How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Ray Your Own Question
Ray
Ray, Lawyer
Category: Real Estate Law
Satisfied Customers: 36997
Experience:  Texas Attorney for 30 years dealing in real estate
8534270
Type Your Real Estate Law Question Here...
Ray is online now
A new question is answered every 9 seconds

IN Utah if a buyer backs out once a purchase contract is signed and down payment is made,

Customer Question

IN Utah if a buyer backs out once a purchase contract is signed and down payment is made, does the realtor get a commission from the deposit?
Submitted: 1 year ago.
Category: Real Estate Law
Customer: replied 1 year ago.
There is a clause in my listing contract that my realtor wants me to sign. It says if a seller backs out of signed purchase contract and there is a deposit in escrow ( ie30%) than I have to pay the 7% commission of the sale price. It goes on to say that if the buyer backs out under the same conditions then i owe the realtor her commission too. Is that right? why would I have to pay 7% of the purchase price to the agent if the buyer backs out.
Rememeber that 30% of purchase price is in escrow ( about 180,000.00) usd and is non refundable because purchase contract has been signed and all conditions removed.
Expert:  Ray replied 1 year ago.
Hi and welcome to JA. I am Ray and will be the expert helping you today.
I would not agree to this.You should shop realtors no need for you to pay here if the buyer backs out.This is not normal , you want one that gets commission only if it closes.They are trying to sweeten the deal for them here.I would keep looking for a normal commission listing agreement, contingent on the sale.
Again I think you can do better here, they are trying to go beyond standard practices.
I appreciate the chance to help you today.Please let me know if you have more follow up.Thanks again good luck on selling it again.
Standard contract no such add on..
http://realproperty.usu.edu/files/uploads/repc.pdf
You can find a realtor who will not charge this fee.
Expert:  Ray replied 1 year ago.
If you can leave a positive rating when we are done it is much appreciated.
I would look for a new realtor here and a better commission only if it closes deal.You can do better here this is not standard by any means.Thanks again.
Customer: replied 1 year ago.
thanks - standard practice or not it seems sort of fair that if the buyer backs out and there is a deposit that i get to keep as seller why should the agent not get anything?
Expert:  Ray replied 1 year ago.
Well its a part of the business, they work on commission , they are trying to sweeten the deal.Usually you need the earnest money to pay for the upkeep and taxes for the period you were unable to sell.If you want to agree to this you certainly can.
It is your call but there are realtors that take this on strict commission and even discount the commission in many cases.It is a competitive business.
Thanks again.

Related Real Estate Law Questions