtors were involved. Although there was a signed contract between us and Company (A).
2007-12-05 12:08:03 · 3 answers · asked by A-one 1 in Business & Finance ➔ Renting & Real Estate
You are not on the hook for the seller's agent's commission, but you could be for the buyer agent assuming you are the buyer and you had a Buyer's agency contract with your agent. The language of that contract usually states you, the buyer, owe the commission but within the purchase contract it will be presented to the seller for payment .
So, depending on the wording of your agency contract and the wording of your purchase contract, you may or may not be responsible for payment.
2007-12-05 12:31:28 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Absolutely not. You signed no contract with the realtors. In order for them to get their commission, they will have to pursue the original owners - because title did change hands. Company B bought Company A, meaning title of all their properties became Company B's. Therefor a sale already did take place, now all you are doing is purchasing from Company B. Either way, you are the buyer, and you have no responsibility to the Realtors unless you choose to.
The only way you could be responsible is if you signed a contract with a Realtor, or agreed to pay a commission at closing.
2007-12-05 12:16:04 · answer #2 · answered by Christopher B 6 · 0⤊ 0⤋
The seller always pays the commission. Company A must pay the commission. It would be a stretch that Company B would not know that an agent was involved but it's immaterial as they don't owe the agent anything.
Maybe I didn't read it correctly. If Company A was sold to Company B, the former owners of Company A owe the commission to the agent.
2007-12-05 12:13:07 · answer #3 · answered by Bostonian In MO 7 · 0⤊ 0⤋