What to do if there was a mutual cancellation between the buyer and us the selle but the buying realtor is suing for his commission?

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What to do if there was a mutual cancellation between the buyer and us the selle but the buying realtor is suing for his commission?

Is that legal? And what can we do in terms of the law?

Asked on January 25, 2013 under Real Estate Law, California

Answers:

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

Answered 8 years ago | Contributor

I hate to throw this back in to your court but the seller needs to read his or her contract with the realtor.  When the fee becomes due and owing is what matters here as well as the law in your state - California.  It is my understanding that in your state a broker may be found to be a party to the escrow held and if the contract so states, be entitled to "fees incurred" if applicable.  It may also depend on why you cancelled.  If the buyer could not get financing then the contract failed.  The realtor would not be entitled to payment. Get help with your contract.  Good luck.


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