We are the listing agents of a rather large subdivision and have a written listing agreement w/ the seller to be paid a 6% commission on every home at time of closing. We have 7 homes in escrow currently that are due to be closed tomorrow. The seller is now refusing to pay the 6% which is in our written and signed contract. This isn't legal for him to alter this contract, am I right? He cannot alter anything that is already under contract and in escrow, right? What do you suggest, and what recourse do we have?

Thanks, All!!

Erik:

excon

Hello Erik:

You're right, assuming we have the complete story.

It seems to me that you can stop the closing. Or, to rephrase that properly, HE is stopping the closing because he's refusing to adhere to the contract. As a matter of fact, the escrow agent CAN'T close sale if the parties don't agree, because they make out your check, not the seller.

That kinda puts you in the driver’s seat.

excon

erosinsd

EXCON,

Thank you for your words. I assume(d) that the seller has no right to alter the commission percentage on contracts already in escrow. If the seller wishes to alter the commission from here on out on things still listed, that's a different story - that all becomes negotiable. BUT, anything already under contract should adhere to the original listing agreement, correct?

And yes, you DO have the full story. Unfortunately, the builder is greedy and is not recuping the profits he initially thought he would, and is not trying to cut costs everywhere he can see fit, including our commission...

E