Saturday, May 19, 2007

BROKER ENTITLED TO COMMISSION

The home sellers decided to list their house for sale with a local Burbank Real Estate Broker. The home was listed for $650,000.00. The listing contract contained a provision that if the listing agreement expired and the house was not sold then the broker still may be entitled to a commission if the house had been sold to a prospective buyer that later bought the house after the expiration of the listing agreement. Just because the buyer bought the house after the listing had expired does not mean that a commission is not owed.

Many prospective sellers tell their agents that if the house is shown to a buyer by the broker then the broker will be entitled to a commission. The enforceability of the agreement goes into basic contract principles and whether or not the broker expended time and other resources on behalf of the seller in order to market the property and whether the seller agreed that if the property was sold to someone it had been shown to that a comission would be due to the broker.

If you are faced with this problem you need to consult a lawyer in order to determine your rights. In Burbank this can be a problem for the unwary seller. Review all contracts closely and have your attorney in Burbank help you with all contracts.

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