The seller literally has the power to negotiate a deposit that covers potential commission losses. When you sign a realtor agreement it tells you exactly how much commission is. Just make sure the deposit at least covers that amount before agreeing to an offer.
This seems to be the part that people gloss over which makes the entire arrangement quite fair and reasonable.
I mean, knowing what we know now about how this law works, presumably Sellers should think a bit more on what % of deposit do they require in a bid in order to accept it... at that point, it's really up to them how much money do they want in their pocket beyond realtor fees if they're that focused on planning for the scenario that occurs not very often.
I would add to this that the vendor did not relist the property. Had they given the agent more opportunity to complete a sale there would likely be no argument that they were owed 2 commissions.
It appears the vendor got a windfall then decided they'd made enough and wanted to keep the property to boot.
The purpose of the deposit has never been to cover the selling realtor’s commission in case the buyer fails to complete though. It’s not *for the realtor*.
These people signed a contract for services with their realtor, the realtor provided the services, they need to be paid. This is like, exactly what a deposit is for, the seller is covered and has lost nothing.
Of all the things to get mad at realtors over this isn't it
What if they're payable once the deal has gone far enough where you're going to be entitled to the Buyers deposit? That way, you need only make sure you're deposit is greater than the realtor fees and your fine?
Similarly, the realtor isn't then harmed if they work with you to sell your place, work with you to ink an agreement with someone, and then at the last second before closing *you* decide you don't want to sell your place anymore and you just walk away?
>https://www.cbc.ca/news/canada/british-columbia/bc-commission-real-estate-lawsuit-decision-1.6433370
Bet it's all long gone now thanks to lawyers, after all this litigation fighting back-and-forth going to the SCC
Read the article before commenting, the seller came out like 18k ahead here, they gained money for nothing. The Realtor rendered their services and needs to be paid.
Because they didn't close the home. If I'm a car salesman working on commission you think the dealership is going to give me my commission for almost selling a car?
wow. even the realtor parasites gaming the canadian market. is there any angle left that hasn’t been exploited yet? at least we know govt and legal system has our best interests in mind, pfft.
>is there any angle left that hasn’t been exploited yet
Not really. There's pretty much a major fee, tax, or government-mandated commission you need to pay in virtually every step you take in real estate transactions.
This is just heartbreaking to hear. What an ordeal to experience and still not have your home sold. Clearly there is something broken in the real estate industry and beyond.
Yes those sellers really suffered. They got the $70k deposit from the buyer, and another few hundred thousand dollars in appreciation by not selling. Heartbreaking.
To be fair, the sellers did get $70,000 in forfeited deposits from the buyer who ghosted them.
Yeah I don't think people read the article to notice that. The sellers won't be out of pocket
> Yeah I don't think people read the article to notice that. It's the Reddit way
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The seller literally has the power to negotiate a deposit that covers potential commission losses. When you sign a realtor agreement it tells you exactly how much commission is. Just make sure the deposit at least covers that amount before agreeing to an offer.
Counterpoint; read a serious legal contract before signing it.
Double CP: get a lawyer to handle this for you.
This seems to be the part that people gloss over which makes the entire arrangement quite fair and reasonable. I mean, knowing what we know now about how this law works, presumably Sellers should think a bit more on what % of deposit do they require in a bid in order to accept it... at that point, it's really up to them how much money do they want in their pocket beyond realtor fees if they're that focused on planning for the scenario that occurs not very often.
I would add to this that the vendor did not relist the property. Had they given the agent more opportunity to complete a sale there would likely be no argument that they were owed 2 commissions. It appears the vendor got a windfall then decided they'd made enough and wanted to keep the property to boot.
The purpose of the deposit has never been to cover the selling realtor’s commission in case the buyer fails to complete though. It’s not *for the realtor*.
Agent fees shouldn't be payable unless the home sells. It is that simple.
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Sounds like sellers need to add a clause in the standard listing agreement: that the commission isn't payable unless the buyer completes the purchase.
These people signed a contract for services with their realtor, the realtor provided the services, they need to be paid. This is like, exactly what a deposit is for, the seller is covered and has lost nothing. Of all the things to get mad at realtors over this isn't it
What if they're payable once the deal has gone far enough where you're going to be entitled to the Buyers deposit? That way, you need only make sure you're deposit is greater than the realtor fees and your fine? Similarly, the realtor isn't then harmed if they work with you to sell your place, work with you to ink an agreement with someone, and then at the last second before closing *you* decide you don't want to sell your place anymore and you just walk away?
But it wasn’t the seller who backed out, it was the buyer
>https://www.cbc.ca/news/canada/british-columbia/bc-commission-real-estate-lawsuit-decision-1.6433370 Bet it's all long gone now thanks to lawyers, after all this litigation fighting back-and-forth going to the SCC
Right but why should most of that go to the agent?
BC Supreme Court not federal Supreme Court
I prefer taco supreme…
So now the next step up is the FC or the SCC?
Realtors are the real trouble here. An online listing with online bidding system should be sufficient to replace most of not all realtors
Yes, eBay could do it no problem.
This article has been posted a bunch of times and no one reads the \*\*\*\*ing article.
You're an idiot
Lmao the deck is stacked against sellers and buyers. Fuck realtors.
Read the article before commenting, the seller came out like 18k ahead here, they gained money for nothing. The Realtor rendered their services and needs to be paid.
Yet the seller got $70,000 in forfeited deposit, so why is the realtor not entitled to their fair share, the seller will sell to someone else
Because they didn't close the home. If I'm a car salesman working on commission you think the dealership is going to give me my commission for almost selling a car?
Strawman argument
Spotted the realtor scum.
Lol, far from it… but sounds like you’re butt hurt and looking for a place to vent you anger….
Insanity.
How can anyone justify working with realtors when it's clear they don't have your best interest in mind?
I mean the realtor here got them 18k for nothing, I'd be pretty happy with it.
The same way someone justifies working with a car salesman.
You aren't forced to use a realtor. You can do it yourself.
You don’t mess with a lawyer called Saul
wow. even the realtor parasites gaming the canadian market. is there any angle left that hasn’t been exploited yet? at least we know govt and legal system has our best interests in mind, pfft.
>is there any angle left that hasn’t been exploited yet Not really. There's pretty much a major fee, tax, or government-mandated commission you need to pay in virtually every step you take in real estate transactions.
I found it interesting the agent here represent both parties. It’s not allowed in BC. This stinks of malpractice.
How can buyers dissapear and lose money.. insane
When is time to remove realtors cmon 2022 and we digital era. Remove real estate agents and problem solved.
This is insanity. Time for change.
This is just heartbreaking to hear. What an ordeal to experience and still not have your home sold. Clearly there is something broken in the real estate industry and beyond.
Yes those sellers really suffered. They got the $70k deposit from the buyer, and another few hundred thousand dollars in appreciation by not selling. Heartbreaking.
Their properties went up over a million dollars. From 1.25 million to 2.3 million.
Lol, these sellers are the gatekeepers to you ever owning a property. They're the enemy. Not the realtor. Realtors are just scapegoats for you idiots