If I am in a short sale on my home but decide on a modification instead, am I liablefor the realtor’s commission?

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If I am in a short sale on my home but decide on a modification instead, am I liablefor the realtor’s commission?

I have a contract on my house pending the lender’s approval. The lender has contacted me saying that I may qualify for a modification or principle reduction, I just need to send in the paperwork. My Rrealtor has told me that if I statr a modification now, I would be responsible for his commission. Is this true? I just want to try all options before I move out of my house.

Asked on May 24, 2012 under Real Estate Law, Maryland

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

It depends on your contract with the realtor.  Please read it.  If it states that the commission is not actually earned untiul the settlement or closing takes place then you could be off the hook.  But if it states that the commission is earned when a qualified buyer is found (or something to that effect) then you could be stuck.  Seek legal help.  Good luck.


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