buyers agent lazy

[vudoo2]

I have just sold my private residents which closed and funded 2 weeks ago. Today I get a call from the title company saying there was a mistake and the buyers agent didn't do his paper work right and didn't put in for his comission and now they want me to wire them the amount of the comission. The paper work on the closing states 0 for buyers commision. I said NO. What do you out there think.

[AaronSOLD]

Was the buyer's agent commission to be paid by you or by the agent that represented you on the sale?

[vudoo2]

From me the seller, the realitor still has not submitted the paperwork to the title company

[AaronSOLD]

If you have a signed contract to pay that amount to the buyer's agent, then the agent has a right to collect it. If the title company doesn't step up with their E&O to cover it, which I doubt they would cover it, then I'd expect to hear from that agent's broker eventually. The right thing to do in my opinion would be to pay what is rightly his. If you intend not to pay, you need to consult an attorney.

[Memphis]

In Tennessee and other states, your listing agreement states that (x)% is the sales commission paid by you to the listing agency. Let's say 6% for ease. That means, by contract you are required to pay at closing 6%. Then there is a separate Co-OP agreement between the agents agreeing upon a set split (3% & 3%).

There are different scenarios here.

If the listing company has the full 6% and has not paid the buyers agent due to this typo or mistake, then the buyers broker needs to go to your listing broker and make the appropriate request.

If the listing broker only received their due 3% and the buyers agent did not receive any commission due to the mistake it is a different story. If you were under contract to pay the 6% and the listing agent was under contract (both through the local MLS agreements and the CO-OP agreement) then they will have a case to pursue.

Not familiar with your state, and not being an attorney (disclaimer); I would have to say that the original contract obligation you made at listing would prevail in a court of law. However, if you are in a true Escrow state and the clerical error was theirs, then there may be an avenue for the buyers agent to pursue through their E&O insurance.

I am not sure I would bow up and refuse this, but see where it goes and consult an attorney. You can normally get a free 20 minute consultation through a referral service. Make sure they are real estate in origin.

In Tennessee we use closing attorneys, they look out for those things and will correct them prior to being an issue in most cases.

Good luck.

Of course you could always decide that you did agree to pay that portion of the commission for services rendered and just pay it because it is the right thing to do.

[kensmith]

If you have a contract you will end up having to pay it, but as always with legal matters it is better to call your attorney.

[Tim7332]

If you both belong to the same board and you offered selling office compensation on the MLS you are obligated to pay this amount to the buyer's agent. He can simply go to the board and they will suspend your membership until it is paid.

[james.ash]

Buyers Broker Commission are not generally set in the purchase contract between the buyer and seller,(unless it is FSBO) they are genereally set in the Listing Contract betwen the Seller and Seller's Broker. The Buyer's Broker generally does not have a contract with the Seller (unless it is FSBO)
The Listing contract should stipulate if the Seller's Broker is allowed to compensate a Buyer's broker. This is usually done by splitting the Seller's Broker's Commission.

If you are FSBO Owner...Is there a contract (Oral or written) between you and the Buyer's Agent/Broker?

Bottom Line if the Seller has agreed to compensate a Buyer's Broker, but through some error has not done so, go ahead and do the right thing, it costs you nothing more than what you have already agreed to. It may be painful if the money has already been spent but... If a Judge has to order you to do so, it could cost you a lot more.

[Fort Lauderdale]

Sounds to me like you've all made a mistake. You all reviewed closing statements and approved them knowing there was an error. You signed a contract to pay a commission, a commission is due. Pay it.

[Thesa]

I have actually had this happen - in Oregon the buyer's agent does not see the sellers net sheet. The agreement is with the seller and the listing company.... the listing company is responsible in paying the selling agent.

However, that is usually done so with 2 checks being written by the escrow company... in my situation the title company admited the mistake wrote a check for the entire commission and went back to the seller for the correction.

There is a binding contract that says the seller will pay... and in this case he did.

It is better to do the right thing - than have it bite you in the butt in the future.