Posted by JohnBoy on October 22, 2003 at 22:07:08:
Depends on the contract the seller signed with their agent.
The seller hired the agent to sell the home. The agent did their job and brought the seller a buyer. The seller then decides not to sell, for whatever the reason, and breaches their contract with the agent and with the buyer. The seller should be held accountable for paying the commission plus any costs and damages to the buyer for breaching the contracts.
Now if the BUYER flaked out for whatever reason, then the seller would not owe a commission. They didn’t bring a valid buyer to close on the sale. But in this case, it’s the SELLER, who hired the agent to do a job, which the agent did, and where the seller agreed to sell and enter into a sale agreement with the buyer, and now the seller flakes out and refuses to sell. The seller owes the commission plus costs and damages to the buyer for breach of contract.
The only exception would be IF the listing agreement gave the seller the right to back out of the sale after entering into a sale agreement with a buyer and stating no commission would be due. I doubt the listing agreement has any wording to that effect. So the agent is owed the commission since the agent did their job they were hired to do. They brought the buyer together with the seller and the seller signed a purchase agreement with the buyer. It’s the SELLER who has flaked out and refuses to honor the contract, not the buyer.
buyer asking too many things for refund - Posted by gregory
Posted by gregory on October 22, 2003 at 14:25:12:
Friend of mine has backed out of a contract recently and buyer’s agent agreed to settle the issue kindly but they came back with a ton of things for him to reimburse…
Buyer notified management that he will be moving out
so he had to find another place to stay.
Looks like their “settle the issue kindly” is more like an attempt to make money off this event.
Did they provide proof of such expenses?
Where did the title work and survey come from?
As far as I remember, you pay those at closing included in the closing fee.
I would just pay the appraisal and at most the inspection, and would tell them it’s all I can do.
If they really do get upset about it they might consult an attorney only to found out that it’s gonna be a really hard long journey to get anything more out of you.
If your friend doesn’t pay anything more such as the realtor’s commission, what’s the realtor gonna do about it? The chances of him sueing for his commission is next to zip. In most cases, like 99.999% of the time, he’d rather have his client get the deposit back from seller ASAP and move on to finding another house…
Posted by Ed Copp (OH) on October 22, 2003 at 18:40:32:
is completely governed by the terms of the contract. Nothing else matters.
Friends of friends are not qualified to comment unless they are lawyers, and have been retained to do so. We do not have sufficient information to decide which expenses are reasonable. We did not see the contract, and we are not party to it. On the surface I would say that all the expenses mentioned seem to be reasonable.
As for the sales commission issue. Brokers (and agents) get paid for bringing buyer and seller together, that is when the commission is earned. It seems that that condition was met in this case.
The buyer asking too many things may not be an issue. The buyer may not be asking, but demanding the things that are agreed to in the contract. I have no way to know for sure. It sounds like the post is based on an opinion that is at least second hand information. The contract as written is what needs to prevail.
Also, why would the real estate agent get a commision on a home that didn’t sell? Do you get paid if you don’t work? If no one buys your home do you still make money? Is there something in writing that says, the agent still get’s his fee no matter what?
Re: buyer asking too many things for refund - Posted by michaela-ATL
Posted by michaela-ATL on October 22, 2003 at 16:26:19:
I’m not a lawyer, but I would think, if the friend backed out close to closing and there were no conditions left unmet, then these are pretty reasonable expenses, incurred by the buyer. The commission, well, that might be negotiable, but the other stuff looks legit to me.
He’s saying there won’t be a closing. Nonetheless, someone has to pay for the work that was completed. Personally, I think it should be the seller who backed out of the deal after these expenses were incured.
Posted by Anne_ND on October 22, 2003 at 21:48:51:
the standard realtor’s agreement where I am says that if the realtor brings you a full price buyer, you have to pay them even if you don’t take the offer. Further, if you agree to the deal and then back out of the deal (NOT using a weasel clause, but because you changed your mind), then again, you owe the realtor the commission. They did do their work- the work was to get you the offer.
Re: buyer asking too many things for refund - Posted by michaela-ATL
Posted by michaela-ATL on October 22, 2003 at 18:17:43:
The way I understand the post is, that the seller/his friend, backed out of a contract, after everything was set. He’s in ‘breach of contract’ and is leaving himself open ofr a lawsuit, which he might lose. Paying the buyer’s cost would be an inexpensive way to get out of this.
Posted by Ed Copp (OH) on October 22, 2003 at 20:30:27:
about when the payment is collected, BUT the fact remains, the commission is owed when the buyer and the seller are brought together. Collecting may in deed be another story. It really depends on the character of the people involved. Some people do not pay the bills that they owe, and some do. Some people feel like they can just change their mind and just let the broker eat the deal. Some brokers and agents disagree. I guess that is what makes the world go around.