Do You Have to Pay the Realtor if the Buyer Doesn’t Get a Loan?

When selling a house or apartment through a real estate agent, it's crucial to understand the costs and obligations, especially if the sale falls through. A common question is whether you have to pay the realtor's commission if the buyer fails to secure a loan, and the sale doesn't go through. What does the law say about this, and are there any exceptions?

No Loan, No Payment to the Realtor

In most cases, the rule is clear: if the buyer doesn't get a loan and the sale doesn’t go through, you don’t have to pay the realtor. The law states that if a suspensive condition, such as obtaining financing, isn’t met, no fee is due to the realtor. This means that if the buyer fails to secure financing, and the sale doesn’t happen, you are not responsible for paying the realtor’s commission.

Can the Realtor Make Other Arrangements?

Many people wonder if the realtor can set different terms. The answer is simple: no. The realtor cannot impose conditions in the contract that would require you to pay the commission if the suspensive condition isn’t met. If such a clause is included in the contract, it is not valid. This means that the realtor cannot demand payment from you even if the sale falls through because the buyer couldn't secure a loan.

What If You Are Not a Consumer?

The situation can be different if you're not an individual seller but, for example, a professional company selling the property. In that case, the rules may differ. A realtor could include a clause in the contract stating that you would still owe a fee even if the suspensive condition isn't met. This applies specifically to sales made by businesses or legal entities. It’s essential to read the contract carefully before signing. If you're unsure about such a clause, it's advisable to remove it to avoid any surprises later.

Conclusion

When selling a property through a realtor, generally, you don’t have to pay the realtor if the buyer fails to secure a loan and the sale doesn’t go through. However, it’s important to pay close attention when signing contracts, especially if you're acting on behalf of a business, as the rules may be different in such cases. Always make clear agreements with the realtor and carefully review the contract to avoid unexpected costs.