No Commission on Short Sale Purchase

6 Replies

Hi Agents, 

I am a licensed agent in Sothern California and am going through a short sale purchase for myself. I was just informed by the bank that I will not receive a commssion since I am the buying agent and buyer of the property. I have since told the franchise I work for that I will be received zero commission and they are still requiring me to pay the franchise fee of any earnings they would have received from the transaction. Can they do this and is there any way to fight this cost? Thanks for your advice. 

Originally posted by @Joel Owens :

Why not have an agent in your office represent you the buyer and get a referral fee??

I have seen it done that way in the past to get around this issue.

No legal advice given.

 We are in the final stages of escrow which has taken over 3 months to get here so unfortunately that isn't an option. I wish I would have know this before submitting the offer on my behalf.

Not sure how you couldn't know this in advance, it's been a standing policy with most banks for years.  As for your broker's fees, I assume you mean the "transaction" type fees which would be reasonable, and not the say 20% of of 3% they would have expected?

Ive done short sales before but not as a purchase for myself. I was not informed by my office that this would be the case or I would have had another agent sign, representing myself as the buyer. They are taking about 25% of my commission which is franchise fees as well as other cost. Im just wanting to know if this is something that can be waved or common as it is costing me thousands out of pocket. 

I'd guess the broker CAN waive any fee they want.  Whether or not they will...

I don't have my license yet (working on that), but given the circumstances of the transaction (not representing an external client, an innocuous mistake based on inexperience with this type of transaction), I'd probably be looking for a new broker if they wanted to charge me more than simple, reasonable expenses.