Q: Trying to understand the following passage from a california realtor listing agreement
From the passage below has the realtor performed per the listing agreement simply by bringing together a willing buyer at listing price or, does the seller have to agree to the sale and terms for the agent to earn her commission?
1) If during the Listing Period, or any extension, Broker, cooperating broker, Seller or any other person procures a ready, willing, and able buyer(s) whose offer to purchase the Property on any price and terms is accepted by Seller, provided the Buyer completes the transaction or is prevented from doing so by Seller. (Broker is entitled to compensation whether any escrow resulting from such offer closes during or after the expiration of the Listing Period, or any extension.)
A:
Thank you for asking the question!
Each case needs to be evaluated with its own specificity to see if the agent/broker can collect commission after procuring a buyer under listing agreement.
In general it is possible for a broker/agent to recover their compensation fees if principal (seller) refused to proceed with the transaction even though the broker produced the buyer willing and able to buy or lease the property according to the terms of the listing agreement.
Some of the situations that buyer does not have to pay the commission are as below:
1. Listing agreement with condition on closing:
If in the listing agreement, the condition for compensation is closing, you may not have to pay the commission.
2. "Procuring cause":
If the seller can show that they have found the buyer independently from the broker/agent's service, and there is no "exclusive right-to-sell" in the agreement.
This is merely discussion of general laws and not a legal advice. For a comprehensive advise, more specific facts and investigation are needed. I recommend you consult with an attorney in more detail.
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A:
Based on the passage you provided from the California realtor listing agreement, the realtor (broker) is entitled to their commission if they meet the following conditions:
1. During the listing period or any extension of the listing period, the broker, a cooperating broker, the seller, or any other person procures a buyer who is ready, willing, and able to purchase the property.
2. The buyer's offer to purchase the property is accepted by the seller, regardless of the price and terms offered.
However, there are two important points to consider:
1. The buyer must complete the transaction. If the buyer fails to complete the transaction, the broker may not be entitled to their commission.
2. If the seller prevents the buyer from completing the transaction, the broker is still entitled to their commission.
Additionally, the broker is entitled to compensation whether the escrow resulting from the accepted offer closes during or after the expiration of the listing period or any extension.
In summary, under the given California realtor listing agreement, the seller must accept the buyer's offer for the broker to earn their commission, provided that the buyer completes the transaction or is prevented from doing so by the seller.
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