Legal Question in Real Estate Law in Florida

real estate commission

A realtor brought me a buyer for my house but the house did not appraise for the contract price. I can't reduce the price to the appraised price and still pay the realtor's full commission. Since she has refused to take a reduced commission, the contract is now null and void. I am now selling my house by myself at the reduced price, and the buyer she brought wants to buy it. Can I legally sell it to him without paying her a commission?


Asked on 5/14/01, 3:23 pm

1 Answer from Attorneys

Peter Gonzalez Sanchez-Medina, Gonzalez, Quesada, Lage, Crespo, Gomez & MachadoLLP

Re: real estate commission

The contract is not null and void simply because the realtor refuses to reduce her commission. However, if you and the buyer agreed to cancel the contract because the realtor refused to reduce her commission, then the contract may be terminated, but your obligation to pay the realtor's commission may not be void. Under most listing agreements, the seller would still be on the hook for the realtor's commission if the seller and buyer canceled or terminated the contract, especially if such cancellation is for the purpose of avoiding payment to the realtor after the realtor has performed by providing you with a buyer. In most cases, the seller is still responsible for making payment to the realtor if the seller enters into a new agreement with the buyer introduced by the realtor after the listing agreement's term has expired.

On a related note, if the property does not appraise for the amount of the purchase price, generally it does not give the buyer a right to cancel the contract. For instance, if the agreed purchase price is $200,000 and the appraisal comes in at $175,000, the buyer is still obligated to pay $200,000 for the property, unless the contract states otherwise. Of course, if the contract is subject to the buyer obtaining financing, the buyer may not be able to obtain the financing required because of the low appraised value, and, in that event, the deal could be killed by the buyer and, naturally, the realtor would not be entitled to a fee. However, if you close a deal with the buyer you met by way of the realtor, it is likely the realtor will make a claim against you that will be supported by the listing agreement and applicable law. Hopefully, the realtor will be agreeable to accepting a reduced commission and the buyer will agree to a purchase price that is more than the appraised value but less than the original purchase price. Such a compromise will likely be less expensive than civil litigation, which is costly and unpredictable.

Good luck.

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Answered on 6/22/01, 10:33 am


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