General Area in Santa Monica>Question Details

Elisabethmpld, Home Seller in Santa Monica, CA

Sale falls through and house is taken off market.

Asked by Elisabethmpld, Santa Monica, CA Wed Nov 21, 2012

What if you are approached by someone who had seen the house with a broker and wants to make a deal? Does broker get commission if this happens ?

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Dorene Slavitz’s answer
Yes the Brokers (buyer agent and listing agent) will both get their commissions if a buyer was brought through who now wants to "make a deal" with you. The term is "procuring cause" and it is the subject of many lawsuits.
0 votes Thank Flag Link Fri Nov 23, 2012
Great question and good for you for asking. The answer depends on two things:

1) As far as the listing broker goes, s/he may be entitled to a commission of a buyer (who saw the home during the list period) buys within a certain period of time after the listing expires, What the specific period of time is - is in the listing contract between buyer and seller.

2) The buyer's broker is only legally entitled to a commission if he/she has an exclusive buyer's contract with the buyer. Without such a contract,, the buyer is not legally obliged to the broker although one may question it morally. Now...sometimes, the listing broker may be kind enough to alert the buyer's broker, and do the right thing agent-to-agent. I've seen that happen.

Realtors as a whole are not a highly regarded species and consumers will sometimes try to get around them thinking they are going to save money.

Thanks for asking.
1 vote Thank Flag Link Wed Nov 21, 2012
Good morning,
Was the broker your listing agent?
Susan Bo'ur
Realtor
Coldwell Banker
(310) 600-4240
Susan@SusanBour.com
1 vote Thank Flag Link Wed Nov 21, 2012
It depends on a lot of factors. Good answers below. Just a wild guess are you talking about the property on 704 15th st 90402? Putting the clues together! Give me a call if you need any help.



Chris Creed
310 502 0600
0 votes Thank Flag Link Wed Nov 21, 2012
Elisa,

It's Elizabeth again. Actually, I realize you said home is off market. If the listing agent registered that particular buyer, and read the terms of the listing agreement. You may or may not owe the commission according to the terms. Please give me a call and I'd be happy to assist you with this issue. Thank you.
0 votes Thank Flag Link Wed Nov 21, 2012
Hi Elisa,

If you have an exclusive listing agreement, the buyer needs to go to his/her broker and that broker will contact your listing broker, and you will still pay the commission. Unless, in your listing contract you excluded that exact buyer who approached you. If the home does not sell and it expires, cancels or withdraws, feel free to contact me to assist you. Thank you.

Elizabeth Sorgen
310-469-0500
0 votes Thank Flag Link Wed Nov 21, 2012
A broker gets paid only when the Seller or the Buyer has agreed in writing to pay the broker, and the Broker fulfills the conditions to collect the commission.

George Salazar
Prudential California Realty - Santa Monica
George@WestsideGeorge.com
(310) 255-3414 direct
0 votes Thank Flag Link Wed Nov 21, 2012
Hello Elisabeth,

Unless you have signed a contract with a Broker to represent you either as a Seller or as a Buyer, in California you are free to select a Broker to represent you at any point.

George Salazar
Prudential California Realty - Santa Monica
George@WestsideGeorge.com
(310) 255-3414 direct
0 votes Thank Flag Link Wed Nov 21, 2012
The "buyer" may be responsible for paying their broker a fee and this has absolutely nothing to do with you. You as the Seller have no relationship at all with this agent. Your former listing agent may be entitled under some circumstances to a commission without seeing your listing agreement and knowing whether they did what they needed to do in order to protect themselves and how much time has expired since the property came off the market I can't say for certain. This is the formal legal perspective.

That said, you seem like an ethical person, the potential buyer seems like an untrustworthy, unethical person and the question you should be considering is, "Is this someone I trust and want to do business with?"

If your answer is no I don't particularly trust this person given that they've already shown how their willing to behave then I'd suggest you contact your agent and get them involved again. If you don't like your agent perhaps you want to contact the buyers former agent and bring them in.
0 votes Thank Flag Link Wed Nov 21, 2012
The one who showed the house should be compensated.
Seems fair to me.
Based on your sense of fairness, what do you think the outcome should be?
0 votes Thank Flag Link Wed Nov 21, 2012
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