QUESTION
Can I sue my buyer for commission if he defaulted on the contract on day of closing?
Asked on Feb 06th, 2013 on Real Estate - Colorado
More details to this question:
I had a signed contract for exclusive buyer representation. In the contract, it states that if the buyer defaults on the contract after all dates have expired, that they owe me a success fee. Client was unable to get funding, so her father had to step in and get a loan in his name. We changed to contract to buy and sell to his name and he failed to qualify as well. I did not find out that the loan was not going to get funded until three days before close, over three weeks past the loan conditions deadline. Father says he and daughter do not owe me success fee, because the contract was changed to his name and he did not have a signed contract with me. Daughter says the same. By the way, I completely fulfilled my duties above and beyond the expected. Please help!
1 ANSWER
3 Awards
Lisa,
From the above I'll assume that you are a CO Real Estate Broker and you used the CO Real Estate Commission approved forms.
You have a contract to represent the daughter but since she could not close you then functioned as the broker for the father to purchase the house, but never got a exclusive buyer's contract signed with the Father. The Fathers' contract with the seller was not an assumption but a new contract? If we can show the the Father was purchasing the house for his daughter then we may be able to create liability with the daughters contract.
This is going to be a very fact based claim. The specifics of the written contracts will control.
I offer a free initial consultation to discuss the specific facts of your case.
Feel free to call me,
Don Eby
Answered on Feb 07th, 2013 at 3:51 PM
Call Don at (303) 688-0944 or email at Reception@RobinsonandHenry.com This information is provided AS IS; and does not create Client Relationship.