I'm hoping someone can help me with a situation I'm in. I'm a Realtor, and I produced a ready, willing and able cash buyer to a seller. The seller of the home was also the selling broker. We wrote the offer with no contingincies and full price cash. The offer was accepted by the seller(selling broker) but upon the title search we found she had an IRS lien of $197,000 on the property. In the standard print section of the contract it states the seller has 30 days to clear defects in title. Well she can't! Do you think I'm owed commission?
Not a realtor, but have help negotiate a few agreements. Sounds like you're having learning experience in due diligence. IAW, no comission. If I were your client, I would give you a couple of hundred for expenses. If you found another house, quickly. I would expect that to be deducted from the new commission.
Posts: 5910 | Location: In DC looking for the other two wise men. | Registered: 07 December 2007
I'm not a realtor either, and I'm not even a real estate lawyer. But normally the seller has until closing to provide clear title. Why can't seller clear lien with proceeds of sale? Otherwise, you probably should have required seller to provide title insurance as part of the contract. Just my $0.02 worth.
Posts: 150 | Location: Florence, AL | Registered: 14 December 2006
Well I certainly have to disagree with CharlieFoxtrot. There are times when the realtor is entitled to a commission even if there is no sale. If the represented party backs out, the realtor has still done his/her job (i.e., producing a willing and able buyer/seller). The realtor can't force the sale but they are still entitled to reasonable compensation for their time and efforts. Do you think your mechanic wouldn't charge you if you took your car in, let him get the engine torn apart, then decided not to have the repair done? Same for a lawyer (at least for me). If I start a case and you back out, I'm still entitled to compensation for the work I've already done. I don't have to wait for a "result" unless it's a contingency case that depends on winning to get paid.
Posts: 150 | Location: Florence, AL | Registered: 14 December 2006
Think of it this way, If I had been representing the seller and had advertised the property to the tune of say $1,000 plus had open houses, shown the property many times,etc. Then a buyer comes along and we order title insurance and we find out about the lien. So you don't think I'm owed anything? It's the same principle. By the way the Real Estate Commission said to consult an attorney because they only make judgements in cases of license violations.
As bad as I hate to say it, I don't think you're entitled to any commission if the deal didn't make it to the closing table... My recommendation would be to find that buyer a different home! Maybe one of my listings?!?
Originally posted by farmguy: I'm hoping someone can help me with a situation I'm in. I'm a Realtor, and I produced a ready, willing and able cash buyer to a seller. The seller of the home was also the selling broker. We wrote the offer with no contingincies and full price cash. The offer was accepted by the seller(selling broker) but upon the title search we found she had an IRS lien of $197,000 on the property. In the standard print section of the contract it states the seller has 30 days to clear defects in title. Well she can't! Do you think I'm owed commission?
Write it up as a lost and forget it. It will cost you more to try to get the commission. I would ask myself is it worth the time and money for what little money you get back.
Posts: 6249 | Location: Some Where in Alabama near the river | Registered: 09 February 2008
Originally posted by farmguy: By the way the Real Estate Commission said to consult an attorney because they only make judgements in cases of license violations.
Ha, I learned that same lesson about the licensing agency I am under(Heating and Air conditioning). They are a consumer protection group that only will help me if I am reporting an unlicensed contractor. The only protection you and I,as well as many others have, is to charge enough for our services. I certainly don't know the answer to your question? I would not be going after the prospective buyer, but instead the seller should have done all of the homework before causing such an embarrassment. Will the proceeds from the sale cover the imposing lien on the property? I suggest you be patient, unless the buyer is on a restricted time frame.
"some don't like me, but I am one I would be proud to know"
Posts: 3698 | Location: Looking for a Piece of Mind | Registered: 01 February 2007
Originally posted by lawguy07: I don't have to wait for a "result" unless it's a contingency case that depends on winning to get paid.
And in realty, most cases are contingency cases: continengent on the closing. No closing, no fee.
======================= If everything is coming your way, you're in the wrong lane. -- Steven Wright Welcome to Alabama! Cut your grass or we'll whoop your ass. -- NashBama
Posts: 2833 | Location: In front of my computer | Registered: 05 November 2007
Originally posted by lawguy07: Well I certainly have to disagree with CharlieFoxtrot. There are times when the realtor is entitled to a commission even if there is no sale. If the represented party backs out, the realtor has still done his/her job (i.e., producing a willing and able buyer/seller). The realtor can't force the sale but they are still entitled to reasonable compensation for their time and efforts. Do you think your mechanic wouldn't charge you if you took your car in, let him get the engine torn apart, then decided not to have the repair done? Same for a lawyer (at least for me). If I start a case and you back out, I'm still entitled to compensation for the work I've already done. I don't have to wait for a "result" unless it's a contingency case that depends on winning to get paid.
So who pays him? Do both agents get paid? The broker?
When you work on commission results are the only thing.
It has been my experience that folks who have no vices have very few virtues. Abraham Lincoln
Posts: 187 | Location: LA | Registered: 26 June 2007
