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Does NC law require the seller to pay the commission of the buyers' realtor and what closing costs?

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June 02 2009 - Goldsboro
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I want to answer the "Pick as Best Answer" question. All seven are very good and each is helpful to us from a little different perspective. Putting them all together we are comfortable we fully understand the answer to our question.We compiment Zillow and all six people who took the time to write an answer. This is a wonderful site.Thanks.
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June 04 2009
Hey natewolf...thank you for the clarification.  I meant that, in general, there is no legal obligation for the seller to pay a commission.  However, as you correctly point out, once the listing agreement is signed, if it provides for payment of a commission, payment of the commission is a legally-enforceable provision.  Thanks...Tim 
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June 03 2009
Tim, you're not entirely correct. You state below that commissons are "not required legally."


Actually if there is a Listing Agreement Signed by the Seller, then this is a legally binding contract. The Listing Agreement usually will state that the Seller must pay his/her own Seller's Agent. That Seller's Agent then pays the Buyer's Agent.


However, if a Seller has NOT signed a Listing Agreement, and is selling his/her home as 'for sale by owner' without representation or listing the property with a Seller's Agent-- then the seller is not legally obligated to pay the Buyer's Agent Commission.

BIG HOWEVER-- if a Buyer's Agent attempts to present an offer to a For Sale By Owner / Non-Represented Seller, they will request the seller to pay the commission because then the Buyer's mortgage company will allow it to be financed into the transaction as a fee. If the Seller refuses to pay the commission-- the Buyer's will simply offer the seller LESS for the home, because they will then be responsible to pay the Buyer's Agent themselves.

So, it's a matter of the NET SALES PRICE, and therefore doesn't really affect the seller to pay the commission. Because either the seller pays it and gets a higher "Gross Sales Price" or the seller refuses, and gets a lower "Gross Sales Price." The Net Sales Price will be the same.
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June 03 2009
hey wizard8...any commission or closing costs that are to be paid by the seller are at the discretion of the seller and are not required legally or otherwise.

The amount of commission to be paid to the buyer agent's firm is established in the listing agreement, which also establishes the commission to be paid to the listing agent's firm.  The amount (percentage of sale price) of the commission is shown on the listing in the multiple listing service.
 
The amount of the closing costs to be paid by the seller, for the buyer, is negotiated during the offer/contract negotiations.  This is also technically at the seller's discretion.  However, it is important to remember that if closing cost assistance is needed by, or very important to, the buyer, the seller's willingness to pay closing costs that are acceptable to the buyer, could "make-or-break" the successful consummation of a contract...Tim
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June 02 2009
The seller may agree to pay a % of the buyers closing costs or a certain dollar amount at the time of the listing contract or the buyers agent will help the buy to ask for some or all closing costs in the offer and then the seller will either accept, offer to pay some, or decline to pay any at all
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June 02 2009
When the seller signs a listing contract, the seller agrees to pay a certain commission to that agent. The listing agent agrees to share part of the commission from the listing contract if an agent brings a buyer. The buyer will be required to sign a buyers agent agreement at least by the time the offer is written.. The buyers agent will assist the buyer in several ways resulting in the closing  When a listing agent submits the listing in the local MLS they put in the % they are offering the buyers agent. Only Realtors can see this info posted by the listing agent. Hope this clarifies
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June 02 2009
There is no law that I know of that "requires" you to pay any commission to anyone nor the closing cost .  If you have signed a contract with a licensed real estate broker it will be in that contract what commission you have "agreed" to pay.  Then if you have signed a Purchase Agreement with a buyer you may "agree" to pay or not to pay any closing cost for them.
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June 02 2009
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When you signed a contract with a selling agent, the commission structure is normally laid out in that contract.   For example, it may mention 6% commission which is split seller's agent/buyer's agent.  

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June 02 2009
 
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