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Real estate agent rebate issue

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littleJoe

Registered User
What is the name of your state? MA

This is a dispute between a real estate agent "A" and her client "C". C buys a $1,000,000 house first and then sells his existing $600,000 house.
They used text message to agree the follows:
"A" agrees to refund $5000 from earned commission to "C" for purchasing the first house if "C" allows "A" to represent "C" for selling his house.

They didn't reach any agreement about how much "A" should earn for the commission for selling "C" house. So here is the dispute:

A's argument: the agreement to refund the $5000 has condition to let A sell C's house, so $5000 will not be paid before a new agreement to sell is signed which should have commission 2.5%.

C's argument: $5000 should be paid first. Then signing a new agreement to sell, the new agreement to sell should only have 1.5% as commission.

If the agreement made through ext msg is binding, who has stronger base during this dispute? Who likely will win if this goes to the court?

Thanks for your advice.

L.J.
 


LdiJ

Senior Member
What is the name of your state? MA

This is a dispute between a real estate agent "A" and her client "C". C buys a $1,000,000 house first and then sells his existing $600,000 house.
They used text message to agree the follows:
"A" agrees to refund $5000 from earned commission to "C" for purchasing the first house if "C" allows "A" to represent "C" for selling his house.

They didn't reach any agreement about how much "A" should earn for the commission for selling "C" house. So here is the dispute:

A's argument: the agreement to refund the $5000 has condition to let A sell C's house, so $5000 will not be paid before a new agreement to sell is signed which should have commission 2.5%.

C's argument: $5000 should be paid first. Then signing a new agreement to sell, the new agreement to sell should only have 1.5% as commission.

If the agreement made through ext msg is binding, who has stronger base during this dispute? Who likely will win if this goes to the court?

Thanks for your advice.

L.J.

Both of the commissions under discussion (2.5% and 1.5%) seem quite low. I personally don't see C prevailing on a commission of only 1.5%, particularly if that includes refunding $5000.00 on the commission of the previous purchased house. There is nothing to indicate that they had come to an agreement for that low of a commission rate.

If I were A I would tell C to pound sand and find someone else to market/sell his home...and keep the commission rightfully earned on the purchase of the new home.
 

quincy

Senior Member
Real estate agent A would be making a mistake to give up $5000 of his already earned commission for a low commission on a house that might not sell within the listing period.

Real estate agent A should discuss this with his Broker because his broker is entitled to a percentage of any sale and, therefore, has a personal interest in the real estate contract’s terms and conditions.

I agree with LdiJ that the commissions are unusually low.
 

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