Capac, MI asked in Real Estate Law for Michigan

Q: Our real estate broker is charging a base of $500 and this was not disclosed verbally or in writing.

Contracted to sell for over $20,000... offer accepted at 16,000... house caught fire due to weather. Buyer dropped price to $4000. Agent is broker for us and buyer. 6% comission and 3% comission was in writing.. however, that would've been only like $240.. being charged $500 which was not disclosed in writing or verbally and when questioned about it broker said the office charges a minimum $500 per house for admin costs... which makes us feel like they are taking advantage of us more than the buyer is. So in the end our walk away will only be around $1900.

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1 Lawyer Answer

David Soble

  • Farmington Hills, MI
  • Licensed in Michigan

A: Sometimes in the property listing agreement it will say the commission or fee is "x amount, but never less than $500." Without seeing your documents, this is my impression of why the fee is what it is. If you need more information, go to

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