Real estate agent commission

dallas2012January 29, 2013

I have a situation here, i started with a agent looking for a house for almost 2 years, looked about 50 huses, then I found a new subdivision with new construction going on. I let my real estate agent know about it, and signed a P&S with the builder. When the house was half way finished, the builder filed for bankruptcy, and I lost my deposit. I was then able to buy the property from the bank, and hired a GC to finish the house. I lost a lot, didn't really get a good deal from the bank. My agent wants some compensation for his time, I do want to pay some thing for his service,
but not the commission he's hoping for based on the value of the house, plus I wasn't expect to pay for him. Thanks.

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RooseveltL

A few questions -
Did the agent help you in any way with the contract to acquire the property from the bank? And how did you do it?

IMHO, if agent was involved when the builder filed bankruptcy similar to any sale which goes belly up either due to lender, appraisal or seller bankruptcy - that arrangement is null and void. The seller typically pays the agent out of his/her proceeds and not the buyer.

Unless, the bank is aware of the agent - it really is a business arrangement and not any intentional act of your own to stiff him out of his percentage. It is unfortunate but not your fault - business is business.

    Bookmark   January 29, 2013 at 2:14PM
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LOTO

If you signed a Buyers Agency agreement with your Realtor and it was still in effect when you made the offer to the Bank/Seller then there is agood chance that you owe him a commission regardless of who you purchased the property from....if not then it is less likely...the original sale may be null and void but the Agency Relatonship (Buyers Agency) may not be and that is the key.
If you signed a Buyers Agency Agreement then read it carefully and you should find the answer to your question.

This post was edited by LOTO on Thu, Jan 31, 13 at 7:03

    Bookmark   January 31, 2013 at 6:58AM
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ncrealestateguy

LOTO is correct, IMO.

    Bookmark   January 31, 2013 at 10:16AM
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