If I close my business, am I obligated to pay commission to the realtor when I sell off my equipment?

I own a dry cleaning business and have it listed with a realtor. I have a new job and now want to close down the store. If I sell off the equipment, am I obligated to pay the realtor commission? The building is rented.

Asked on November 11, 2011 under Real Estate Law, Missouri

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

There is no general answer: it depends entirely on what the agreement you signed with the realtor said. It would be legal to have an agreement which would require you to pay a commission in the event you sold off the business's assets (either in total or piecemeal) rather than selling the business as a going concern; it would also be legal to have an agreement that only covers the sale of the business as a going concern. You need to review the contract, and if in doubt about what it means or how it would be interpreted, consult with an attorney.


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