"David W." wrote in message ...
(John E. Jaku-Hing) wrote in
om:

Was wondering what one would do in this situation:


The crux of the matter comes in the following clause within the
listing contract:
"Owner expressly acknowledges and understands that the Commiision to
{broker} shall be earned upon delivery of a ready, willing, and able
buyer who makes an offer that meets the price and other conditions set
forth in this Agreement, including a full price offer."

The offer is not full price. Do you think I'm obligated to proceed,
prehaps make the strict demand of Nov. 12, and basically swipe their
deposit (play hardball)? By definition, if they missed the deadline,
they wouldn't be "able" to buy and I shouldn't owe the broker a dime
in commission. God knows they didn't deserve a penny thus far. BTW,
I am from NJ.


I'm not a lawyer and this is not legal advice.

First, it *is* possible to close that quickly. When I bought a house last
March, the time between writing the offer and closing (conventional
mortgage, 10% down) was 2 weeks.

Although it depends on the exact wording of the contract as well as real
estate law in NJ, I'd think that if the deal falls through because the
buyer can't meet the closing requirements, he would not be considered an
"able" buyer according the the clause you quoted. House deals fall through
all the time, and normally, the commission is only owed when the house
actually sells.

The clause you quoted is usually intended to protect the broker in the case
where they bring a valid offer on a house and the seller backs out of the
deal.

Considering the additional overhead involved in the FHA mortgage, I
think it is highly unlikely the buyer will complete the sale in that
small time frame. I suppose I will try to make with the house, and
take their money if they are unsuccessful in meeting the closing date
(my attorney assured me that this can be stipulated quite nicely).