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Legal blog > Real estate > The sale with a real estate broker and the commission to be paid..

The sale with a real estate broker and the commission to be paid..

The majority of homeowners still sell their residence through a real estate agent. However, for your information, since the rise of the internet, it appears that over 20% of family homes are sold without the involvement of a real estate agent.

«Just as valuable is the one who hunts and catches nothing as the one who reads and understands nothing»
Aimé de Soland

The majority of homeowners still sell their residence through a real estate broker. However, it should be noted that since the advent of the Web, more than 20% of family homes are sold without the intermediary of a real estate broker.

Following the signing of a duly accepted purchase offer, the prospective buyer, dissatisfied with the results of a property inspection, exercises the waiver clause included in the offer. Despite this waiver, the prospective buyer reiterates to the prospective seller that they are still interested in the property as long as the prospective seller decontaminates the land at their expense. This option is rejected by the prospective seller. The real estate broker then claims their commission. They argue that the purchase offer binds the parties and that, under their brokerage agreement, they are entitled to their commission upon the conclusion of an agreement for the sale of the property. Given the seller's refusal to pay, the broker turns to the Court* claiming that the seller's inaction prevented the sale from being realized.

The court dismisses the broker's claims because as long as a purchase offer does not unconditionally bind the prospective buyer and the prospective seller, there is no agreement to sell the property. To argue otherwise would "entitle the payment of the commission upon acceptance of the offer, despite the presence of conditions."

As the court aptly wrote, "Just like in hunting, the broker may dedicate a lot of time and effort without necessarily achieving their goal."

*Supreme Court of Canada (2015 SCC 36)

François Forget, notary and legal advisor as well as the entire Notaire-Direct team, are at your service to ensure the preparation of your legal documents and answer all your legal questions.
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