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Pguida, Home Buyer in Los Angeles, CA

Who pays commission when one of the sellers decides to buy out the other sellers?

Asked by Pguida, Los Angeles, CA Thu Nov 29, 2012

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16
If the house was listed with an agent and then one of the sellers decided to buy out the other seller.... then the agent would be entitled to a full commission, unless there was a clause written up that would eliminate the agent from their commission. Usualy the commission comes out of the sales price.. so even though one of the sellers bought out the other seller, you would now have a buyer and a seller (confusing). What ever price is being offered, subtract the commission and any leins, closing costs, etc.. and then you would have your net sales price. You are going to want to make sure that all the fees are being covered so this way at the end, no one has to bring money in.

Good luck!

James
1 vote Thank Flag Link Thu Nov 29, 2012
If both sellers agreed to "X" commission, and one buys the other out, I would argue that you are due the entire commission. As for who pays, the Sellers can work out how that is done. My guess is the purchasing seller should build in half the commission into the price. But that is between the sellers.
0 votes Thank Flag Link Wed Mar 19, 2014
If the property is listed with a broker it is whatever your contract states but maybe the agent would agree to do this a a reduced fee ! Good Luck !
0 votes Thank Flag Link Thu May 30, 2013
Liked your answer Doug!
I was laughing aloud there a bit.
0 votes Thank Flag Link Thu Jan 31, 2013
My momma told me not to answer a question with a question. Since my Momma is not reading this blog, here it goes..

Are you doing a private transaction?
If yes, there is no commission, just straight paperwork with an attorney.

Is this a property sale through a real estate agent?
if yes, then the seller pays commission. If more than one seller signed the listing contract, both are responsible for the commission, which will come out of the purchase price at escrow.

you have any questions or concerns, call, text or email me.

Douglas Lagos
Realtor®, Certified HAFA Specialist (CHS)
DRE# 01921046
Coldwell Banker Residential
Tel. (310) 463-8088 http://www.douglaslagos.com
0 votes Thank Flag Link Mon Jan 14, 2013
The seller who has bought out the other sellers would be the person left with the contractual relationship and therefore will be the person responsible for the commission bill. If the other sellers have sold the rights to the property they also release the obligations of the listing contract.
0 votes Thank Flag Link Sun Dec 30, 2012
The seller pays comissions. Good question.

Lacy Burke
REMAX
310-666-9752
0 votes Thank Flag Link Sat Dec 8, 2012
The seller always pays the commission
0 votes Thank Flag Link Thu Dec 6, 2012
I would negotiate it upfront. Could be an easy 50/50 split?
0 votes Thank Flag Link Wed Dec 5, 2012
It sounds like this is being done off of the MLS and the fee is totally negotiable. Of importance here is whether the sellers are in agreement about terms or whether they need to be negotiated.

This can also be done by seeking a real estate attorney,
0 votes Thank Flag Link Thu Nov 29, 2012
Not sure if you are an agent. If you are the listing agreement is between the seller and the agency. Not the house and the agency. So if the seller who signed the listing agreement with the agent is the one who sells to the other one, then I would think you are out of luck.
0 votes Thank Flag Link Thu Nov 29, 2012
It should state in the listing agreement. Otherwise, negotiate it.

If you need an agent to sell it, I'll be glad to help you.
0 votes Thank Flag Link Thu Nov 29, 2012
Everything is negotiable. There is no fast rule, but generally the Seller pays commission.
0 votes Thank Flag Link Thu Nov 29, 2012
If you have a listing contract then it should specify commission terms. If there is no listing contract then you find a realtor and negotiate a contract for the services needed. Use a professional as the sale of valuable property requires professional review so that you don't have disagreements or misunderstandings down the road (or with heirs).
0 votes Thank Flag Link Thu Nov 29, 2012
It depends how your contract is worded. If you want to email me your contract, I can review it and let you know what your Buy-Out Agreement should state as far as commission. Caroline.wcli@gmail.com
0 votes Thank Flag Link Thu Nov 29, 2012
If your property is listed, it depends what your contract states. if you inclided a statement in your listing agreement that in the event the property is purchase by one of the owners there is no commission than none. If you dod not, the sellers together would have to pay the listing commission unless you can negotiate with the listing agent
0 votes Thank Flag Link Thu Nov 29, 2012
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