How can a bank require my agent to reduce her commission in order to complete my short sale?
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How can a bank require my agent to reduce her commission in order to complete my short sale?
The bank isn’t a party to the commission agreement I made with the agent so isn’t their action unreasonable duress and federally proscribed restraint of trade? She is owed $3500 after 13 months of work.
Asked on September 8, 2011 under Real Estate Law, Washington
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
In a short sale, the lender whose loan is secured by the real property must agree to the terms of the sale in order for it to go through because the sales price will not be able to cover the amount owed on the secured loan. As a means of minimizing the amount of its loss on its loan through the short sale, the lender typically seeks to have concessions from various parties involved in the tranaction.
Unfortunately for your real estate agent the lender is requesting a reduction in the commission to be earned as a means of completing the sale. This places your agent in a conflict situation because the agent's obligation is to sell your home as soon as possible for high of a price for fear that the property will be lost in a foreclosure.
What the lender bank is requesting is legal and is all a part of business.
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