The buyer indicated they had cash, but in reality they need financing. They asked for an extension, but since they were the low offer, by $18,000, I declined. The settlement date is tomorrow, so this may be hypothetical
Harcourt Johnsonville sent through a Commission Tax invoice.
So I asked the property lawyer that they recommended this question?
So if it falls through, they get a second commission on the second sale?
Yes, legally that is correct.
The sale is unconditional so the deposit is collected by them at that point and then their commission is deducted prior to vendor being paid the balance.
Technically, even though settlement hasn’t occurred, the property is ‘sold’. If the purchaser failed to settle, the deposit is forfeited, so Harcourts get to keep their commission and you get to keep the balance.
Commission calculated on sale price of $610,000.00
Base commission of $500.00
plus 3.10% of $610,000.00
Deposits Held in Trust
Deposit on address removed
Date 21/05/2020 The settlement date is in the future 29/05
Total Deposits $61,000.00
Gross Commission $19,410.00
Advertising Fee $1,141.45
GST @ 15.00% $3,082.72
Balance Herewith $37,365.83