Legal Question in Real Estate Law in New York

Q. Do we have the right or can we tell the realtor that the only way that we will have a new contract drawn up with the negotiating asking price is by lowering their asking commission without the realtor coming back at us with a lawsuit?

A. It is probably a good idea to speak to the realtor, explain the situation, and have them agree to compromise their commission if they want this deal to go through. Remember, any agreement between you and the realtor should (must) be in writing.

Mike.

The tricky part here is that the broker--whom you distrust--did produce a purchaser who appears ready, willing and able to perform on your terms. If the purchaser did not meet the asking price, then the broker has no claim against you, because the broker did not produce a truly ready, willing and able purchaser before the brokerage contract expired. If I am reading between the lines correctly, the purchaser is still not reaching your asking price, so your exposure to the broker is minimal.

Assuming that this is a single broker deal--under which the broker would have gotten the whole 6% commission--I would try the high road. I would tell the broker that you are talking to that purchaser and you're prepared to recognize him as the broker so long as he agrees that he gets a 4% commission on this deal. This way, you get the broker to help the purchaser with the mortgage and home inspection process, you pay less commission and he realizes something from this busted deal. Speak to a lawyer before finalizing the brokerage agreement, because there are a few details that need to be addressed.

I agree with Kevin Connelly. However, if you go ahead and sell your home without reaching a written agreement with the broker who introduced you to the buyer, you can be assured you will be sued by the broker for a commission. Why would you risk a lawsuit?