REO brokers might be familiar with this encounter. We have a property listed. It sells. We open escrow. Everything runs smooth (in fact one of our more smoother transactions) up until we've CLOSED. That's right, we didn't run into ANY SPEED BUMPS until the escrow CLOSED--and it was my FAVORITE TYPE of DISAGREEMENT--a disagreement on COMMISSION. Can you say, "Arbitration?"
With REO properties the sellers--the BANKS--will always PAY COMMISSIONS BASED on NET SALES (the sales price MINUS ANY CONCESSIONS ie., repairs, credit backs etc.)
As REO Brokers WE CANNOT ASSUME that this is SPELLED out in the BANK OWNED ADDENDUMS. These addendums are written up by attorney's DEFENDING THE BANKS--NOT us as agents. Which is FINE. It is our responsibility to defend ourselves here people--WE ARE ALL ADULTS. I'm not bashing the banks. I don't bite the hand that feeds me.
Therefore I have had to draft up my own addendum specifically clarifying this AND I've had to add this to my private MLS remarks as well. My personal REOheaven Addendum is NOW required WITH EVERY OFFER SUBMITTED. This addendum can be found @ http://addendum.reoheaven.com
After we closed escrow and prior to mailing out closing statements the escrow co. emailed the selling agent and I revised commission agreements which reflected the commissions being adjusted AFTER the concessions were made.
Needless to say, the selling agent made a HUGE FUSS over a difference of about $500.00 on a $10,500.00 commission check. In the grand scheme of things I would have probably let it go, BUT I also see the priciple. I MISTAKENLY assumed that this clarification on the commission was on the bank addendum and I advised the selling agent to review one more time. As it wasn't there the burden of proof was now on my shoulder.
To make a long story short, we agreed to disagree. I still don't know where this one is headed. I'll keep everyone posted.
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