Agent changed agreed upon commission after close?!?

[kfitzger]

What is the name of your state? California. Our listing agent was to receive a 3% commission for the sale of our home and we decided to offer a 3% commission to the buying agent also. Escrow paperwork reflecting this was signed by all parties. When this same agent also became our buyers agent, escrow prepared a revised commission of a 5% total. We understood this to be standard practice when an agent served in both capacities. We signed this new escrow paperwork, but the agent DID NOT (though we understood she had)! By the time we closed, the relationship between us and our agent had grown contentious and she subsequently demanded the full 6% commission post-closing. The disputed funds still sit in escrow - do we have any right to keep these funds or do we have to release them to her? HELP!

 

[Bigfoot]

There is no standard practice. And aren't you speaking of two different transactions? Otherwise your post sounds like the agent served as both your listing and buyer's agent on YOUR property!

 

[kfitzger]

ermm

Our agent did in fact list our home for sale and then represent the buyer of our home - all perfectly legal in california and a HUGE mistake (hence the contentiousness later on!) We understand that when this is the case, the agent regularly takes a percentage off the top as they are receiving "both" commissions. She told us she would take 5% instead, escrow drew up the paperwork and we signed. it wasn't until we closed that she reneged.
does that make sense at all?!?

 

[BradleyS]

The listing agreement that you signed with the brokerage should specify what commission you are to pay the Brokerage.

If the listing agreement is 6%, then it's 6%..........You pay the listing Brokerage the entire amount......then depending on your listing agreement, the listing brokerage MAY cooperate/compensate another buyer's agent or transaction broker(dual agent).

THE REAL TRUTH!
Everyone believes that the seller actually pays commission on the transaction......WRONG. The buyer actually pays for it....they just don't see it on the HUD-1.

If you believe that your RE Agent deserves less when handling both the buyer and the seller, you and the agent should of made a amendment/addendum in writing to the listing agreement for a reduction in commission if the listing Brokerage handled both sides of the transaction.

Other than that, they should be compensated from the disclosed percentage on the listing agreement.