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In NC with a buyer agency agreement, it states what the buyer is responsbile for in commission to their agent if we can't collect from the listing agent. When I list, I certainly try to understand the numbers in advance and review them with my prospective sellers.... why would you take on a listing in advance where you know you won't/can't get paid and can't offer a co-broker commission honestly?
Tony and Suzanne Marri...
As a listing broker I've taken payment for commission over s few months. Legal documents were signed.
That is when the seller brings a check along to the closing table, something that happened many times in the past decade.
That should be addressed in the listing agreement, and in my market, it's traditional for the seller to pay the listing office and the listing office pays a co operating commission to the office that brings in the buyer.
I make sure I am not in that position from then start
That should be addressed in the listing agreement or the buyers rep agreement.
What has been "promised" in the multiple listing service remarks?
I agree with Marc Swartz, refer to the contracts, listing, MLS, P&S and if you are the listing agent you had better hope you covered that possibility in the contracts.
If there is a listing agreement, stipulating the amount of commission to be paid, the seller must pay the commission from some other source of funds. You say the mortgage AND other items will be paid but no money for commission? Why is the commission considered "left overs". It is part of the contract with the seller.
We saw this in the slow years - seller must bring money to closing.
The commissions are handled just like any outstanding balance from the deal, and the sellers have to write a check to get the deal to close.
This sounds like a short sale to me. If I sell a home, custom is the seller pays the commissions due. If the amount is not enough to cover the mortgage and cost of selling, then the seller needs to have a long chat with their mortgage company and their attorney.
Tony and Suzanne Marriott, Associate Brokers This is addressed in the BBA with the Buyer.
Here it would be in the listing agreement that the seller would be taking care of the commission. A short sale sometimes will come up short and hopefully one has a buyers contract.
The seller must bring proceeeds to the table or it does not close. All arranged up front. No surprises.
Good Sunday morning Tony and Suzanne. That's a good question I don't think that I've heard of this one before.
I look to get my commission from the coop side of the transaction. It is not my problem if there is a negative and I wouldn't be privy to that information until I see the closing papers. The seller and listing agent must figure that out.
That should have been determined when the title company prepared the closing papers.The Seller usually takes care of it.
The seller and the buyer.
The seller...I really hope this works out for you. When you did the "Sellers Net Sheet" and saw there would be nothing left to cover your commission did you have a discussion with the seller about how you would get paid? You may have to go to court and I would weigh it to see if it's worth the time and money you will spend in court expenses.
Tony and Suzanne Marriott, Associate Brokers Generally, seller should pay the commission.
Isn't that called a "short sale"?
The home seller may have to make a contribution to cover the commission.
One should check out the mortgage balance. If you stipute a commission to be paid no matter what, you send demand for commission if not collection agency or small claim court. One way or other the borkerageS need to get paid.
that looks like a deal that shouldnt have been a deal :) . but it happens. as marc said, see the contract. is it a short sale?
As a starting point, you would need to refer to the relevant agreement(s) in order to determine the answer.