Question: I submitted an offer on a short sale which took 2 months for approval and were schedule to close, however, a day before closing the listing agent decides to lower my commission because according to her our office does not pay what she pays, she did not tell me this when the offer was made or accepted and the commission is advertised with the higher commission split, the agent's broker and her have said that they will cancel/postpone the closing and will only close it if I take less of a commission. The buyer, seller and seller's lender are ready to close. I will not take less because I find it unethical and I believe they have no right to cancel a closing. What are your thoughts?
Thank you
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If you stand inthe way of the closing, the buyer can sue you.
Thank you All for your suggestions they were very helpful and the transaction closed with our office getting as advertised in the MLS after an email was sent without anymore delays from listing side :-)
Here in Arizona you can file a commission dispute at title at closing. So close on the file then file dispute. May have to go to arbitration but our MLS is very strict with rules that you pay what is posted in MLS UNLESS otherwise disclosed prior to buyers agent presenting offer to listing agent. Neither agent can hold up a closing based on commission. At the very least, even if you do get your full commission owed at closing, I would file an ethics complaint on the listing agent. They need to learn their lesson on how to serve ethically. Maybe some mandatory training or a fine will be a good lesson for this agent.
She can't lower the commission now. You are due what was represented in the MLS listing. Send your commission demand into escrow for the full amount as advertised in the MLS listing. Let the closing occur, you can work out the commission later.
The MLS is not an advertising platform, it is an agreement between brokers to offer compensation to other brokers for selling a brokers listings. Most MLS's have rules in place for short sales that require a listing agent to state how commission will be split in case the bank reduces commission in a short sale situation. In our area, I would say that all of the brokers split 50/50 if there is any reduction. I always print out a copy of the MLS display whenever making an offer and place a copy in the file, just in case something like this ever happens. The original co-broke amount that was displayed on the date you brought a ready willing and able buyer WILL be the commission your broker is due. You would simply have to bring the dispute before your MLS board or committee and they would have no choice but to side with you on this. Of course you would still have to bring your buyer to the closing table first.
What if the commission is reduced to ZERO or $50?
Are you obligated to participate if you are not being paid at all?
Phil. Another reason why buyers agents need to have an agreement with their buyers guaranteeing them a minimum commission. I am clueless as to why buyer's agent still don't know how to get paid. Boggles my mind.
To answer your question. If you agreed to let the co-broke be reduced, based on what the lenders is willing to pay out of the proceeds of the sale then, yes, you are obligated to accept ZERO if that's what the lender agrees to pay.
Foolish wouldn't you say?
If you truly want to learn how to get paid then I have written numerous articles that will help. CHECK IT OUT
I go with Bryant - I have represented agents with this issue before local real estate boards and the buyer's agent wins everytime.
Hi Tavo,
I sure hope you printed out a copy of teh listing from MLS the day you made the offer to show your board. I always make a copy for my file just for this reason. The other people are being bad but be the better agent. Escrow the commission and file a formal complaint at the board then go through the process. We have a responsibilty to our clients.Hope you will prevail!!!
It's called a bluff.
Call them on it.
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