2,684,009
I take fees up front, in writing, clearly stated as a retainer or a consulting fee, non-refundable. With respect, I believe that asking for $$$ after the deal crashes (even if it is the buyer's fault) is adding insult to injury.
Also with respect, DBPR and FREC will require that $500 to be paid to your Broker. A salesperson or broker-salesperson in Florida cannot be paid directly by a customer or client.
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Sandy Padula & Norm Pa...
, CA
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Teri Pacitto
Westlake Village, CA
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Anthony Acosta - ALLAT...
Atlanta, GA
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Thomas J. Nelson, REAL...
La Jolla, CA
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Kathleen Daniels, Prob...
San Jose, CA
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Melissa Jackson REALTOR
Azle, TX
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Michael Setunsky
Woodbridge, VA
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Lyn Sims
Schaumburg, IL
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Eve Alexander
Tampa, FL
5,104,931
Was this a fee negotiated up front if the deal didn't go through? Otherwise your question is not making much sense.
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Anthony Acosta - ALLAT...
Atlanta, GA
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Kathleen Daniels, Prob...
San Jose, CA
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Fred Griffin Florida R...
Tallahassee, FL
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Roy Kelley
Gaithersburg, MD
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Ron and Alexandra Seigel
Carpinteria, CA
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Eve Alexander
Tampa, FL
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Richard Weeks
Dallas, TX
4,882,349
My thoughts some will, some wont, so what, next.
Try to salvage the relationship. That $500 is nothing compared to possible future business from her and referrals. Now all she is going to do is bad mouth you to others. How much do you think it cost you to get a lead? Just my opinion.
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Bob Betel
Sweetwater, TN
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Pete Xavier
Pacific Palisades, CA
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Fred Griffin Florida R...
Tallahassee, FL
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Ron and Alexandra Seigel
Carpinteria, CA
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Eve Alexander
Tampa, FL
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Nina Hollander, Broker
Charlotte, NC
5,772,575
In California, we had a trust account, where monies went when an offer was for an office/retail lease or a sale. A trust account is kept in trust for the cllient and if the deal dies, all monies are returned to that person. On our contract, it was clearly stated. In one instance of working on deal for 3 months with a premier international luxury brand, which at the last minute was nixed by the Feng Shui master from San Francisco and the leases had been negotiated by all parties and ready to sign, we had a very large sum sitting in the trust account. I wrote a check for that exact sum, and we both worked our butts off as did all parties. Untill all parties execute a document, you are not entitled to a cent.
As Richard Weeks said a reputation is worth so much more than $500, and worth more than what I wrote a check for A.
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Anna "Banana" Kruchten
Phoenix, AZ
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Fred Griffin Florida R...
Tallahassee, FL
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Susan Emo
Kingston, ON
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Eve Alexander
Tampa, FL
5,048,718
$500 for what? Was there an agreement in writing about a fee to be paid if things did not move forward for some reason.
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Fred Griffin Florida R...
Tallahassee, FL
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Roy Kelley
Gaithersburg, MD
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Ron and Alexandra Seigel
Carpinteria, CA
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Nina Hollander, Broker
Charlotte, NC
1,452,619
Until it is in your bank account, it is not yours. You can't lose what you didn't have. $500 ?? Really?
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Ron and Alexandra Seigel
Carpinteria, CA
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Nina Hollander, Broker
Charlotte, NC
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Susan Emo
Kingston, ON
6,392,899
What is unfair, that she cheated you out of your commission by spending her down payment elsewhere?
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Anthony Acosta - ALLAT...
Atlanta, GA
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Lyn Sims
Schaumburg, IL
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Ron and Alexandra Seigel
Carpinteria, CA
2,220,323
Thank you Fred Griffin
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Fred Griffin Florida R...
Tallahassee, FL
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Anthony Acosta - ALLAT...
Atlanta, GA
3,988,007
It sounds like willful breach to me, but I am not an attorney. If she paid it the buyer must have felt like responsibility for the denial.
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Kasey & John Boles
Boise, ID
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Anthony Acosta - ALLAT...
Atlanta, GA
1,712,676
That might be an issue in Oklahoma. A denial for whatever reason is one where earnest money would go back to the buyer regardless of wheter she spent the down payment.
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Fred Griffin Florida R...
Tallahassee, FL
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Eve Alexander
Tampa, FL
938,407
Karen, in my opinion it would only be unfair if you had not discussed this in advance. Better yet, if she signed a buyer broker agreement that stated there was a $500 retainer fee paid to you if the person did not close on a property, how can she complain? Our time is worth SOMETHING, and if buyers paid a fee upfront or know they will have to pay a fee if they flake then you will get serious buyers.
Hmmm, I wonder if a lawyer represented her in a FSBO transaction and if she did not close the sale for any reason if the lawyer would waive compensation???
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Mimi Foster
Colorado Springs, CO
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Lyn Sims
Schaumburg, IL
1,725,896
As Fred Griffin wrote. We live and die by the most recent transaction whether successful or not.
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Fred Griffin Florida R...
Tallahassee, FL
599,274
How is it "unfair" if it's in the written agreement?
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Kasey & John Boles
Boise, ID
4,800,082
If it was in your contract with her, that's fine.
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Kasey & John Boles
Boise, ID
3,340,443
Never heard of such a thing...unless it was part of the contract...I vote with the client.
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Eve Alexander
Tampa, FL
1,622,432
I do not know any realtor/broker who charges any fees upfront in my hood. If you had an agreement in advance that stated that you are paid a certain fee regardless of closing, that should be honored by clients.
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Kasey & John Boles
Boise, ID
1,157,785
What does the contract between the buyer and your brokerage state?
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Kasey & John Boles
Boise, ID
1,543,225
I think Fred Griffin touched on best where I was going with my question...you did split that with your Broker and run it through them first yes? There could be more trouble than $500.00 is worth if not.
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Fred Griffin Florida R...
Tallahassee, FL
1,844,171
First off, I hope you mean she gave your broker $500. Now if she deliberately spent her down payment then I would say she is in default of the contract & seller could sue her for specific performance. That's what would happen here in our state & I would go for more than what you did. DEFAULT.
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Fred Griffin Florida R...
Tallahassee, FL
1,052,056
Do you mean earnest deposit? I don't know about your state, but in ours the buyer has to make a good-faith effort to obtain the mortgage. Spending the down payment money, causing a denial is not a good faith effort and their earnest money should be forfeit.
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Lyn Sims
Schaumburg, IL
711,752
The answer depends on your contract with your buyer. If you had an agreement to be paid should she cause her own sale fail, then this is a valid result and your payment received is appropriate. But all such payments should go to the brokerage first and be subject to your contract with the brokerage. But this is such a rare resut of a sale fail, that I cannot say I have ever heard of such a thing before.
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Lyn Sims
Schaumburg, IL
5,583,278
not sure of the legalities, but we would not charge anyone unless we closed....
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Teri Pacitto
Westlake Village, CA
1,390,113
If it's a fee that was specified as being non-refundable, then sure.
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Kasey & John Boles
Boise, ID
5,215,848
She was denied. Money should be refunded according to the contract terms. Both paries should sign an authorization for release.
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Eve Alexander
Tampa, FL
564,494
3,416,038
Well if they get rejected within the time frame and the sale was contingent on a mortgage, they wold get it back in my eyes, even if dumb enough to spend their down payment
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Lyn Sims
Schaumburg, IL
7,835,266
I have never seen a commission payment for this reason. Hopefully, your settlement agreement is documented.
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Anthony Acosta - ALLAT...
Atlanta, GA
613,494
1. Depends upon what the purchase contract says.
2. Depends upon what the written agreement you have says.
3. Depends on who you are representing...
Eve
Ps: Regardless, are you really going to burn a bridge over $500?
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Fred Griffin Florida R...
Tallahassee, FL
1,045,440
I am very very late to this post and all seems to have been solved/answered here :-) Happy Days!
979,496
Karen - I guess if you had this written into your contract, and the EM deposit went to your broker before being distributed to you, then it is okay and you covered all your bases.
5,868,372
900,008
1,502,858
989,652
I'm sorry I do not understand this - are you asking for more money from the buyer after they lost a deal?
If so, all I can say is wow!
809,258
If it was discussed and agreed to in writing as a fee for service, if it wasn't the earnest money that likely was due back to buyer or seller, and if it went through your broker then it is not unfair, it is just following through with an agreement. -Kasey
4,935,556
Depends, If you have something in writing ahead of time on a buyer agency agreement. Not all states are the same.
1,617,916
3,071,489
4,319,419
Karen Jones Lewis, MBA, Realtor - it depends on, if you already have such agreement in place. I do not.
3,344,906
Contracts and legality aside ... it is not something I would do. I hope it was done properly and you have your proverbial bottom covered.
321,564
Any money your getting from a client should go directly to the broker then split. I understand your frustration - feeling like your working for nothing. If your agreement stated this before working together - your client knew it. Will this client come to you in the future? Offer referrals?
2,781,013
921,504
I make clear to my clients I receive compensation ONLY on closed deals.
Any revenue generated in situations other that a closed deal go directly to the entitled client.
DEFINITELY NOT ME.
You created a citizen who now has a lot to say.