Commissions When the Sale Doesn't Go Through

Commissions are typically paid only when a transaction is completed. However, there are times when a seller is theoretically obligated to pay the broker's commission even if the dealdoes not close—and this need is frequently specified in the listing agreement. This is an uncommon occurrence, but it might occur. For example, if the broker receives an offer from a buyer who is willing and able to buy, but the seller does any of the following:

  • They change their minds and refuse to sell.
  • Has a spouse who will not sign the deed (if that spouse signed the listing agreement)
  • Has a title that has unaddressed flaws
  • Commits transaction-related fraud
  • Cannot provide possession to the buyer in a reasonable amount of time
  • Demands requirements not specified in the listing agreement and mutually agree to cancel the transaction with the buyer
  • Listing contracts differ and are individually arranged. They may contain stipulations requiring the seller to pay the fee even if the home does not sell.

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