Our Broker valued the business at $625,000. We lowered price to $450,000 based on input from other professionals.
Have an offer of $400,000 – $250,000 at closing and we finance the other $150,000 with payments beginning in 3 years.
Are we bound to pay the entire 10% commission at closing ($40,000 from the $250,000)?
Hi Cecelia –
Great question…and it has a relatively simple answer we’re happy to offer. Whether the deal is bank financed or owner financed really does not make a difference in what the broker is entitled to. A broker is entitled to commission no matter the source or type of financing. If you have second thoughts or want to double check, feel free to consult a real estate attorney or check with the National Association of Realtors.
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