Furthermore, in my opinion, lenders who interpose themselves into broker commission agreements are guilty of torteous interference of a contract, but we have accepted it.
For those readers in the blog-a-sphere who are interested in learning more about Buyer's Agents and How To Select A Buyer's Agent, there is an interesting article at: http://LivingWellinSanMateo.com/?$=buyer%27$+agent.
Final question: Did you as the Buyer have a Buyer's Agency Agreement with your agent, and if so, what does it say about compensation?
Having said all of this, I cannot imagine either the Listing Brokerage or the Selling Brokerage asking the Buyer to cough up the commission unless the selling agent talked to you the buyer about it in advance and if you signed a Buyer's Representation Agreement that specified you would be paying any shortage in commission.
I think a heart to heart with your agent is warranted. At the end of the day, if the Brokerages are not getting much commission, it's not your fault and they need to take one for the team (you). Because if they make you happy you'll tell many people of your great experience. If you're not happy you will tell EVERYONE of your bad experience.
Best of luck,
Cheers to you,
Irvine, CA & Houston, TX
2008 Chair, Pacific West AOR MLS Committe
2008 Member SoCal MLS Board of Directors
2008 Member SoCal MLS Steering Committee
2009 Member-elect, Pacific West AOR Board of Directors
2009 Member-elect SoCal MLS Board of Directors
As you have probably gathered, there are rules on how agents interact over commissions.
1. Listing agent posts a commission in the MLS & is OBLIGATED to honor it.
2. There is a provision that allows listing agents to disclose that a property is a "short sale" and that the commission is subject to the banks approval.
3. The buyer's agent is entitled to enter into an agreement with the buyer.
4. Agents have a responsibility to NOT permit commission disputes between the agents to become controversial with respect to the buyer &/or seller.
5. "Short Sale" lenders will try to make up their shortage by getting money from anyone in the transaction.
From what you've said it may be that the bank is trying to get money from the agents and you. If this is the case it could easily seem to you that the agents are the ones trying to get money from you to make up the commission.
I would suggest getting a list of all of the bank's demands on you and the agents in writing so that you can try to understand what's going on.
Short sales can be incredibly sloppy because the banks don't feel that they have to follow any "rules".
Dilbeck Realtors, GMAC
Commision is between agents and who pays who and how much is usually outlined in the listing agreement. I take it that the offer was written with somesort of clause subject to bank approval of payoff/shortsale... (if not the listing agent has a bit more to worry about!!) so bank isn't chuffed with their net amount. If the property was in the MLS and advertised a co-op to the selling agent, that has to be honored (typically as part of the terms of memebership to the MLS).
In a round about way... your question's issue per se is between the bank, the listing agent and the seller... not between you, your agent and them. I am willing to bet that the listing agent is realizing that they are not earning a lot from this transaction and wanting someone else to pay them. **Double check to see how your buyer agency relationship addresses responsibility of 'sucess fee' with your agent. Under the scenerio you have given, you are not obliged to pay extra.... they may try and raise the purchase price though.