How much commission is due terminated Massachusetts real estate broker?

How much commission is due terminated Massachusetts real estate broker?

In Massachusetts, the amount of commission due to a terminated real estate broker is determined by the terms of the listing agreement between the broker and the seller. Typically, if the listing agreement specifies that the commission is earned upon finding a ready, willing, and able buyer, the broker may still be entitled to the full commission even if the sale falls through after termination. However, if the listing agreement requires the closing of the sale for the commission to be earned, the terminated broker may not be entitled to any commission.

The Massachusetts Supreme Judicial Court has ruled that a real estate broker may still be entitled to a commission even if the sale of the property does not close, as long as the broker was the “procuring cause” of the sale. This means that if the broker was the one who introduced the buyer to the property and negotiated the sale, they may still be entitled to their commission, even if the sale falls through after termination.

It is important for both sellers and brokers to carefully review and understand the terms of their listing agreement to determine what commission is due in the event of termination. Sellers should also be aware that they may still be required to pay the commission to the terminated broker, even if they ultimately decide not to sell the property.

FAQs:

1. Can a terminated real estate broker still be entitled to a commission in Massachusetts?

Yes, a terminated real estate broker may still be entitled to a commission in Massachusetts if they were the “procuring cause” of the sale.

2. What is the “procuring cause” doctrine in real estate?

The “procuring cause” doctrine states that the broker who was instrumental in bringing about the sale of a property is entitled to the commission.

3. Can a seller refuse to pay commission to a terminated real estate broker?

If the listing agreement specifies that the commission is earned upon finding a ready, willing, and able buyer, the seller may still be required to pay the commission to the terminated broker.

4. What happens if a terminated real estate broker sues the seller for unpaid commission?

If a terminated real estate broker sues the seller for unpaid commission, the court will likely review the terms of the listing agreement to determine if the broker is entitled to the commission.

5. Can a seller terminate a real estate broker for any reason?

Sellers in Massachusetts can terminate a real estate broker for any reason, as long as they follow the terms of the listing agreement.

6. Can a seller terminate a real estate broker without cause?

Yes, a seller can terminate a real estate broker without cause, but they may still be required to pay the commission if the terms of the listing agreement specify it.

7. Is there a standard commission rate for real estate brokers in Massachusetts?

There is no standard commission rate for real estate brokers in Massachusetts, as it is typically negotiated between the broker and the seller.

8. Can a real estate broker reduce their commission rate in the listing agreement?

Real estate brokers in Massachusetts can negotiate a lower commission rate in the listing agreement with the seller.

9. Can a real estate broker charge a commission if the sale falls through after termination?

If the listing agreement specifies that the commission is earned upon finding a ready, willing, and able buyer, the broker may still be entitled to the commission even if the sale falls through after termination.

10. Can a seller negotiate the commission rate with a terminated real estate broker?

Sellers can negotiate the commission rate with a terminated real estate broker, but they should be aware of the terms of the listing agreement and any potential legal implications.

11. Are there any regulations on commission rates for real estate brokers in Massachusetts?

There are no specific regulations on commission rates for real estate brokers in Massachusetts, as it is typically a matter of negotiation between the broker and the seller.

12. How can sellers protect themselves from paying commission to a terminated real estate broker?

Sellers can protect themselves from paying commission to a terminated real estate broker by carefully reviewing and understanding the terms of the listing agreement before terminating the broker.

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