Commission Risks on Power of Sale in Ontario

By
Commercial Real Estate Agent with RE/MAX West Realty Inc., Brokerage (Toronto)

Commission Risks on Power of Sale

Question:

If I'm offered a Power of Sale listing that in my opinion will sell for less than the first and second mortgages combined, is there any way to ensure I will get paid (and more importantly be able to pay co-op broker)?

Answer:

You will notice that somebody here is not getting paid. That means your commission is coming out of their share.

You'd better make sure that they are onside with your commission otherwise it will be challenged. Most of the time, it's not challenged which, of course, is the reason it goes through smoothly in some cases. Who knows about this case!

The Bank holding the first might be agreeable to pay out of their share. This way, you would be guaranteed.

If your money is “coming from somewhere” in the deal, this just might not work.

Be careful, do the math, before you take it on.

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Home Buying
Location:
Ontario

Post a Comment
Spam prevention
Spam prevention
Post a Comment
Spam prevention

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
1,370,305

Brian Madigan

LL.B., Broker
Ask me a question
*
*
*
*
Spam prevention

Additional Information