Closing docs: Seller owes buyer’s agent commission
Q: I’m selling my house “as is.” The buyer has an agent, but I don’t. With closing approaching, I got my copy of the closing disclosure. It claims I’m stuck paying the commission to the buyer’s agent. Since I had no agent, the buyer’s agent said she’s also acting as the selling agent and claims I signed a form. What can I do? A: Request a copy of that form or contract you supposedly signed. If produced, give it a thorough read to see if the claim is true. If the contract clearly states you agreed to pay the agent part or full commission, you may be technically obligated, as unreasonable as this might sound. Even if it contained something you didn’t agree to (borderline fraud), you signed it, though you could declare the deal off because of such dishonesty and see what happens. They might threaten to sue, but can’t force you to sell.
When buyers suggest a FSBO listing, such as yours to an agent, they’re often steered away unless the seller agrees to pay half or full commission. Yet the agent came to you without verbal mention of any commission, it seems.
It’s the lender who’s required to provide the closing disclosure, or CD, to the buyer. This makes me wonder if the agent/ buyer told the bank to add the commission obligation in there. You should know that the closing disclosure is not a binding disbursement document, according to NAR.
If the only “proof” the agent/buyer can provide you is a copy of the CD, it sounds like you are being defrauded. I also wonder what this agent has done on your behalf in her selfassumed dual role. All she did was dial your number and now she wants a hefty check from you.
I bet the agent also told you such a commission arrangement is standard, which really means an industry or agency average. The notion that a seller is automatically obligated to pay any commission is a fable, even though sellers do pay the commission more times than not.
If you never agreed to the commission, here’s what you should offer: Nothing. If you need to exit the house quickly, you might offer a flat fee equivalent to 1 percent.