Do we owe this broker/agent a commission?

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Latest post Wed, Apr 12 2017 3:58 PM by cathammer. 24 replies.
  • Wed, Dec 2 2015 7:33 PM In reply to

    Re: Do we owe this broker/agent a commission?

    I'm not a lawyer, but I have been a home seller four times (once in Ohio, three times in Washington State).  From your description of what happened and of what you signed, it seems to me that you do not owe this agent a commission.

    You should of course carefully read any additional documents you are asked to sign before signing them, particularly the escrow instructions.

  • Wed, Dec 2 2015 9:17 PM In reply to

    Re: Do we owe this broker/agent a commission?

    See if you can get a preliminary HUD-1 settlement worksheet (or its equivalent) from the escrow company or the attorney and that'll show you where the money is going and who it's coming from.

    If you've never seen a HUD-1 there are plenty of resources online that will explain it to you and show you samples:

    https://duckduckgo.com/?q=hud-1&ia=about

    Learn how it works and you'll be able to figure out where the commission money is coming from.

    It will either show the commission coming out of the sale proceeds which means you are paying for it, or it will show that the buyer is bringing extra money to the deal to pay the realtor.

     

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  • Thu, Dec 3 2015 3:53 PM In reply to

    • cathammer
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    Re: Do we owe this broker/agent a commission?

    Thanks, Jack.  Good Idea, although I think I'll still wait a little bit before asking.

  • Fri, Dec 4 2015 8:08 AM In reply to

    • Drew
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    Re: Do we owe this broker/agent a commission?

    I don't see any risk to ask for the HUD1 as early as possible from the entity that is creating it ....just keep the request on simple point .

    What you don't want is to be handed some pile of stuff about 2 minutes before everyone is clammoring  for your signature....



  • Fri, Dec 4 2015 8:27 AM In reply to

    Re: Do we owe this broker/agent a commission?

    Just catching up here.

    One would need to read the relevant paperwork to opine intelligently about this, but I think it's probably good that you don't intend to "kill the deal over paying half of 2.5%."

    In my opinion, acting as an executor/administrator of an estate is NOT a good do-it-yourself job -- particularly where the estate owns real property.  As an executor/administrator, you owe fiduciary duties to the beneficiaries, and I think it is generally very foolish not to retain counsel so that everything gets done correctly.

  • Fri, Dec 4 2015 6:00 PM In reply to

    • cathammer
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    Re: Do we owe this broker/agent a commission?

    Drew:

    I don't see any risk to ask for the HUD1 as early as possible from the entity that is creating it ....just keep the request on simple point .

    What you don't want is to be handed some pile of stuff about 2 minutes before everyone is clammoring  for your signature....

    I don't plan on waiting until the last minute, but closing is still 1-1/2 months away.  If I get the form now (assuming they've even prepared it yet), and it shows what I fear it might, I think I'd be forced to point it out within a day or so, which could leave the extended time that I wanted to avoid for things to go south.  I think maybe I'll ask about 10 days out.

     

  • Fri, Dec 4 2015 6:16 PM In reply to

    • cathammer
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    Re: Do we owe this broker/agent a commission?

    ca19lawyer2:

    Just catching up here.

    One would need to read the relevant paperwork to opine intelligently about this, but I think it's probably good that you don't intend to "kill the deal over paying half of 2.5%."

    In my opinion, acting as an executor/administrator of an estate is NOT a good do-it-yourself job -- particularly where the estate owns real property.  As an executor/administrator, you owe fiduciary duties to the beneficiaries, and I think it is generally very foolish not to retain counsel so that everything gets done correctly.

    Hi ca19,

    Thanks, I think we'll be OK. I've distributed the bulk of the estate already, and kept my brother and sister (the only other heirs) well in the loop. This is the only piece of real property that hadn't been transferred before my mother's death, and a pretty small portion of the whole estate.  We've been communicating more closely on this particular item, are all in agreement, and will all be signing off on the transfer.  I will be checking with the lawyer who handled probabate on my father's estate there in MS.

     

  • Sat, Dec 5 2015 5:44 AM In reply to

    • Drew
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    Re: Do we owe this broker/agent a commission?

    If I closing is in Miss and you are in GA,  plan ahead as to who neds to be where with what docuements  and what powers.....often the sellers presence can be done ahead of time with good paperwork ..but be careful.

    Ive seen folks fuss over small stuff at closing ..and the bully may win if others are unprepared ....example , it's common is my area to split the transfer tax of 2-4 % but sometimes the printed word says otherwise ....and the ofFice staffer who prepares the distribution forms may or may not be on her or his toes 



  • Sat, Dec 5 2015 8:31 AM In reply to

    • Drew
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    Re: Do we owe this broker/agent a commission?

    You didn't ask...but be sure as executor you have opened up any required ancillary probate in Miss so as  to convey good title to the lands the estate seeks to sell there... 



  • Wed, Apr 12 2017 3:58 PM In reply to

    • cathammer
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    Re: Do we owe this broker/agent a commission?

    A much belated update for anyone who might be interested in how this turned out.

    Agent DID expect us to pay a commission; it turned up on the HUD form when the closing attorney in MS finally got everything sorted out and got a copy to us a day or two before closing.  At that point, I advised him of the general situation as laid out in my posts here, he looked over the sales contract and other papers, and essentially said "Hmmm, you're right, she screwed up."

    Keeping the lawyer handling probate in MS in the loop, he advised that since the sales contract was part of what he had to include in his presentations in court to get permission to clear title, sell the property, etc., that, as executor, I could make no offer of any extra payment as a "compromise" in the situation, but would have to start over in a fairly time (and money)-consuming process to rework things if I wanted to pay her anything. (Aside: He had a very low opinion of RE agents, in general.)

    The closing attorney passed along this info, which resulted in the agent phone-harrassing both attorneys and me...I volunteered very little information to her and finally told her to only contact me through the probate lawyer.

    The night before closing, the closing lawyer called me and asked if I wanted to just handle my part of the closing later in the day from the buyer's part, where the agent would be present (the buyer was not interested in delaying or giving up the deal).  We did that, and avoided further unpleasantness.  I don't know if he paid her anything on this deal, but the buyer later listed the renovated house with the same agent, so she wasn't completely left out.

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