Full question:
My agent wants me to sign an "Exclusive Buyer Brokerage Agreement" but I am concerned about a clause that she claims is standard, and cannot be removed. Under section five (Commission) there is a line that reads: "In the event the prospective seller or listing broker does not pay Broker a commission, then Buyer shall pay Broker at time of closing, a commission of 6% of the purchase price of all real property in Georgia which Buyer purchases or contracts to purchase during the term of this Agreement whether or not the property has been identified to Buyer by Broker. <br /><br /> The first part is what I really have questions about. If the Seller refuses to pay my Broker's commission, am I really obligated to do so? Is it true that this clause cannot be removed from the contract?
- Category: Contracts
- Subcategory: BuySell Agreements
- Date:
- State: Georgia
Answer:
This clause can be removed from the Agreement. It is negotiable. For example, you can specify the commission structure, such as a percentage of the selling price or conditions under which the broker earns a commission. If the seller or listing broker does not pay the commission, you may be required to pay it, but this obligation can be negotiated in your contract.This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.