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11 Lawyers are online now. Type your question here...we are under contract with agent until Dec 31st. We took home off market mid September. We have been approached by a neighbor who has an uncle who wants to buy home. If this transaction takes place after the first of year, are we obligated to pay commission
Submitted: 7 months ago.Category: Employment Law
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11/27/2017
Employment Lawyer: Lucy, Esq., Lawyer replied 7 months ago
Lucy, Esq.
Lucy, Esq., Lawyer
Category: Employment Law
Satisfied Customers: 32,264
Experience: Former judicial law clerk, lawyer
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Hi,

I'm Lucy, and I'd be happy to answer your questions today.

It depends on the specific language of your brokerage agreement. If you owe a commission only for buyers found by the agent, you could close the deal now. If it says that you're obligated to pay a commission for any offer accepted prior to December 31, then you would have to wait until after that date to even tell the buyer that you're planning to sell the house to them. The exact language is important here. You should be okay if the purchase and sale agreement is executed in January, but read through the agreement first to see what exactly will trigger your obligation to pay the broker.

You'll also want to make sure that there isn't any language saying the agreement will renew unless you specifically cancel it.

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Employment Lawyer: Lucy, Esq., Lawyer replied 7 months ago

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