It's no secret that I dislike short sales. They always seem to involve too much work, too much uncertainty and too much waiting. Below is one potential pitfall that you may encounter during a real estate transaction that is listed as a short sale. Pitfall #379: The bank approves the buyer's offer, but with conditions...
That's great! What's the catch? The bank demands that the total commission paid to the real estate agents involved is decreased by 2%. Logically, neither the listing agent, nor the buyer's broker wants to decrease the amount of commission they expected to receive in this transaction. Aren't they legally obligated to do so? No. Neither party has any legal obligation to decrease his/her commission. Yes, this can turn ugly as they decide who gets paid less, and by how much, and yes, this can stall or cancel your real estate transaction. The most likely scenario is that they split the commission-ectomy 50-50, which is good for you because you have a sale, but you shouldn't count on it being so neat and simple.
The information in this article is pulled from the Arizona Association of Realtors website.
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