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As I said, it's just about semantics, but that is doesn't usually happen. When a contract is executed, it is preceived that the buyer is ready (as they put a date for anticipated closing), willing (they didn't sign under duress), and able (they provided a pre-approval letter from a reputable lender). So, at execution, I would say all three of these things are true at one time. No one wants to execute a contract if the buyer isn't "able", but the assumption is there from information given.
Have agents collected commissions when contract fall through? Yes, many times. There is a lot of case studies on it... but it's not the norm. It happens more often when the seller backs out, and not the buyer.
I can certainly see it when the seller backs out. Makes sense to me. Just seems a bit crazy if the deal falls through because of the buyer that a commission would be paid. In theory a commission could be paid multiple times by the seller in that case without ever selling the house.
And for the record I think any buyer who signs an agreement saying the agent could get paid without the house actually selling should have their head examined unless it is some kind of flat fee type arrangement compensating them for their time.
And for the record I think any buyer who signs an agreement saying the agent could get paid without the house actually selling should have their head examined unless it is some kind of flat fee type arrangement compensating them for their time.
Regardless of commission/compensation model, I can easily imagine myriad scenarios wherein the parties may quite fairly agree to compensation for agent services when a property doesn't sell.
Ready, willing and able is the key. Just because some idiot at the "no-tell" lending company says they are "able" doesn't always mean that they are. Your home had some issues....and the timing was an issue. What does it say in your listing agreement when the buyer defaults is one thing. Your agreeement with your agent is another issue. I have never heard of the listing agent retaining an earnest money deposit. 9 times out of 10, it is signed back to the buyer. Learn from this, pay no attention to what she wants and move on. Life is too short for unnecessary haggling.
My thought is to wonder why the agent put up with you and not drop you as a client.
My next thought is why you put up with an agent who you considered lazy.
Life is too short.
I don't have an excuse for putting up with the agent. I admitted earlier in the post that this is my fault for keeping her on. However, each time I had the inkling to let her go a contract would come up and I didn't want to let her go in the middle of a pending sale.
Quote:
Originally Posted by Rakin
Thoughts ?
My thought is to wonder why the agent put up with you and not drop you as a client.
My next thought is why you put up with an agent who you considered lazy.
As I said, it's just about semantics, but that is doesn't usually happen. When a contract is executed, it is preceived that the buyer is ready (as they put a date for anticipated closing), willing (they didn't sign under duress), and able (they provided a pre-approval letter from a reputable lender). So, at execution, I would say all three of these things are true at one time. No one wants to execute a contract if the buyer isn't "able", but the assumption is there from information given.
Have agents collected commissions when contract fall through? Yes, many times. There is a lot of case studies on it... but it's not the norm. It happens more often when the seller backs out, and not the buyer.
Ready willing and able. Means ready to perform willing to perform and able to perform. It doesn't mean ready, willing and able to execute a contract. Anybody can execute a contract. all you need is a pen and the ability to sign on the dotted line. When given the opportunity to perform the buyer refused, so he was not willing.
Have agents collected commissions when contract fall through? Yes, many times. There is a lot of case studies on it... but it's not the norm. It happens more often when the seller backs out, and not the buyer.
We are not talking about when the seller backs out. We are talking when the buyer backs out. Can you site these case studies that detail a buyer who refuses to perform his end of the contract as "ready, willing and able"? That is of course all that is relevant here.
Wowzers! What a clusterfu** LOL. I don't mean to laugh AT you but wow. Indeed what DO you do in a situation like this? Ohhh heck no, she shouldn't get a dime. Sorry you are going through this.
Thanks Andrea. However, it ends I will chalk it up to a lesson learned.
Quote:
Originally Posted by fallingwater
I am not an agent but in all the homes I have sold I never heard of an agent asking for the earnest deposit. That seems pretty strange.
It seems fishy to me too. Also all she has done so far is send me an email or text. Seems she seems foul about it also or she would have called.
Quote:
Originally Posted by LynnKK
Ready, willing and able is the key. Just because some idiot at the "no-tell" lending company says they are "able" doesn't always mean that they are. Your home had some issues....and the timing was an issue. What does it say in your listing agreement when the buyer defaults is one thing. Your agreeement with your agent is another issue. I have never heard of the listing agent retaining an earnest money deposit. 9 times out of 10, it is signed back to the buyer. Learn from this, pay no attention to what she wants and move on. Life is too short for unnecessary haggling.
I agree I shouldn't be stressing over this. I need to make a decision and move on.
That is correct or at least this is what is told to me by the agent. In other words, buyer has second thoughts.
I can't imagine any contract where a buyer could back out for that reason so it seems like a no brainer that the seller would get the earnest money for terminating over that. Your agent would be correct in fighting for the earnest money for you.
What you do depends on what you agreed to. I have seen some agents get 100% of earnest monies because that is what they wrote in the contract. The flip side is that is gets deducted from the total commission earned so when the next deal comes along, the seller pays the commission-the earnest money payment, so it all works out in the end...as long as the house sells.
What you do is totally up to you if your contract doesn't tell you what happens to that money.
Quote:
Originally Posted by atlcharm
To answer your question about the earnest money...it is my agent fighting for the money not me. She is the one initiating the fight. I had no idea originally that earnest money was due me.
So here is where I start to have an issue with your statement that your agent has done nothing for you. It seems like a no brainer that the earnest money is due you, your agent initiated a fight on your behalf, and yet they have done nothing besides send you an email or two?
So here is where I start to have an issue with your statement that your agent has done nothing for you. It seems like a no brainer that the earnest money is due you, your agent initiated a fight on your behalf, and yet they have done nothing besides send you an email or two?
Gotcha on that point.
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