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I received an offer to purchase land. We excepted terms and agreed on a cash amount that included closing fees for the buyer to receive that we refuse to pay, but that the buyers agent & sellers agent agreed to pay ($900).
However on the offer to purchase & Contract it states that the seller will pay $900 closing costs. My realtor said they had to keep the $900 in the offer to purchase. But I let realtor know I will not sign this without an addendum stating what was agreed upon in regards to who would pay the $900. My realtor was highly insulted that I want this in writing, and hoped that the other realtor wouldn't be as equally insulted. What's wrong with me wanting to protect my interests? Now my realtor isn't returning my calls...
My guess is that the $900 bucks is somehow a bigger chunk out of what is going to the agents than what it would have been out of your proceeds... Funny how that kind of brings out the unpleasantness in people.
If it ain't in writing..........you know the drill. You're just covering your tail, rightfully so.
It would have to be explained on the final Hud1 sheet as to what side is paying what. There's a seller's side and a buyer's side. There is no agent's side. It would have to be listed on your side that the $900 is being provided by the seller. My best advice would be an addendum signed by both agents that the final commission is reduced by the figure in question.
Oh, BS. Big time. It should have said on the addendum that the listing and selling agent reduce their commissions such and such amount (450 each) and that the seller will pay $900 of the buyers closing costs. OR..if they will not do that, then you have a revised commission agreement with the listing agent reducing the commission by $900 BEFORE you sign the contract and let the agents fight it out.
Highly insulted? Sometimes I am amazed by how some Realtors® will shoot themselves in the foot.
I received an offer to purchase land. We excepted terms and agreed on a cash amount that included closing fees for the buyer to receive that we refuse to pay, but that the buyers agent & sellers agent agreed to pay ($900).
However on the offer to purchase & Contract it states that the seller will pay $900 closing costs. My realtor said they had to keep the $900 in the offer to purchase. But I let realtor know I will not sign this without an addendum stating what was agreed upon in regards to who would pay the $900. My realtor was highly insulted that I want this in writing, and hoped that the other realtor wouldn't be as equally insulted. What's wrong with me wanting to protect my interests? Now my realtor isn't returning my calls...
In the state of Missouri real estate contracts are governed by the statutes of frauds that require all terms and conditions to be in writing. Verbal agreements are worthless and probably the singularly most common reason for LITIGATION.
Tell you agent to write up a counter offer (forget the adendum), including the agreed upon terms and conditions. Tell her if she does not do this you will report her actions to the state real estate licensing board. She has a fiduciary responsibility to obey your wishes, if she does not she is in strict violation of her agency with you and you can sue her butt (and she can lose her license).
My guess is that the $900 bucks is somehow a bigger chunk out of what is going to the agents than what it would have been out of your proceeds... Funny how that kind of brings out the unpleasantness in people.
Quote:
Originally Posted by Bazzwell
If it ain't in writing..........you know the drill. You're just covering your tail, rightfully so.
It would have to be explained on the final Hud1 sheet as to what side is paying what. There's a seller's side and a buyer's side. There is no agent's side. It would have to be listed on your side that the $900 is being provided by the seller. My best advice would be an addendum signed by both agents that the final commission is reduced by the figure in question.
Quote:
Originally Posted by Rakin
Keep in mind the agents are not a party to the contract between the buyer & seller.
Any concession from the agents needs to be outside the contract in the listing agreement or some other promissory note / handshake / agreement.
Kudos to three fellers with a clue!
Right, and very fundamental to the transaction. Commission and concessions are between principal and agent, negotiated outside the contract, which is between principal and principal.
Of course, I am answering from my local perspective, North Carolina.
One in fifty chance that it is applicable to the OP's home state, although I am heartened by his mention of "Offer to Purchase and Contract."
In North Carolina, we don't mention commission, concession, or splits in the Offer/Contract.
Right, and very fundamental to the transaction. Commission and concessions are between principal and agent, negotiated outside the contract, which is between principal and principal.
Of course, I am answering from my local perspective, North Carolina.
One in fifty chance that it is applicable to the OP's home state, although I am heartened by his mention of "Offer to Purchase and Contract."
In North Carolina, we don't mention commission, concession, or splits in the Offer/Contract.
In our great state, how would you've handled this situation differently that has me at odds with my agent? BTW, It is not so much an addendom as it is a promisory note I drew up. I felt it needed to be addressed before the offer was signed. But now I worry that I may loose the buyer, as everything hangs in limbo.
Here is the deal: Agents know they get bupkus if the land does not sell. You still have the land. I have no idea what portion of the total value of the land $900 represents, but my gut says "not much". On the other hand the $900 bucks almost certainly represents a bigger slice of what the agents were hoping to make.
I am not going to judge, and I have no idea how much this land cost you originally or over the years, but somehow I think that if the offer was just flat out too low maybe you should have waited for another buyer. If this was the best deal all around for everybody I would have very politely inquired as to agents' preferred method of eliminating any misunderstanding about the impact that their offer to pay closing might have on the overall agreement to their compensation... Not saying getting it is writing is not smart, just something about the way you stated " I will not sign this without an addendum" suggests that maybe they sensed a little lack of love???
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Now my realtor isn't returning my calls...
At odds with agent
