Thread: how to divide a forfeited deposit

Funny question. What makes you think agents are entitled to any part of that non-refundable deposit? They are not. Unless the seller wants to tip them.

Deposit is non-refundable because it is intended to cover the seller's damages of taking the property off market. For example, he might have missed another great offer. Agents suffered no damages.

In Colorado it is split 50/50 as stated in the listing agreement.

Our listing agreement splits it between seller and broker with the split capped at the full commission amount for the broker. What does your listing agreement say.

in NJ we only collect a good faith deposit which is refundable unless the buyer is in breach of contract, the listing agreement has no mention of this deposit.

It should be spelled out in the listing agreement. I always state it is 50/50, and I do deserve my part of a non-refundable deposit. I did the work to bring the buyer to my seller.

Originally Posted by carlam

It should be spelled out in the listing agreement. I always state it is 50/50, and I do deserve my part of a non-refundable deposit. I did the work to bring the buyer to my seller.

Yes you brought the buyer to the seller, however you are not out another months mortgage payment from taking the property off the market. I don't see how the agent is entitled to the deposit.

That's true, I am not out another month's mortgage. My client's are informed of this 50/50 on our contract; I bring the buyer, I have done as I said I would. It's part of doing business. I service my client's property, there are costs/time associated with this process. I deserve to be paid for my services.

Just my opinion, the money belongs to the seller. Even if it is stated in the listing agreement, do you specificly tell your client that if it happens that 50% will go to you before they sign it? A buyer placing a deposit down should be kept in escrow, and is put down as a deposit on the property. As an agent you don't own the property, the seller does.

I understand that you should be paid for your services. Did you provide a willing and able buyer? Obviously not since they backed out of the deal. Even though it is in the listing contract, I personally feel it is stealing from your client and not providing the fudiciary responsibility you have.

Okay, I went back to review everyone's post on this and I see where it is going. I understand it is a "touchy" subject and I feel the pain that seller's feel - this has happened to me in one of my own properties. There are a magnitude of reasons why a sale falls thru, sometimes it is out of the listing agent's control. Difficult seller, difficult buyer, can not get a mortgage.... the list can go on forever. I do, to the best of my ability, try to keep a contract together to close it. If it is at all questionable when the offer is presented; I tell my seller's I think it is questionable. I am a full service agent and I consider myself a professional. My client's interest is always first. This is why I am worth being paid!