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Kimberly Bass, Real Estate Pro in Orlando, FL

In a short sale, is it legal for the bank to refuse to pay commission to a buyer's agent if the buyer's agent is one of the buyers? Buyer

Asked by Kimberly Bass, Orlando, FL Thu Oct 6, 2011

is an LLC.

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9
Kimberly,
Legal? I can't say, common yes. Banks are looking to avoid any costs they can on short sales and agents buying one for their own use have run into this. Banks also try and cut back commissions when agents are on both sides of a transaction.
1 vote Thank Flag Link Thu Oct 6, 2011
Sign the agreement and sue the bank a year or so later, either in small claims court or county court, saying that the commission was owed to your broker, NOT to you. Therefore, you had no legal authority to sign the agreement. Only your broker could agree to waive the commission! Actually your broker would have to agree to file the suit since he was the one that wasn't paid.
0 votes Thank Flag Link Wed Jul 30, 2014
This is so true and on all of our real estate exams!
0 votes Thank Flag Link Sat Nov 5, 2011
All banks have the right to refuse a ridiculous comission. They are taking a loss and most pay within reason.
0 votes Thank Flag Link Sat Nov 5, 2011
Since the bank is agreeing to take less money than the payoff for the note they have the right to refuse to accept or deny any of the
0 votes Thank Flag Link Fri Oct 7, 2011
In a Short Sale, one of the documents that is signed by all parties is an Arms Length Addenda.

A Buyer can not be a realtor receiving commission.
You can not list your own house or a relatives.

This is NOT arms length~

So, yes, the bank can refuse to pay commissions

Debbie Albert, Keller Williams Treasure Coast
0 votes Thank Flag Link Fri Oct 7, 2011
What does the contract that you signed say in this matter? If this is a provision of the bank's addendum that you signed, then you've agreed to it. If it's not in their addendum or in the MLS notes, then spend the money on a lawyer if the commission amount is material.
0 votes Thank Flag Link Fri Oct 7, 2011
I agree with Erica in that an attorney is better qualified to provide an answer....that being said, it is not uncommon for the lender (bank) to require an affadavit of an arm's length transaction, which states in part regarding any contractual sales commissions owed not be paid to a 'party to the transaction'.....which would seem to me that if you are a buyer (a party in the transaction), you will not receive any commission....check with specific contractual language....the contract and any addenda will dictate who gets paid.

Hope this helps
0 votes Thank Flag Link Thu Oct 6, 2011
All legal questions need to be answered by LAWYERS not realtors.
0 votes Thank Flag Link Thu Oct 6, 2011
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