broker's commission (agent, contract, closing, listing)

[jabrondo18]

In NYS, is a seller's broker entitled to his commission when a sales contract is entered into by the seller and the buyer, but the closing doesn't happen b/c the commitment letter to the purchaser is cancelled b/c the bank issuing it went out of business?

[bashep]

I am not sure how it works in NYS. But in Colorado when you go into an agreement/contract w/ an agent there is a date that is specified when it is expired. Then after that normally if there as a property that you were interested in and found during in contract w/ them. They are owed the commission for so many days or months after the contract has expired. Does that help or make sense?

[DavePautsch]

As I understood your question, the deal did NOT close (you didn't get the house sold), right?

If that's the case, you should not owe them a commission. If you canceled the contract with your listing agent while there was a ready/willing/able buyer under contract, or if YOU killed the purchase agreement...you might be liable for a commission but (again, assuming that I understood your question correctly) not in this case.

[c21boquetebocasgold]

Originally Posted by jabrondo18

In NYS, is a seller's broker entitled to his commission when a sales contract is entered into by the seller and the buyer, but the closing doesn't happen b/c the commitment letter to the purchaser is cancelled b/c the bank issuing it went out of business?

If I understand correctly the only reason why this didn't close was because the lender being used went out of business, correct? Like Dave said, based upon the limited information given, if the sale did NOT proceed through no fault of yours as the seller, then I don't see how the listing agent would be owed commissions by you. (Though I am 'assuming' you were the seller in this instance, as I believe NY is an attorney state and each state has different RE laws, so don't know if a 'buyer' would be obligated to pay seller agent commissions if they defaulted)

I guess my question, for clarification purposes, is why wasn't closing just pushed back to allow the buyer to obtain new financing through a different bank? Not like it was their fault either that the sale fell through because their bank went out of business, especially nowadays when banks are shutting down all the time.