When an individual is selling a piece of property, there are a number of factors that need to be considered. One element that most people overlook but should be taken into account is when there is a dispute with a real estate finance broker.
Disputes with the Broker
There are several reasons why someone may have a dispute with a broker. One example is when the person places their home or building up for sale and then decides not to follow through with the sale. If this situation happens, there may be a clause in the contract that determines how much money the broker is entitled to after the property is de-listed, including any applicable costs incurred by the agent.
Another example of a possible dispute is the commission percentage that the broker will earn. Most agents usually charge between 5 and 7 percent for their work but may charge a different amount. However, there may be times when the agent may not have had to do as much work as anticipated. When this occurs, the seller may feel that the broker may not be entitled to the full amount of their commission.
Resolving Disputes
When there are disputes with a real estate finance broker, a number of different methods can be used to resolve the issues. One way to solve the issue is through mediation, which is where a neutral third party attempts to informally resolve the issues between the parties. Another option for the parties is arbitration, where both sides present their evidence to an independent third party. The arbitrator then makes a ruling in favor of one of the sides and is usually binding.
Things to Consider
Before entering into a contract with a real estate professional, the seller may want to speak with a business or real estate attorney to discuss their options. The lawyer can explain any potential issues that may arise with a broker. In addition, the attorney may be able to discuss what the seller should do ahead of time, such as including a clause in the contract that would allow the seller to only pay a specific amount to the agent if they decide to opt of the sale. Lastly, the attorney can explain how real estate broker commissions work and what the best kind of commission is for the individual, including what kind of commission the agent would receive if there is more or less work involved.
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