Legal Question in Real Estate Law in Massachusetts

Recently I posted my house for sale by owner. I got a hit right away and they wanted to see the property. I was asked if they could bring their buying agent with them. I said ok. Well they saw the house and loved it. Put in an offer. But the offer had a 2% clause in there for the Real estate agent to be paid by the seller. The agent never during the showing announced or disclosed that she would charge a commission to the seller. I had to refuse the offer mainly because of that clause. Is this practice ethical by realtors? If I had known before hand I would have refused to allow they realtor access to my property.


Asked on 7/13/10, 3:00 pm

3 Answers from Attorneys

Christopher Vaughn-Martel Charles River Law Partners, LLC

Congratulations on getting an offer in this real estate market! My first reactions to your question are that (i) a realtor's fee of 2% is slightly lower than the average, (ii) most buyers have real estate agents, and by refusing to pay a realtor's commission, you are missing out on the great majority of buyers, (iii) your refusal to allow realtors onto your property while you are trying to sell your house seems counterproductive.

I strongly recommend that you retain the services of an attorney to assist you with this sale. My real estate colleagues charge a flat fee, and it could make a huge difference in your home selling experience.

Read more
Answered on 7/13/10, 6:16 pm

It is not unethical. You have two alternatives in such a situation, you can counter by simply increasing the counter offer by adding an additional 2.1% of the net price you want to get, such as if you want $100,000 and you were offered $95,000 with a 2% commission, then counter at $102,100 and disregard the commission.

I would suggest you get an attorney to assist you. Most attorneys will assist you for a flat fee.

Please feel free to contact me if you have additional questions without obligation.

Read more
Answered on 7/13/10, 6:52 pm
Joseph Murray Joseph M. Murray, Esq.

Congratulations. You have a right to refuse to pay the buyer's agent. Let the buyer pay their own agent if they are working exlusively for the buyer and not you. Good Luck!

Read more
Answered on 7/14/10, 7:18 pm


Related Questions & Answers

More Real Estate and Real Property questions and answers in Massachusetts