Commission not paid to me

[David Blue]

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?

[Joel Owens]

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.