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Old 08-02-2016, 07:03 AM
 
Location: Just south of Denver since 1989
11,815 posts, read 34,300,444 times
Reputation: 8935

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I am involved in a challenge that would have never happened if the buyers rep had seen the sellers figures prior to the closing.

1. Seller exits chapter 7 bk and the first deal fails due to property needing a new roof.
2. seller gives insurance proceeds to roofer and promises to pay the rest at closing.
3. seller enters a new deal and sends a copy of the roof warranty and the invoice showing amount paid and what was still owed to the buyers agent, an hour before closing.
4. Sellers agent sets closing for 3:30 pm. Only the seller had signed at 10 am.
5. Buyers agent sees sellers agent after closing. while talking in the hall, title company closes for the night.
6. Buyers agent notices that there is no payment for the roof on the sellers settlement statement and calls the title company at night to let them know about the mistake.
7. Roofer files a mechanics lien against the property.
8. Seller is nowhere to be found and title says the wire was claimed and the account is now closed.
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Old 08-02-2016, 07:15 AM
Status: "Made the Retirement Run in under 12 parsecs!!!" (set 5 days ago)
 
Location: Cary, NC
43,081 posts, read 76,631,641 times
Reputation: 45397
Quote:
Originally Posted by 2bindenver View Post
I am involved in a challenge that would have never happened if the buyers rep had seen the sellers figures prior to the closing.

1. Seller exits chapter 7 bk and the first deal fails due to property needing a new roof.
2. seller gives insurance proceeds to roofer and promises to pay the rest at closing.
3. seller enters a new deal and sends a copy of the roof warranty and the invoice showing amount paid and what was still owed to the buyers agent, an hour before closing.
4. Sellers agent sets closing for 3:30 pm. Only the seller had signed at 10 am.
5. Buyers agent sees sellers agent after closing. while talking in the hall, title company closes for the night.
6. Buyers agent notices that there is no payment for the roof on the sellers settlement statement and calls the title company at night to let them know about the mistake.
7. Roofer files a mechanics lien against the property.
8. Seller is nowhere to be found and title says the wire was claimed and the account is now closed.
Wow.
Every title company snafu I read reminds me:
I REALLY like using a local closing attorney who has a fiduciary duty to my buyer and a business worth hundreds of thousands of dollars or more to lose if he/she allows something like this to happen.
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Old 08-02-2016, 12:30 PM
 
Location: Needham, MA
8,527 posts, read 13,923,140 times
Reputation: 7908
Quote:
Originally Posted by 2bindenver View Post
I am involved in a challenge that would have never happened if the buyers rep had seen the sellers figures prior to the closing.

1. Seller exits chapter 7 bk and the first deal fails due to property needing a new roof.
2. seller gives insurance proceeds to roofer and promises to pay the rest at closing.
3. seller enters a new deal and sends a copy of the roof warranty and the invoice showing amount paid and what was still owed to the buyers agent, an hour before closing.
4. Sellers agent sets closing for 3:30 pm. Only the seller had signed at 10 am.
5. Buyers agent sees sellers agent after closing. while talking in the hall, title company closes for the night.
6. Buyers agent notices that there is no payment for the roof on the sellers settlement statement and calls the title company at night to let them know about the mistake.
7. Roofer files a mechanics lien against the property.
8. Seller is nowhere to be found and title says the wire was claimed and the account is now closed.
I was talking to a client the other day who bought about a year ago. She's having some issues with her RE tax bill (long story) and in researching the issue found out that at closing she paid $11,000 in back taxes and penalties owed by the developer because her own attorney put it on the wrong side of the HUD. It was a last minute change to the document too.
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Old 08-02-2016, 02:41 PM
 
Location: northern va
1,736 posts, read 2,877,827 times
Reputation: 1688
Quote:
Originally Posted by 2bindenver View Post
I am involved in a challenge that would have never happened if the buyers rep had seen the sellers figures prior to the closing.
ouch. I had a similar situation recently where the title company hadn't collected on the seller side for the HOA resale package. Luckily I mentioned it to the processor and she added it before signing

Hopefully with the recent news about opening up the CD things like this will go away
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Old 08-02-2016, 04:34 PM
 
Location: Fort Lauderdale, Florida
11,936 posts, read 13,018,815 times
Reputation: 27076
Quote:
Originally Posted by Ducksinlake View Post
We dont have commission agreement for buyer's agent with lisitng agent or seller. Do we? In FL?
What part of Florida? In South Florida, the agents commission is stated on the information page.

The local board will have the information where and when the edit was made.

Quote:
Originally Posted by Ducksinlake View Post
No I did not read it wrong, Actually I printed it out at the day when I place offer and I printed it out again when we ordered the appraisal, then I find out the commission has been changed. I just curious what happens if I had not printed it out.
There should be a time and a date on the lower, right side of the print out.

I had a similar situation with a rental.

My broker called the LA broker and the LA ate the difference.
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Old 05-02-2017, 05:41 PM
 
1 posts, read 766 times
Reputation: 10
In California what if the listing agreement states 3%/3% but when escrow closes you notice the selling agent received 3.5% and buyer's agent received 2.5% can the agent negotiate the commision with out notifying the Seller?
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Old 05-02-2017, 06:37 PM
 
Location: northern va
1,736 posts, read 2,877,827 times
Reputation: 1688
Quote:
Originally Posted by Maria1021 View Post
In California what if the listing agreement states 3%/3% but when escrow closes you notice the selling agent received 3.5% and buyer's agent received 2.5% can the agent negotiate the commision with out notifying the Seller?
Assuming you are the seller?
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Old 05-09-2017, 03:39 PM
 
Location: El Dorado Hills, CA
3,720 posts, read 9,962,032 times
Reputation: 3927
Quote:
Originally Posted by Maria1021 View Post
In California what if the listing agreement states 3%/3% but when escrow closes you notice the selling agent received 3.5% and buyer's agent received 2.5% can the agent negotiate the commision with out notifying the Seller?
No, it's a contract between the listing agent and the seller.
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Old 05-10-2017, 06:56 AM
 
Location: Georgia
4,578 posts, read 5,628,491 times
Reputation: 15968
Quote:
Originally Posted by NinaN View Post
No, it's a contract between the listing agent and the seller.
In Georgia, the listing agreement spells out the commission, how much is being retained by the listing agent, and how much is being shared with the buyers agent. To split it 3.5/2.5 if a listing agreement says 3/3 is going against the terms of the listing agreement, and if the listing agent had told the seller that he would be sharing 3% and only offered 2.5%, it could have negatively impacted the pool of agents willing to show the home.

If you have proof that the listing agreement was for a 3/3 split, then it's time to talk to the broker. But if you signed a commission agreement or reviewed the closing disclosure prior to closing and said nothing, it's going to be a very tough call to the broker. The time to effectively argue that is before the closing.

There is an agent I know that consistently undercuts other agents to get listings by reducing her commission, but then passes the reduction along to the buyers agent, retaining the majority of the commission for herself. So she cut the commission -- but only for the buyer, not for herself. Tactics like that don't encourage other agents to flock to your listings.
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Old 05-28-2019, 12:43 PM
 
1 posts, read 337 times
Reputation: 10
How important is the listing agreement’s listing of commissions and split? It is a signed contract, yes? We all signed a contract for a certain percentage and split, but not the LA says she wants a higher (flat) fee. Isn’t what is in the contract (that she wrote) the more influential document!
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