Legal Question in Real Estate Law in California

I purchase a California foreclosure condo at aution and had a 2% commission agreement with a Real Estate broker.

The Broker (who was the former owner of the property) told me of the liens on the property, including the HOA lien. She informed me all liens would be extinguished. But now after over 5 months the HOA lien has just recently been removed and the Broker is now asking for full payment. I informed the Broker I was not willing to pay the full commissions due to the lien on the condo. She wants the full 2% and has threaten to take me to small claims. Can she do this?.... as the standard California Real Estate contract we signed states we need to go to arbritration. Also, the agreement does not say when she will be paid. Can I pay her when or if the property is ever sold?

Thank you.


Asked on 5/09/12, 1:14 pm

1 Answer from Attorneys
Anthony Roach Law Office of Anthony A. Roach

The whole thing sounds fishy to me. If the broker was the former owner, but the property had been foreclosed, then why were you dealing with the broker? You should have been dealing the broker for the foreclosing lender or third party who purchased the broker. If you hired a broker to find it for you, then the broker would have been a buyer's broker, who usually agrees to split a portion of the commission with the listing broker.

I suggest having an attorney review the agreement and going over the matter in some detail with you.

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Answered on 5/10/12, 9:54 am


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