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Everything was going along well with our sale until the last minute. About a week before closing we were presented with a long list of items from our HOA. Most were outside painting issues (cracked and peeling paint), which cannot be completed before closing due to weather. The HOA is being very unreasonable and requiring a complete house painting rather than addressing the problem areas. Some areas were painted only 1 year ago, but HOA is requiring them to be painted again. We had gotten an estimate for cleaning and treating and submitted this as a credit for the buyers. Now - after pushing the closing back a week(rescheduled on the day of closing) - they want us to pay 2-3 K more to have a complete painting of the exterior.
My question is do we owe the realtors a commision if we can't agree and the deal falls through?
Everything was going along well with our sale until the last minute. About a week before closing we were presented with a long list of items from our HOA. Most were outside painting issues (cracked and peeling paint), which cannot be completed before closing due to weather. The HOA is being very unreasonable and requiring a complete house painting rather than addressing the problem areas. Some areas were painted only 1 year ago, but HOA is requiring them to be painted again. We had gotten an estimate for cleaning and treating and submitted this as a credit for the buyers. Now - after pushing the closing back a week(rescheduled on the day of closing) - they want us to pay 2-3 K more to have a complete painting of the exterior.
My question is do we owe the realtors a commision if we can't agree and the deal falls through?
Yes, you do. The realtor did his/her job - it is not their fault the HOA is giving you grief and jeapordizing the closing.
The HOA doesn't care who does the repairs. They state that the repairs not completed by seller become the responsiblity of the buyer. So the HOA is not hindering the sale in that respect.
The buyer can complete the sale with the original agreement and do the repairs themselves
or
we can agree on a credit
or
we can do the work.
We have offered to do the work when the weather improves - buyers refused
We offered a credit for fixing the affected areas - buyers refused
They want to get an estimate for complete painting and want us to pay for all
You would need to read your listing agreement but normally if the house does not close you should not owe a commission. There are many reasons deals fall apart and agents don't get paid.
Thus the many joys of being a RE agent. No sale, no pay. This is where good agents get creative and figure out ways to make things work. If your agent wants to get paid it might require thinking outside the box to get all done.
You would need to read your listing agreement but normally if the house does not close you should not owe a commission. There are many reasons deals fall apart and agents don't get paid.
Thus the many joys of being a RE agent. No sale, no pay. This is where good agents get creative and figure out ways to make things work. If your agent wants to get paid it might require thinking outside the box to get all done.
Seconded. Your HOA sounds unreasonable. I hope it works out.
So, the HOA is requiring you to paint the whole exterior but you want to credit the buyers just for the problem spots? According to the HOA the whole exterior is the problem. If the buyers accepted the money for the problem spots then after the purchase they would be responsible for the rest of the money. Do you want to lose the deal over a couple grand? As far as the commission you should be okhowever you agent did secure a ready willing and able buyer so they could have a case if they wanted to persue it.
You would need to read your listing agreement but normally if the house does not close you should not owe a commission. There are many reasons deals fall apart and agents don't get paid.
Thus the many joys of being a RE agent. No sale, no pay. This is where good agents get creative and figure out ways to make things work. If your agent wants to get paid it might require thinking outside the box to get all done.
I'm thinking that must be another regional difference...in NC if you provide a "ready,willing and able buyer" you have earned your commission and are entitled to it regardless of the closing.
Everything was going along well with our sale until the last minute. About a week before closing we were presented with a long list of items from our HOA. Most were outside painting issues (cracked and peeling paint), which cannot be completed before closing due to weather. The HOA is being very unreasonable and requiring a complete house painting rather than addressing the problem areas. Some areas were painted only 1 year ago, but HOA is requiring them to be painted again. We had gotten an estimate for cleaning and treating and submitted this as a credit for the buyers. Now - after pushing the closing back a week(rescheduled on the day of closing) - they want us to pay 2-3 K more to have a complete painting of the exterior.
My question is do we owe the realtors a commision if we can't agree and the deal falls through?
If the deal doesn't close then I don't see why you would owe a commission. Sure, things may be different in your particular market due to that annoying hodgepodge of changing laws that sprawls throughout the country. But the bottom line is that there was no sale. Agents involved in the transaction need to see things through to the end of a sale and negotiate their way to get everyone on the same page. Sometimes the buyer's agent needs to smack some sense into the buyers and vice-versa. Check with a local real estate attorney if you're worried about it. I certainly don't get paid if I sell a product and the client pulls out hours before signing papers to make it official. I did my job yet I didn't get paid.
In your particular case, I think I would be more concerned about getting away from the HOA. I could ramble off a list of terrible things about HOA's, but I'm not going to go there.
I'm thinking that must be another regional difference...in NC if you provide a "ready,willing and able buyer" you have earned your commission and are entitled to it regardless of the closing.
But I don't think the buyer is willing. The buyer now wants the seller to paint the house, and I doubt that was covered in the original agreement.
You need to read over your listing contract carefully. I doubt you'll have to pay the commission... unless your contract said something to the effect that the home would not need any repairs at time of closing. The best thing would probably be to ask your Realtor about it. If you get the answer you want, don't worry about it. If not, then you should probably contact an attorney for an opinion.
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