Question:
How do I protect my commission? Everyone says that there’s just not enough money for the Bank, hydro taxes etc?
Answer:
Assuming this is a Big 5 Bank, they’ve got billions! Whatever amount it is, it is really nothing. They need to sell and go through the motions. But, that won’t give them more money than it’s worth. There is a way of protecting your commission. That’s important here, otherwise, you’re at risk.
This one should be paid by the Buyer directly through the Buyer Representation Agreement (BRA) by the Buyer’s Lawyer on closing. The problem is otherwise the commission is at the bottom of the list.
That’s where the Buyer’s Agent gets commission anyways. It goes to the Buyer who re-directs it to their own Agent. That’s the fiduciary duty of accounting. In this case, that money gets deducted from the closing funds and paid directly to the Buyer’s Brokerage. It’s the Seller’s side which has the money problems.
Brian Madigan LL.B., Broker