Tuesday Takeaway: What governs the listing agreement?
What governs, the executed contract between the parties or the listing agreement?
The executed contract discloses a 3.0% commission to the cooperating broker. The listing discloses a 2.5% commission to a cooperating broker. Per the contract, I collected 3% for the cooperating broker. Closing is today and the sellers’ attorney says to reduce it to 2.5%. What governs, the executed contract between the parties or the listing agreement?
A purchase and sale agreement that mentions commission does not control the broker unless, of course, the agent or broker signed the contract. Otherwise, the broker has a right to stand on the commission advertised. In the scenario, the seller signed the contract, which was HIGHER than the listing. As such, they might be liable for 3%. Maybe the contract was prepared by the buyer’s broker, who inserted the wrong amount without anyone noticing. It seems to me that the real estate contract is an agreement between the buyer and seller and should not change the listing agreement between the seller and the broker. The “FARBAR AS IS” form states that the commission should be paid under the separate brokerage agreement. Usually, percentage to brokers information is inserted in contracts for the benefit of the closing agent but should not be binding between broker and seller.
If this is a residential contract, the MLS should reflect the amount of the commission that is payable to the cooperating broker. If the listing agreement states 2.5%, you cannot increase that amount to the cooperating broker.
If they dispute it, tell them that you will hold the total amount payable under the listing agreement in escrow until they can agree. For most situations, I would propose an escrow, but it may be useful to indicate you will immediately after closing interplead the entire commission into the circuit court and let them fight it out there. Nothing gets someone’s attention more than an interpleader. “What do you mean I have to get an attorney on this?” I am betting the selling agent’s broker will get it resolved in short order.
Additionally, the FARBAR AS-IS contract has language on the signature page that explicitly states that the contract cannot be used to modify the compensation outlined in MLS.
Second Most Important Thing All Sellers Should Know for Closing
Equity Line Credit Cards are Mortgages – Sometimes the title agent will ask the seller for the account information to obtain a payoff for a mortgage and the seller is confused as they paid off their mortgage years ago! Equity lines of credit are still technically considered a mortgage since the home is being used as collateral. Once the closing process has begun, the seller must make every effort to stop using the line of credit prior to closing. If they must use the card, the closing agent must be kept up to date as they have to obtain a new payoff. Once the closing is finalized, the seller cannot use their line of credit as the collateral is no longer theirs.
For yourself, there is nothing more important than your home. A place to provide you with shelter and stability, it is where you have happy memories of family gatherings and other special events. However, should you face difficulties with creditors or liens, you may find yourself forced to sell your home to satisfy debts. Rather than let this happen, it is important to understand the concept of and take advantage of what is known as a homestead exemption. But to do so, you will need to work with real estate lawyers Orlando residents trust, such as Nishad Khan P.L. and the firm’s team of experienced professionals.
What is the Homestead Exemption?
Simply put, the homestead exemption is a legal tool used to prevent the forced sale of the property by creditors to pay off taxes or other debts. Applying to your primary residence, it can be used even if you do have enough assets to pay off claims associated with the property.
Who Claims a Homestead Exemption?
In most cases, Orlando Florida real estate attorneys work with surviving spouses who have minor children. Used most often when the head of the household dies, this exemption is generally an automatic right in most U.S. states. However, since some states differ in their interpretation of the law, always work closely with Nishad Khan P.L. to make sure you understand how the law applies to your situation.
Does It Protect Everything?
Unfortunately, a homestead exemption does not offer protection from all creditors. For example, secured creditors such as banks with a mortgage on the property may still pursue foreclosure. In addition, it will not protect against court orders for child support or spousal payments.
When in need of Orlando Florida real estate attorneys to help with this matter, turn to Nishad Khan P.L., real estate lawyers Orlando residents trust with these important matters.
Second Most Important Thing All Buyer’s Agents Should Know for Closing
The Closing Process – Buyers, especially firs-time buyers, are not aware of all of the steps in a closing and look to the buyer’s agent for guidance. The buyer’s agent must make the buyer comfortable every step of the way. They should guide the buyers through, inspections, loan applications and through signing.
When you are preparing to purchase real estate, the buyer’s agreement is the most important document. Since a purchase of this type costs thousands or millions of dollars, it is vital the buyer’s agreement be not only extremely detailed, but also contain various types of information that will be beneficial to you as the buyer. Due to the complexity of these documents, you should never attempt to purchase real estate without first having them looked over by Orlando FL real estate attorneys. To make sure your deal goes as smoothly as possible, consult with a real estate lawyer Orlando buyers trust, such as Nishad Khan P.L. before signing on the dotted line.
Since a real estate purchase involves closing costs and other types of financial complexities, never sign any agreement before having it examined by qualified Orlando FL real estate attorneys. If you do, chances are you will find yourself facing many unexpected and unpleasant surprises as your sale moves closer to completion. Unfortunately, once you sign a buyer’s agreement, it can be difficult to have the process voided. Therefore, work with Nishad Khan P.L. to ensure any questions you have about the agreement can be discussed and explained to you before signing the document.
In virtually all buyers agreements, there should always be an escape clause allowing buyers to void the deal should evidence of fraud or misrepresentation become known before, during, or even after the process. If this is not included in the agreement, you as the buyer will have little recourse. Rather than let this happen, always work with a real estate lawyer Orlando buyers trust will understand the process and fight hard for their rights.
If you are preparing to sign a buyers agreement but still have questions, schedule a consultation with Nishad Khan P.L. to discuss your concerns in greater detail.
Second Most Important Thing All Seller’s Agents Should Know for Closing
Buyer’s Financing Status – If the buyer is a cash buyer, then this is not an issue. However, if the buyer is requesting a loan, the seller’s agent should ensure that the buyer is pre-approved to obtain the loan. There is nothing worse than getting halfway to closing and having the buyer’s financing fall through.
If you are in Florida and are selling a commercial property, it’s important that everything goes smoothly. Hiring a real estate attorney to protect your best interests and assist you in the process is wise. There are various ways a real estate attorney experienced in the area of commercial property can help you.
Saves You Time
First, having a real estate attorney on your side can save you time. The lawyer can perform a number of duties, ask certain important questions and examine the facts with an objective mind. This allows you to keep your focus on your business and other everyday tasks.
Protect Your Interests
An attorney can protect your interests by ensuring the contract for the sale of your commercial property is fair and satisfactory. They can also spot any potential issues that can arise if there are any environmental or structural problems after closing.
Make Sure You Get a Legitimate Deal
Real estate attorneys know how to tell whether there is a good, legitimate deal with a buyer or if it’s not quite on the up and up. If anything seems off, your lawyer can warn you of a bad deal and check for potential issues.
Get the Best Price
A real estate attorney has all the experience and knowledge necessary to ensure you get the best price for your commercial property. They also don’t make commission like real estate agents do, so you know you are getting the best price with your attorney on your side.
Knowledge of Zoning Laws
Finally, real estate attorneys understand the zoning laws in your area. This can help you more easily find a buyer for your commercial property.
If you are looking to sell your commercial property in the Orlando area, you need Nishad Khan P.L. on your side. The Orlando real estate lawyers will work hard to protect your best interests every step of the way. You can discuss your situation with the best real estate attorneys Orlando has to offer as soon as possible. Contact Orlando real estate lawyers Nishad Khan P.L. immediately to consult with real estate attorneys Orlando based.
Second Most Important Thing All Buyers Should Know for Closing
Wire Fraud – You are excited as you’re about to close! All you have to do is send the wire to the title company and sign your closing documents; you can see the finish line! STOP, before you send a wire out to anyone, whether it is for a closing or anything else, you must verbally confirm wire instructions with the person/company who sent them to you. If you have spoken to the person/company before, use the same phone number and not a number on the email signature. You can also do an online search for the company and call the number you find on the internet. There are hackers who send emails pretending to be your realtor or title agent. Do not fall victim to them!
For all your Orlando real estate questions, contact Nishad Khan Law today. Let our experience help you today.
Parties to real estate transactions have certain rights that are set forth in Florida law. These laws are intended to protect against issues that frequently arise in real estate transactions. To understand how that law may apply to your situation, you should contact Orlando real estate attorneys from Nishad Khan P.L. for legal advice.
What types of real estate issues does Florida law address?
Because real estate transactions involve many different issues, there are many laws that could apply. This may include laws involving a variety of issues, including:
- Basic contract principles
- Disclosure requirements
- Construction defects
- Title issues and defects
- Liens and other encumbrances
- Ownership disputes
- Property line issues
- Legal descriptions
- Contract formalities
Because real estate transactions and issues can be complex and may involve significant interests, it is important to ensure that you understand your rights and that the issue is handled in accordance with the law.
Why should you work with real estate lawyers Orlando?
Issues involving real estate need to be handled efficiently and legally. A mistake with involving real estate can have significant consequences and could result in costly litigation. By working closely with real estate lawyers Orlando, you can prevent certain issues from arising.
Orlando real estate attorneys can explain how the law applies to your situation. We can provide advice about your options and provide an opinion about the best way to proceed. An attorney can also prepare and review any necessary documentation for the real estate issue. They will protect your interests and help you understand your rights.
Contact Nishad Khan P.L. for legal advice and representation for you real estate questions and issues. We are anxious to help find solutions for your situation.