Mutual Release

[lstroeder]

Last week I made an unconditional offer on a property in Toronto which the seller accepted.
I found out today that the seller has changed her mind and wants me to sign a Mutual Release.
My question is this;
If I chose to sign the release or or other document allowing the seller out of the deal, with a financial penalty payable to me, are either of the two realtors entitled to a portion of this settlement or my deposit? (ie Their Commission)

Thank You.

 

[RedlineBrett]

I can`t comment 100% for certain in Ontario.

But in Alberta you as the buyer would get your whole deposit back. The brokerages will have a beef with the seller, not you and more than likely the listing and selling brokerages will sue the seller and have liens placed on the title of the property for their commissions (as per the listing contract in Alberta).

When you sign the mutual release just make sure that it says that your deposit will be returned to you in full and you should have nothing to worry about. If you want to be really super careful you could ask each broker (not agent!) to sign the same document.

 

[GarthChapman]

Not sure what your intent is here. You have a binding contract, and so are free to negotiate a resolution that satisfies you, and perhaps also the Seller, or to try to complete the purchase - notwithstanding what Brett wrote of course.

 

[lstroeder]

Garth

My intent:

The only way I will allow the seller to exit this deal is if I am compensated for it.
What I do not want to happen is negotiate that compensation only to lose it to pay either of the realtors involved their commission or part there of.
I do not really want out of this deal. The seller does. I know that I can hold her to the contract and will likely do so.

Les

 

[Thomas Beyer]

QUOTE (lstroeder @ Sep 29 2009, 04:18 PM) Last week I made an unconditional offer on a property in Toronto which the seller accepted.
I found out today that the seller has changed her mind and wants me to sign a Mutual Release.
My question is this;
If I chose to sign the release or or other document allowing the seller out of the deal, with a financial penalty payable to me, are either of the two realtors entitled to a portion of this settlement or my deposit? (ie Their Commission)

Thank You.
50 % of deposit is usual but it depends on EXACT wording of commission clause in contract

 

[RedlineBrett]

QUOTE (thomasbeyer2000 @ Sep 29 2009, 07:18 PM) 50 % of deposit is usual but it depends on EXACT wording of commission clause in contract

In Alberta if a buyer defaults the listing brokerage takes the lesser of 50% of the deposits or their full remuneration as specified in the listing contract.

 

[JoefromTO]

Has the seller said why she wants out of the deal?

 

[tahani]

hello
for sure you need to get the two borkerage on this as now this involves all parties.
yes the brokerage can come after both of you for commissions because what they were out to do they did. sell the house for the seller and find a house for the buyer. you must speak to your lawyer as this is an issue involves all parties.

Tahani
Broker of Record

 

[Dan_Eisenhauer]

In 1978 I was on the reverse end of a $75,000 deal. I was the buyer who wanted out, without going into the minutia.

It cost me $22,000 in 1978 dollars to get out of it. In hind sight, it was probably a good move for me to bail, and may have saved me money in the long run.

If you have a firm, unconditional offer, you can expect the seller to pay you some big bucks to get out of it.

You have the option of suing for breach of contract, and for specific performance (which is what happened in my case). The seller, if they really do not want to sell, will likely come to the table with an offer to settle.