Seller Refuses To Pay Broker's Commission With Listing Agreement - Delaying Funding Post Closing

[Bryan Hancock]

So we bought a small lot today that we plan to develop. The purchase was for $60k in cash using a buyer and seller broker. When the HUD came out the seller flipped out and didn't want to pay all of the commissions they agreed to in the listing agreement. Apparently the seller's agent didn't get them to fill out the net sheet detailing all of the expenses.

After the seller flipped out the seller's Realtor caved and agreed to waive ALL of their commission. The title company quickly drafted a new HUD which we all used today and signed off on at closing. The seller signed as well.

The trick is that the title company won't release funds and consummate the sale without a letter from the seller's broker stating that they are waiving all of their commission. Presumably this is to cover their rear end and not get caught in the middle of everything. The seller's broker (not the Realtor) is very slow to communicate and we now have funds sitting in escrow that are held hostage until we get this letter.

Has anyone dealt with something like this before? I am assuming things will get worked out, but I am wondering what to do if this drags on a bit. Should we threaten to sue the seller? Should we threaten the seller's broker somehow through their governing body? Any ideas? Walking away isn't a good idea because this is a smoking good deal and everyone has already signed.

[Michael Quarles]

This reminds me of the time a broker called me an *** square to my transaction coordinator. (he didn't even know me lol). Anyway I drove his huge brokerage asked to speak to him. As he came to the lobby to greet me he put out his hand to say hello.

Refusing to acknowlege his handshake I introduced myself and quietly asked him if he would like to chat in the parking lot about his comments.

You should have seen the deer in the headlight eyes.

Sometimes a real estate deal still needs a good butt woopin.