[grannynancy]

What does this mean?

That closing is not a prerequisite for the agent to earn his commission?

If an agent brings a buyer and the buyer fails to close on the sale of the house, is the seller obligated to pay a commission to the agent? Surely not! But it is a confusing clause.

[dmccauley]

No. Be very careful if your given a contract to purchase. I was given a contract which gave me 28 days from the date of contract til closing. What I wasn't aware of was that the realtor did not check the box about obtaining a mortgage commitment. (no date was entered) by not checking this box it gave the buyer 30 days to obtain the mortgage commitment. The night before my closing was to take place I received a call there was a problem. I was packed up, moving truck in the yard etc. To make a long story short we couldn't close and the sellers deposit was returned. I had absolutely no recourse. I was out tons of money. Make sure those boxes have dates in them (there is one for inspections and appraisals) I have since learned that the clause you mentioned is very common in Florida. If you were to back out for reasons other then mortgage or inspections of the sale of the home the realtor does have a right to ask for his/her commission.

[Shores9]

Your listing agreement with the broker is what governs your obligations to that broker and he or she to you!

It is true “A closing is not a prerequisite for the agent to earn his (or her) commission”

Common Florida (and other states) listing agreements have a compensation clause that… after certain actions by the broker/agent trigger a seller’s obligation to pay an agreed sum of money or consideration. Generally it is only after the agent performs his or her obligation to (in short) bring a buyer ready willing and able to close, and in most cases actually close the sale.

If a broker fulfills the[listing] contract but you renege or breach the contract then they could have claim to you. If the broker brings a buyer who has fulfilled all the conditions of an accepted purchase contract but reneges on or otherwise walks away from the closing then the broker may have claim to you or monies held [such as down payment monies]. It all depends on the “Listing Agreement”

To dmccauley’s post - As for the common “purchase contracts” used by an agent – they too have several clauses – most are there to address the various processes that occur during the average transaction. And most are there to protect the public and parties to a transaction. The fact that, if described correctly, your agent failed to check a box or fill in a blank on a plain language contract shows a true lack of proficiency.

Unfortunately being a Realtor is a low qualification profession and there are all too many Realtor’s who need to be serving up burgers in a drive thru not writing or reviewing contracts, representing sellers or buyers, or marketing properties.

Get a new agent quick!

[Retiredcoach]

This might be one more reason to spend the extra money for your own attorney to inspect the papers prior to you signing anything. Times are tough for selling real estate, and who is really there to protect you? Thank you for post.... it is an eyeopener for anyone thinking of buying or selling a property.

[grannynancy]

This was coded in verbiage in the standard Florida real estate sales contract form which the realtor used.

I talked to the real estate agent who explained that is was for breach of contract on part of the seller should an accepted offer by a qualfied buyer be backed out of by the seller.

[Retiredcoach]

Originally Posted by grannynancy

This was coded in verbiage in the standard Florida real estate sales contract form which the realtor used.

I talked to the real estate agent who explained that is was for breach of contract on part of the seller should an accepted offer by a qualfied buyer be backed out of by the seller.

I just think that this small addition to the contract with the broker could open the seller to a unforeseeable litigation if the wording is not precise. This language can best be interpreted by a qualified attorney. I become skeptical when a broker writes the contract that I will be forced to abide without any inherent protections for the seller and/or buyer.

[Shores9]

Listing Agreement: a fairly standardized form contract between the broker and a seller to list the seller’s house - Not to be confused with a purchase contract used when a purchase offer is made on your home.

If you are not comfortable or do not understand a contract even if it is in “Plain English” format then you by all means consult an attorney.

Your Listing Agreement (or contract) with a broker is based on performance or lack thereof and consideration or payment for a specified service.

You hire a broker via this agreement/contract to market, negotiate, and coordinate the sale and closing process of your home. When the broker delivers to you a buyer and you agree on the terms and conditions of sale so long as the buyer upholds his or her end of the deal you are obligated to do the same.

If you don’t you could be sued for performance or breach of contract. Actually two contracts the purchase contract with the potential buyer and the listing agreement/contract with the listing broker.

I don’t know what you kind of experience you have in business if any - but even if you contracted a lawn service to work on your house or an accountant to prepare your taxes… when they complete work agreed upon they expect to get paid and you have an obligation to do so. You can’t just decide not to pay and expect there will not be legal recourse.

I’m sure if you had a job and worked 40 hours you would expect to get paid for your work (all 40 hours of it) or if you bought a life insurance on your spouse and one day he (or she) kicked the bucket you would expect the insurance company to pay.

Unless you feel Realtors are worthless scum not created equally with the rest of us (and in some cases this might be true) than if they do their job and bring you a buyer ready willing and able to close on terms that you have agreed to then they should get paid for their work.

I find it had for someone to not understand this concept. For that matter forget I even responded to this rubbish

[dmccauley]

[quote=Shores9;7172136]You hire a broker via this agreement/contract to market, negotiate, and coordinate the sale and closing process of your home. When the broker delivers to you a buyer and you agree on the terms and conditions of sale so long as the buyer upholds his or her end of the deal you are obligated to do the same. able to close on terms that you have agreed to then they should get paid for their work./quote]


And who or what protects the sellers when all their obligations have been met? The seller proceeds with the transaction trusting their realtor and in the end has no recourse when the agent screwed up royally. There is a fine line when in comes to a dual agent. Who's side is he/she on?

[dmccauley]

Originally Posted by Retiredcoach

This might be one more reason to spend the extra money for your own attorney to inspect the papers prior to you signing anything. Times are tough for selling real estate, and who is really there to protect you? Thank you for post.... it is an eyeopener for anyone thinking of buying or selling a property.

I wanted to hire an attorney. I am use to it being from NJ, but in Florida they do not require you to. My realtor advised me to save my money and just use the buyers attorney. Stupid me I would have saved money in the long run.

[grannynancy]

My expectation is if the agent brings me a qualified buyer who actually closes, I am obligated to pay. If they do not close and it is through no fault of my own, a commission is not due.

If they don't sell the house by the end of the contract period and the house is NOT re-listed and I procure the buyer [and, no, not someone who wanted to wait it out until the contract expired to save the commission - i.e., not someone to whom the realtor has shown the house] then a commission would not be due.

I fully appreciate the nature of commission sales as my husband was in commission sales for years and he got screwed by companies who went directly to his bigger customers after he developed them, and then "made a deal"

I was simply asking about a clause that jumped out of a standard contract and I have my answer now.