Is sharing forfeited deposit with listing broker a common practice?
We are about to list with a broker who has put into the listing contract a clause which stipulates 25% of forfeited money will go to the broker. "In the event of forfeiture of payments made by a prospective Buyer on any contract obtained during the term of this Contract, the sums so forfeited shall be divided between Broker and Seller, 25% thereof to Broker, but not to exceed the commission agreed upon herein, and the balance to the seller." The broker is getting a fair commission for a sale. Why should broker be entitled to anything more than that commission?
Jim,
This is actually standard in the Wyoming Real Estate Listing Contract. The agent just fills in the blank for the percentage that would go to them if earnest money is forfeited by a buyer. But I believe that percentage is conved only if you are no longer intending to sale the property.
Jim,
Find another agent.
http://books.google.com/books?id=kyZHhebzT8AC&pg=PA194&a…
You might want to have a look at the blog attached to the link below as well.
http://www.trulia.com/blog/rockinblu/2008/12/i_ve_got_my_fin…
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