buyer may not meet closing deadline

[military spouse]

What is the name of your state? Arizona
Help! My wife listed our house and accepted a contract (while I was in Iraq) with a non-existent POA and realtor didn't care. When I returned, I did sign the sales contract due to threats of legal actions. Now, 61 days later the buyers may not make the on/before closing date. Is this an out for me? The realtor now says that I will still have to pay him the commission because they brought us a buyer. His broker says the same thing. Any opinions would be helpful.

 

[wanabath]

Can someone try to explain to me what the deal is with all these realtors that have been trying to demand commissions out of people, without closing the deal.

 

[Pretzlgl]

Yes. Realtor = used car salesman.

 

[kingston]

Greed

Thats all there is to it Greed and collecting commissions

 

[annefan]

I don't know about Arizona but, in PA if the closing date comes and goes (without the house closing) and the buyer and seller do not sign an addendum to extend the closing date, the contract is void. Which in PA means no commission and the hand money is returned to the buyer.

Void? In PA, no it doesn't. It means somebody is in default.

 

[annefan]

Yeah, someone may be in default but, the contract is void.

And tell me, how will a lawsuit be brought against someone over a contract that is void?

 

[annefan]

However, there is language in the contracts that states if we present the seller with a ready, willing and able buyer who is offering full price, than a commission is owed. We do not enforce this clause but many companies do and the seller is aware of this clause before signing the contract (if he took the time to read the contract.)

Where exactly do you find that clause in the PAR Standard Form Exclusive Right to Sell Real Property?

 

[Bigfoot]

Who told you the buyers may not be able to meet the closing date? The lender or the buyer? In any event, look at your paperwork and determine if you will be able to keep the earnest money if the buyer does not meet his/her obligation by closing at the agreed upon closing deadline. And, if they are saying they can't close until January 2005, find out why. You have a contract in hand that you might best be served to try to complete, rather than expecting that the other potential 'offers' may provide you with more money.

All real estate people are not necessarily 'greedy', but they do work hard for their money. This includes driving clients around at $2.00 per gallon, and perhaps having clients who 'renege' on a deal at the last minute--in which no compensation is paid.

When one isn't paid, it's considered either volunteer work, charity, bad luck or bad risk.

 

[annefan]

However, there is language in the contracts that states if we present the seller with a ready, willing and able buyer who is offering full price, than a commission is owed. We do not enforce this clause but many companies do and the seller is aware of this clause before signing the contract (if he took the time to read the contract.)

And again, I ask, where exactly do you find this clause in the PA Standard Form? NO commission could possibly be owed to the broker just because we present the seller with a ready, willing and able buyer who is offering full price. A seller must ACCEPT THE OFFER IN WRITING in order to be legally binding. Go back to real estate school.

 

[annefan]

We do not enforce this clause but many companies do and the seller is aware of this clause before signing the contract (if he took the time to read the contract.)

Perhaps the reason you and your broker do not enforce this clause is because you don't have a snowball's chance to legally enforce it. There are stipulations and requirements to collecting (earning) a commission and the most important phrase taken from Paragraph 7: (on your standard form, it is typed in BOLD print)

Seller will pay Broker's fee if Property, or any ownership interest in it, is sold or exchanged during the term of this Contract by Broker, Broker's salepersons, Seller, or by any other person or broker, at the listed price or any price acceptable to Seller.

And what, pray tell, do you think the terms "is sold or exchanged during the term" and "ACCEPTABLE" means?

 

[annefan]

And what does "time is of the essence" mean?

In layman's terms, it means that if the parties don't have their rears in gear pertaining to the contingencies, the default clauses apply!

 

[annefan]

Uh huh.

PghREA = used car salesman

 

[seniorjudge]

What is the name of your state? Arizona
Help! My wife listed our house and accepted a contract (while I was in Iraq) with a non-existent POA and realtor didn't care. When I returned, I did sign the sales contract due to threats of legal actions. Now, 61 days later the buyers may not make the on/before closing date. Is this an out for me? The realtor now says that I will still have to pay him the commission because they brought us a buyer. His broker says the same thing. Any opinions would be helpful.

Here is what I get from your statement of the facts: You and your wife signed a sales contract agreeing to pay a real estate agent a commission if that agent found you a buyer who was ready, willing, and able to buy your house. If the real estate agent finds you a buyer who is ready, willing, and able to buy your property, then you will owe commission, just as you promised. If the buyer is NOT ready, willing, and able to purchase your property, then I do not see how an agent could expect a commission.