If my home sale does not close successfully, would I have to pay the buyer agent commission?
No, if your home sale does not close successfully, you typically would not have to pay the buyer agent commission. Here’s why:
Buyer Agent Commission and Unsuccessful Sales:
Contingent on Closing:
- Commission Payment is Conditional: Buyer agent commissions are generally contingent on the successful closing of the sale. This means that if the transaction does not close—for example, due to a failed inspection, financing issues, or a buyer backing out—the commission is not owed.
No Sale, No Commission:
- Standard Practice: In real estate transactions, it is standard practice that the commission to both the listing agent and the buyer agent is only paid upon the successful closing of the property. If the deal falls through for any reason, the seller is not required to pay the commission.
Contractual Agreements:
- Review Your Contract: It’s important to review the specific terms of your listing agreement and any agreements you might have with the buyer’s agent. These documents will outline the conditions under which commissions are paid. However, in most cases, these agreements stipulate that commissions are only paid if and when the sale closes.
Summary:
You do not have to pay the buyer agent commission if your home sale does not close successfully. The commission is typically paid only after the transaction is completed and the property sale is finalized.