Bloomfield Hills, MI asked in Real Estate Law for Michigan

Q: Our house is for sale and we have it listed with an agent. When our agent was out of town a friend recommended our home

To someone who decided to buy it. Are we obligated to pay the commission to the realtor?

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2 Lawyer Answers
Vincent Gallo
Vincent Gallo
Answered

A: The answer will depend upon the terms of the Listing Agreement you have with your Broker. Read it carefully.

David Soble
PREMIUM
David Soble
Answered
  • Farmington Hills, MI
  • Licensed in Michigan

A: If you have a listing agreement with your real estate agent, they are entitled to a commission as most listing agreements commonly protect the agent and their commission for events such as these. You should also be aware that there is usually a 180 day protection period even after the listing expires. This means that within 180 days after the listing expires, should a buyer who had previously seen the property during their listing, and later purchases the home, the agent is still entitled to their commission. This is because they are considered the 'procuring cause" of the sale.

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