{"id":15240,"date":"2022-11-28T13:15:00","date_gmt":"2022-11-28T18:15:00","guid":{"rendered":"http:\/\/www.zoocasa.com\/blog\/?p=15240"},"modified":"2022-11-28T13:14:51","modified_gmt":"2022-11-28T18:14:51","slug":"my-deal-fell-through-do-i-still-owe-my-real-estate-agent-commission","status":"publish","type":"post","link":"https:\/\/www.zoocasa.com\/blog\/my-deal-fell-through-do-i-still-owe-my-real-estate-agent-commission\/","title":{"rendered":"My Deal Fell Through \u2013 Do I Still Owe My Real Estate Agent Commission?"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">After soaring for years, house prices in and around Toronto have pulled back sharply in recent months. Prices in the GTA for detached homes ave fallen 11% on average from the market\u2019s peak in February, according to the <\/span><a href=\"https:\/\/www.zoocasa.com\/blog\/trreb-october-2022\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">Toronto Real Estate Board.<\/span><\/a><\/p>\n<p>That drop is prompting some buyers who bought when prices were at their highest peak to try to get out of their deals \u2013 usually once they realize, as the closing date approaches, that the price they paid is now more than the house is worth. But re-negotiating agreements with vendors and real estate agents can be tough and walking away from what seems like a poor deal isn\u2019t as easy as one might think.<\/p>\n<ul>\n<li><strong>Related Read: <a href=\"https:\/\/www.zoocasa.com\/blog\/what-happens-when-a-buyer-walks-away-from-a-real-estate-deal\/\" target=\"_blank\" rel=\"noopener noreferrer\">What Happens When a Buyer Walks Away From a Real Estate Deal?<\/a><\/strong><\/li>\n<\/ul>\n<h2>Scrutinize Buyer Representation Agreements Closely<\/h2>\n<p>Generally, the real estate industry operates on participants being paid only upon a successful result \u2013 but that\u2019s not always the case. That\u2019s why it\u2019s critical that you clearly document the relationship between you and your agent from the outset, including your expectations of the agent\u2019s services, what you\u2019re prepared to pay for those services, and the duration of your commitment.<\/p>\n<p>Most of this is outlined in your <a href=\"https:\/\/www.zoocasa.com\/blog\/what-is-a-buyer-representation-agreement\/\">Buyer Representation Agreement<\/a>, the contract wherein you agree to work exclusively with the agent\u2019s firm for a designated period of time. Among other things, the BRA highlights the agent\u2019s commission structure and overall compensation, including a holdover clause stipulating that if you buy a home after your BRA has expired, and that buyer was originally found by your agent, you may still be on the hook for a commission.<\/p>\n<p>What many buyers don\u2019t realize, however, is that they may also be liable for such commissions if they change their minds and attempt to back out of a sale that\u2019s well underway. <a href=\"https:\/\/www.ctvnews.ca\/canada\/toronto-area-family-on-the-hook-for-37k-commission-after-failed-home-purchase-1.3599860\" target=\"_blank\" rel=\"noopener noreferrer\">That\u2019s what happened<\/a> to one Toronto-area family when they decided to walk away from a new house they agreed to buy in 2017.<\/p>\n<h2>Little Room for Buyer\u2019s Remorse<\/h2>\n<p>Last year, Marcello and Anita Mastroianni decided to sell their semi-detached home in Vaughan and buy a larger place for their growing family, subsequently making an offer to purchase another home nearby for $1.3 million. But, within weeks of signing the paperwork, both homes dropped sharply in value. Alarmed, the Mastroiannis decided to walk away and not close on the new house \u2013 even though they knew they would lose their deposit.<\/p>\n<p>But that wasn\u2019t the end of things as they quickly received notice from their real estate agent that he was going to pursue them for the commissions that he had lost.<\/p>\n<h2>Vendors Are on the Hook as Well<\/h2>\n<p>It\u2019s not only buyers who get cold feet, of course. Given the market\u2019s volatility, there\u2019s no shortage of reasons that might drive sellers to change their minds and take their property off the market \u2013 even after receiving an offer for full asking price. But that doesn\u2019t mean they can ignore the work that went into making the sale.<\/p>\n<ul>\n<li><b>Related Read<\/b><span style=\"font-weight: 400;\">: <\/span><strong><a href=\"https:\/\/www.zoocasa.com\/blog\/detached-homes-leased\/\" target=\"_blank\" rel=\"noopener noreferrer\">Where Are All the Detached Homes? They\u2019re Being Leased<\/a>\n<p><\/strong><\/li>\n<\/ul>\n<p>In a recent court case, a valid offer was presented to the seller within the listing period, even though the homeowner had had a change of heart and was actively working to sink the deal. In that situation, the court concluded that actual acceptance of the offer wasn\u2019t required for money to be owed. Since the listing agreement clearly outlined the commission to be paid upon presentation of an offer at the full listing price, the real estate agent was entitled to the full commission, regardless of whether the seller accepted the offer, or the property was actually sold.<\/p>\n<h2>Take a Second Look Then Ask for Clarification<\/h2>\n<p>Most real estate listing agents use standard forms to create their BRAs, generally with few problems. Don\u2019t sign one without reading it carefully, however, and don\u2019t be afraid to ask for any changes or amendments \u2013 realizing that agents may be reluctant to modify their standard agreements since they\u2019ve used them successfully in the past.<\/p>\n<p>But that doesn\u2019t mean they won\u2019t make adjustments, particularly if your request is reasonable. If you\u2019re in any way unsure, have the proposed listing agreement reviewed by your lawyer prior to signing it.<\/p>\n<p><em><span style=\"font-weight: 400;\">Published: January 15, 2018<br \/>\n<\/span><span style=\"font-weight: 400;\">Last Updated: November 28, 2022<\/span><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>After soaring for years, house prices in and around Toronto have pulled back sharply in recent months. Prices in the GTA for detached homes ave fallen 11% on average from the market\u2019s peak in February, according to the Toronto Real Estate Board. That drop is prompting some buyers who bought when prices were at their [&hellip;]<\/p>\n","protected":false},"author":55,"featured_media":15242,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jnews-multi-image_gallery":[],"jnews_single_post":{"subtitle":"","format":"standard","video":"","gallery":"","source_name":"","source_url":"","via_name":"","via_url":"","override":[{"single_blog_custom":"","sidebar":"","second_sidebar":"","share_position":"","share_float_style":"","post_date_format":"","post_date_format_custom":"","post_reading_time_wpm":"","zoom_button_out_step":"1","zoom_button_in_step":"1","number_popup_post":"1"}],"image_override":[{"single_post_thumbnail_size":"","single_post_gallery_size":""}],"trending_post_position":"","trending_post_label":"","sponsored_post_label":"","sponsored_post_name":"","sponsored_post_url":"","sponsored_post_logo":"","sponsored_post_desc":""},"jnews_primary_category":{"id":""},"footnotes":""},"categories":[76,113],"tags":[],"class_list":["post-15240","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-buying-a-home","category-selling-your-home"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Do I Still Owe My Real Estate Agent Commission? | Zoocasa Life<\/title>\n<meta name=\"description\" content=\"Do I still owe my real estate agent commission if my deal falls through? Some buyers and sellers may be surprised to learn that, despite...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.zoocasa.com\/blog\/my-deal-fell-through-do-i-still-owe-my-real-estate-agent-commission\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Do I Still Owe My Real Estate Agent Commission? | Zoocasa Life\" \/>\n<meta property=\"og:description\" content=\"Do I still owe my real estate agent commission if my deal falls through? Some buyers and sellers may be surprised to learn that, despite...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.zoocasa.com\/blog\/my-deal-fell-through-do-i-still-owe-my-real-estate-agent-commission\/\" \/>\n<meta property=\"og:site_name\" content=\"Zoocasa Blog\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Zoocasa\" \/>\n<meta property=\"article:published_time\" content=\"2022-11-28T18:15:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-11-28T18:14:51+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.zoocasa.com\/blog\/wp-content\/uploads\/2018\/01\/Real-Estate-Agent-Commission-e1515004982745.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"600\" \/>\n\t<meta property=\"og:image:height\" content=\"401\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Gordon Powers\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@Zoocasa\" \/>\n<meta name=\"twitter:site\" content=\"@Zoocasa\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Gordon Powers\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.zoocasa.com\/blog\/my-deal-fell-through-do-i-still-owe-my-real-estate-agent-commission\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.zoocasa.com\/blog\/my-deal-fell-through-do-i-still-owe-my-real-estate-agent-commission\/\"},\"author\":{\"name\":\"Gordon Powers\",\"@id\":\"https:\/\/www.zoocasa.com\/blog\/#\/schema\/person\/6ba1fcb3d8334b05a45eb8ef8d46d457\"},\"headline\":\"My Deal Fell Through \u2013 Do I Still Owe My Real Estate Agent Commission?\",\"datePublished\":\"2022-11-28T18:15:00+00:00\",\"dateModified\":\"2022-11-28T18:14:51+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.zoocasa.com\/blog\/my-deal-fell-through-do-i-still-owe-my-real-estate-agent-commission\/\"},\"wordCount\":744,\"commentCount\":1,\"publisher\":{\"@id\":\"https:\/\/www.zoocasa.com\/blog\/#organization\"},\"articleSection\":[\"Buying a Home\",\"Selling Your Home\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.zoocasa.com\/blog\/my-deal-fell-through-do-i-still-owe-my-real-estate-agent-commission\/\",\"url\":\"https:\/\/www.zoocasa.com\/blog\/my-deal-fell-through-do-i-still-owe-my-real-estate-agent-commission\/\",\"name\":\"Do I Still Owe My Real Estate Agent Commission? | Zoocasa Life\",\"isPartOf\":{\"@id\":\"https:\/\/www.zoocasa.com\/blog\/#website\"},\"datePublished\":\"2022-11-28T18:15:00+00:00\",\"dateModified\":\"2022-11-28T18:14:51+00:00\",\"description\":\"Do I still owe my real estate agent commission if my deal falls through? Some buyers and sellers may be surprised to learn that, despite...\",\"breadcrumb\":{\"@id\":\"https:\/\/www.zoocasa.com\/blog\/my-deal-fell-through-do-i-still-owe-my-real-estate-agent-commission\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.zoocasa.com\/blog\/my-deal-fell-through-do-i-still-owe-my-real-estate-agent-commission\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.zoocasa.com\/blog\/my-deal-fell-through-do-i-still-owe-my-real-estate-agent-commission\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.zoocasa.com\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"My Deal Fell Through \u2013 Do I Still Owe My Real Estate Agent Commission?\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.zoocasa.com\/blog\/#website\",\"url\":\"https:\/\/www.zoocasa.com\/blog\/\",\"name\":\"Zoocasa Blog\",\"description\":\"Home Buying &amp; Selling Tips, Real Estate Market Trends &amp; News\",\"publisher\":{\"@id\":\"https:\/\/www.zoocasa.com\/blog\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.zoocasa.com\/blog\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/www.zoocasa.com\/blog\/#organization\",\"name\":\"Zoocasa\",\"url\":\"https:\/\/www.zoocasa.com\/blog\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.zoocasa.com\/blog\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/www.zoocasa.com\/blog\/wp-content\/uploads\/2020\/09\/zoocasa-square-logo-800x800px.png\",\"contentUrl\":\"https:\/\/www.zoocasa.com\/blog\/wp-content\/uploads\/2020\/09\/zoocasa-square-logo-800x800px.png\",\"width\":800,\"height\":800,\"caption\":\"Zoocasa\"},\"image\":{\"@id\":\"https:\/\/www.zoocasa.com\/blog\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.facebook.com\/Zoocasa\",\"https:\/\/twitter.com\/Zoocasa\"]},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.zoocasa.com\/blog\/#\/schema\/person\/6ba1fcb3d8334b05a45eb8ef8d46d457\",\"name\":\"Gordon Powers\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.zoocasa.com\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/bf00a1c03f68e313532b673d32b5c5d7e6aec04f85e471bc3d22bbc555528dec?s=96&d=blank&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/bf00a1c03f68e313532b673d32b5c5d7e6aec04f85e471bc3d22bbc555528dec?s=96&d=blank&r=g\",\"caption\":\"Gordon Powers\"},\"url\":\"https:\/\/www.zoocasa.com\/blog\/author\/gordon-powers\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Do I Still Owe My Real Estate Agent Commission? | Zoocasa Life","description":"Do I still owe my real estate agent commission if my deal falls through? Some buyers and sellers may be surprised to learn that, despite...","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.zoocasa.com\/blog\/my-deal-fell-through-do-i-still-owe-my-real-estate-agent-commission\/","og_locale":"en_US","og_type":"article","og_title":"Do I Still Owe My Real Estate Agent Commission? | Zoocasa Life","og_description":"Do I still owe my real estate agent commission if my deal falls through? Some buyers and sellers may be surprised to learn that, despite...","og_url":"https:\/\/www.zoocasa.com\/blog\/my-deal-fell-through-do-i-still-owe-my-real-estate-agent-commission\/","og_site_name":"Zoocasa Blog","article_publisher":"https:\/\/www.facebook.com\/Zoocasa","article_published_time":"2022-11-28T18:15:00+00:00","article_modified_time":"2022-11-28T18:14:51+00:00","og_image":[{"width":600,"height":401,"url":"https:\/\/www.zoocasa.com\/blog\/wp-content\/uploads\/2018\/01\/Real-Estate-Agent-Commission-e1515004982745.jpg","type":"image\/jpeg"}],"author":"Gordon Powers","twitter_card":"summary_large_image","twitter_creator":"@Zoocasa","twitter_site":"@Zoocasa","twitter_misc":{"Written by":"Gordon Powers","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.zoocasa.com\/blog\/my-deal-fell-through-do-i-still-owe-my-real-estate-agent-commission\/#article","isPartOf":{"@id":"https:\/\/www.zoocasa.com\/blog\/my-deal-fell-through-do-i-still-owe-my-real-estate-agent-commission\/"},"author":{"name":"Gordon Powers","@id":"https:\/\/www.zoocasa.com\/blog\/#\/schema\/person\/6ba1fcb3d8334b05a45eb8ef8d46d457"},"headline":"My Deal Fell Through \u2013 Do I Still Owe My Real Estate Agent Commission?","datePublished":"2022-11-28T18:15:00+00:00","dateModified":"2022-11-28T18:14:51+00:00","mainEntityOfPage":{"@id":"https:\/\/www.zoocasa.com\/blog\/my-deal-fell-through-do-i-still-owe-my-real-estate-agent-commission\/"},"wordCount":744,"commentCount":1,"publisher":{"@id":"https:\/\/www.zoocasa.com\/blog\/#organization"},"articleSection":["Buying a Home","Selling Your Home"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.zoocasa.com\/blog\/my-deal-fell-through-do-i-still-owe-my-real-estate-agent-commission\/","url":"https:\/\/www.zoocasa.com\/blog\/my-deal-fell-through-do-i-still-owe-my-real-estate-agent-commission\/","name":"Do I Still Owe My Real Estate Agent Commission? | Zoocasa Life","isPartOf":{"@id":"https:\/\/www.zoocasa.com\/blog\/#website"},"datePublished":"2022-11-28T18:15:00+00:00","dateModified":"2022-11-28T18:14:51+00:00","description":"Do I still owe my real estate agent commission if my deal falls through? Some buyers and sellers may be surprised to learn that, despite...","breadcrumb":{"@id":"https:\/\/www.zoocasa.com\/blog\/my-deal-fell-through-do-i-still-owe-my-real-estate-agent-commission\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.zoocasa.com\/blog\/my-deal-fell-through-do-i-still-owe-my-real-estate-agent-commission\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.zoocasa.com\/blog\/my-deal-fell-through-do-i-still-owe-my-real-estate-agent-commission\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.zoocasa.com\/blog\/"},{"@type":"ListItem","position":2,"name":"My Deal Fell Through \u2013 Do I Still Owe My Real Estate Agent Commission?"}]},{"@type":"WebSite","@id":"https:\/\/www.zoocasa.com\/blog\/#website","url":"https:\/\/www.zoocasa.com\/blog\/","name":"Zoocasa Blog","description":"Home Buying &amp; Selling Tips, Real Estate Market Trends &amp; News","publisher":{"@id":"https:\/\/www.zoocasa.com\/blog\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.zoocasa.com\/blog\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.zoocasa.com\/blog\/#organization","name":"Zoocasa","url":"https:\/\/www.zoocasa.com\/blog\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.zoocasa.com\/blog\/#\/schema\/logo\/image\/","url":"https:\/\/www.zoocasa.com\/blog\/wp-content\/uploads\/2020\/09\/zoocasa-square-logo-800x800px.png","contentUrl":"https:\/\/www.zoocasa.com\/blog\/wp-content\/uploads\/2020\/09\/zoocasa-square-logo-800x800px.png","width":800,"height":800,"caption":"Zoocasa"},"image":{"@id":"https:\/\/www.zoocasa.com\/blog\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/Zoocasa","https:\/\/twitter.com\/Zoocasa"]},{"@type":"Person","@id":"https:\/\/www.zoocasa.com\/blog\/#\/schema\/person\/6ba1fcb3d8334b05a45eb8ef8d46d457","name":"Gordon Powers","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.zoocasa.com\/blog\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/bf00a1c03f68e313532b673d32b5c5d7e6aec04f85e471bc3d22bbc555528dec?s=96&d=blank&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/bf00a1c03f68e313532b673d32b5c5d7e6aec04f85e471bc3d22bbc555528dec?s=96&d=blank&r=g","caption":"Gordon Powers"},"url":"https:\/\/www.zoocasa.com\/blog\/author\/gordon-powers\/"}]}},"_links":{"self":[{"href":"https:\/\/www.zoocasa.com\/blog\/wp-json\/wp\/v2\/posts\/15240","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.zoocasa.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.zoocasa.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.zoocasa.com\/blog\/wp-json\/wp\/v2\/users\/55"}],"replies":[{"embeddable":true,"href":"https:\/\/www.zoocasa.com\/blog\/wp-json\/wp\/v2\/comments?post=15240"}],"version-history":[{"count":0,"href":"https:\/\/www.zoocasa.com\/blog\/wp-json\/wp\/v2\/posts\/15240\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.zoocasa.com\/blog\/wp-json\/wp\/v2\/media\/15242"}],"wp:attachment":[{"href":"https:\/\/www.zoocasa.com\/blog\/wp-json\/wp\/v2\/media?parent=15240"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.zoocasa.com\/blog\/wp-json\/wp\/v2\/categories?post=15240"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.zoocasa.com\/blog\/wp-json\/wp\/v2\/tags?post=15240"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}