Legal Question in Real Estate Law in Virginia
My real estate contract says that in the event of default by either party, in addition to other damages, the defaulting party must pay the Broker's Fee in full. Is that allowed by VA law or is there any restriction on real estate agents who try to sue to recover this? It is actually because of our agent that we need to back out of the contract as purchasers. We are willing to give up the $10000 earnest deposit, but it looks like this only relieves us of liability to the Seller. It seems extravagant to pay the brokers who didn't make the deal happen.
1 Answer from Attorneys
Parties contracting in the Commonwealth are generally free to include
whatever provisions they wish which do not violate the law and there would appear to be no reason as to why the contract which you've described for the sale of property should be an exception to this general rule.
So, naturally, the question then arises as to why you agreed in the contract to
pay this "Broker's Fee in full" in case of a default by one of the parties?
Perhaps, the agent, if responsible for your default, should be picking up this
fee to the broker.
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