Questions & Answers
A buyer backed out and is paying a penalty—can I still claim my 2% commission?
Dear Lawyers,
A buyer backed out of the deal due to low funds, and he is ready to pay the 10% penalty.
Am I eligible to claim my 2% commission from the seller?
Thank you for reaching out with your question regarding the commission in your real estate deal!
In situations like this, where the buyer backs out and agrees to pay the penalty, the terms of your agreement with the seller will primarily govern your eligibility for the 2% commission.
Typically, if the sale does not proceed, the commission might be subject to the specific clauses in your contract with the seller.
However, since the buyer has accepted the penalty, there may be a basis to claim your commission.
To provide you with the most accurate advice and to explore all possible options, I would recommend reviewing the agreement you have in place.
This will ensure that your rights are protected and you receive any commissions you are entitled to.
Please feel free to reach out to me on WhatsApp or phone at [---------] to discuss further, or you can email me at [---------]. I’m here to help you navigate this situation effectively.
