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. Such a clause is negotiable. For example:
V. Broker's Commission
Broker shall receive a commission of _____% of the first $__________________ of the selling price and ______% of the selling price in excess of that amount if:
Broker procures a buyer who is ready, willing, and able to purchase the property on the terms set forth in this agreement or on terms more advantageous to owner;
Owner actually sells the property to a purchaser procured by broker or by any other broker during the term of this listing; or
Within ______months after the termination of this listing, the property is sold by owner or by any other person to a buyer who was first submitted to owner, directly or indirectly, by broker.
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