REO Sale - Seller refusing to pay commission

**travisofthedesert** · 06-27-2011, 05:54 PM

I am representing a buyer, who happens to also be my father in a purchase of a SFR that is an REO. I presented the offer to the listing agent and she returned with a counter-offer from the seller(asset manager). Part of the counter-offer requires that I give-up my claim to a commission because I am related to the buyer. This is crazy right? I have only ever heard of forgoing commission when you represent yourself because you are acting as the principal, not an agent.

The listing was published on the MLS as paying 3% to selling office, and there were no exclusions from this published commission. I have also confirmed with the listing agent that her agreement(listing agreement) with the seller also did not have ANY provisions for exceptions on commissions.

I have talked with a few people about this, including an attorney from CAR and everyone says they have heard of this and that the seller always gets their way because they are a bank and no one will question them.

I have been selling RE for over 7 years in California. I have heard all kinds of crazy stories and have been in legal battles over a few deals, but this is a first for me.

Anyone have any experience with this? What did you to? What would you have done differently?

**Greg** · 06-28-2011, 06:35 AM

If I was helping my Dad by a house I would never have expected a commission to begin with.

Submit a new offer and subtract the amount of your commission from the purchase price. Your father gets a discount and you get to pay him back for all he did for you.

There is no legal recourse for commissions because commissions are handled by the MLS. The best you could do is go after the listing agent and their broker for the commission they offered in the MLS and you would have to do this through the MLS.

**MSC** · 07-14-2011, 08:42 PM

California makes up alot of laws regarding it's real estate market.

**kayakalp** · 08-01-2011, 06:11 AM

Hello folks thanks for sharing with us.

**travisofthedesert** · 08-01-2011, 09:45 AM

Thank you for your feedback, Greg. We are closing this one today, with commission. The bank and the listing agent finally agreed that it was in their best interest to pay the commission rather than risk losing another buyer. We were the third escrow...