Comission before the closing

[eyeinthesky20]

What is the name of your state? FL Is it usual for the agents to take their commission in advance of a sale. Both my sellers agent and mine took their advance (close to 20,000) 3 weeks ago and were not closing until monday. Could this be why their dragging their feet and we were supposed to close last week, but our buyer and us have been the ones running all over town, getting all the papers together instead of them? Thanks

 

[BradleyS]

Wow.....

What kind of agreement did you sign with the brokerage that would let the Brokerage receive their commission prior to closing? (Exclusive, Agency, Dual or Transaction Brokerage)

Who did they receive their commission from (i.e. closing company, seller)?

Did you use a closing company?

Was there any financing involved?

No matter what type of agency agreement you signed with the Agent's Brokerage, they still have a responsibilities to you. But we'll get to that later......Post back with the answers to the questions I asked.

 

[eyeinthesky20]

answers

We signed a transaction broker agreement I dont see anywhere that he can get an advance, but he knows my buyer and figured he would be able to close, because he was able to get a mortgage.
He told us he got it from his real estate company ( big name company 5 letters). We are also using a title company and should close tommorow, unless things get messed up again. I should have never dealt with a friend, but I will learn next time.

 

[BradleyS]

Advancing commission from pending sales is not uncommon anymore........didn't used to be this way but there's money in it like all those check cashing places.

I would recommend after closing that you complain in writing to your Real Estate Commission and Local REALTOR board office.

Send me a PM after you close and I will send you the links and point out a few things.

Good Luck.

 

[eyeinthesky20]

Thank You

Thank You, were still waiting to close and now they said it might be Thur the lastest, I was told last week Monday- today would be the latest. I am so ready to leave South Florida. I never had such problems on two other houses we've bought, but I will write to you after closing for the links- Thank You
Jeanine