Do I Have to Pay a Realtor Sales Commission in a Short Sale?

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Do I Have to Pay a Realtor Sales Commission in a Short Sale?

In standard home transactions, the seller and buyer reach an agreement for how the sales commission to a Realtor will be paid. Sometimes a buyer and seller will agree to split the costs out of escrow funds, or the seller may offer to pay the entire commission as an incentive for the buyer to purchase the property. The commission usually amounts to six percent of the sales price of the property.

However, in a short sale, the seller has no money in escrow to pay commissions, so the funds to pay a Realtor are paid from funds that would have gone to the lender, who ends up paying the entire sales commission.

Other Real Estate Law FAQs

Q: How Does the Short Sale Process Work?
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Q: Why Would a Lender Agree to a Short Sale?
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Q: What is a Short Sale?
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