If a buyer and seller agree to terminate an agreement of sale prior to settlement, is the seller or buyer liable to pay fees to listing brokers?

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If a buyer and seller agree to terminate an agreement of sale prior to settlement, is the seller or buyer liable to pay fees to listing brokers?

Asked on June 22, 2011 under Real Estate Law, Pennsylvania

Answers:

MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 12 years ago | Contributor

If the purchase and sale agreement is terminated by mutual decision for whatever reason, the costs associated up to the closing will still be there if there are actual costs like appraisals and processing fees for let's say the loan itself to purchase the property. Now, your separate real estate broker/agent agreements will tell you if you are still required to pay any monies to the agents. Usually you don't pay until such time as closing but again, you may have negotiated to have a ready, willing and able buyer for example, and the agent provided one, then you may still be required to pay.


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