My Agent Agreed to Lower Commission But Did Not Notify Escrow. (commissions, agreement)

[toad pad green]

The buyer asked for a 3 month extension of escrow. I told my agent: I did not want to continue because I am losing $21K a month. My agent and the seller’s agent offered to lower there commissions by 7K per month of escrow each. I agreed and signed a 3 month extension.

I called the escrow office to check the verbiage in the commission reduction agreement. They did not have it. I called my agent to ask about it. He said that he was not going to lower his commission because I did not let the buyer start managing the apartments which would have eliminated the loss. I am looking for my copy of the agreement.

Is my agent obligated to forward all relevant agreements to escrow?

What can I do?

The deal is in AZ

[Captain Bill]

Originally Posted by toad pad green

The buyer asked for a 3 month extension of escrow. I told my agent: I did not want to continue because I am losing $21K a month. My agent and the seller’s agent offered to lower there commissions by 7K per month of escrow each. I agreed and signed a 3 month extension.

I called the escrow office to check the verbiage in the commission reduction agreement. They did not have it. I called my agent to ask about it. He said that he was not going to lower his commission because I did not let the buyer start managing the apartments which would have eliminated the loss. I am looking for my copy of the agreement.

Is my agent obligated to forward all relevant agreements to escrow?

What can I do?

The deal is in AZ

It sounds like there were two parts to the agreement; one part that you were to honor, having to do with managing the apartments in order to eliminate the loss. If one party breaches the agreement, then the other party does not have to perform their part of the agreement.

Therefore, if there was a breach then the agent would not have to deliver that agreement to the title company. If there was only an agreement signed to reduce the commission, then that would have to be delivered.

Unless you post the entire agreement, no one will be able to give you a real answer.

However, in the event it was only a commission reduction agreement in this paper, then you should contact the agent's broker right away and discuss the situation with him/her.

[palmcoasting]

I'm not an attorney, but, IMO, yes the agent should have forwarded any signed agreements to the escrow agent. It's not up to the agent to decide what has/has not been breached. I would first call the broker to get a copy if you can't find yours. If they will not supply it then I would call the Realtor® association and ask for assistance getting a copy. And, if I wasn't sure what obligations I had/they had or if anyone breached anything, I would call an attorney.