Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Take Your Forum Experience
to the Next Level
Create a free account and join over 3 million investors sharing
their journeys and helping each other succeed.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Already a member?  Login here
Real Estate Agent
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated almost 8 years ago on . Most recent reply

User Stats

30
Posts
6
Votes
David Blue
  • Investor
  • Framingham, MA
6
Votes |
30
Posts

Commission not paid to me

David Blue
  • Investor
  • Framingham, MA
Posted
I'm a RE broker and initiated a P&S contract in feb 2016 for an investment property. That cash contract fell through on my part and the exclusive right to sell held by the sellers agent expired in May 2016. I sought conventional financing and approached the sellers agent when I was approved in March 2017. The agent spoke with the seller and told me the deal was back on. The agent never showed me an agent exclusive right to sell listing but did produce an invoice from her firm which stated the commission amount, deposit and balance due from the seller for the property. Closing was yesterday and I was denied a commission check. I was told by the sellers agent who was absent at the closing that the seller had reneged on signing an exclusive listing and as such there was no buying commission to be awarded. One of main incentives for the purchase was my 2.5% commission. I feel the sellers agent misled me all the way to the closing and owes me my commission. In fact I hate to say it and have no proof but I think the sellers agent stole my commission. Do I have a case?

Most Popular Reply

User Stats

15,180
Posts
11,265
Votes
Joel Owens
  • Real Estate Broker
  • Canton, GA
11,265
Votes |
15,180
Posts
Joel Owens
  • Real Estate Broker
  • Canton, GA
ModeratorReplied

I don't do that separate agreement with the seller crap. Listing brokers sometimes lie through their teeth.

When I submit an LOI on a commercial property I have a section where the seller agrees to pay me X percents AT CLOSING, AS A CONDITION OF CLOSING. This part of the LOI is binding upon the seller with the purchase and sale contract.

Keeps the seller or listing brokers from being weasels and liars.

Sometimes listing brokers say they are splitting 50/50 but they are not. You get to closing and the listing broker took 3 and gave you the buyers broker 2. Again if it states 3% to buyers brokers in the LOI and is binding upon the seller they can't play these games.

Listing broker will say they have agreement with the seller for XX. I could care less and ask the seller to pay me more and make up whatever difference to get to 3% to me as I have the buyer etc.

You have to learn to protect yourself in this business.

business profile image
NNN Invest
5.0 stars
3 Reviews

Loading replies...