commission fee when re-sale the off-plan property when the buyer fail to settle

Seeking some help about how much commission fee should be paid when re-sale the off-plan property and the buyer fails to settle

the agency agreement writes commission is payable even if the sale is not complete.(exchanged but not settled), how to negotiate with the agent on this?

Thanks in advance
cheers

 

How much should be paid? The amount in the contract.

What other answer is there?

 

When I sell i stipulate that commission only happens if a the sale completes.

However with off the plan projects often half the commission is payable upfront on exchange and the other half on settlment.

 

Of course the agent may be limited to actual sums received or held. The vendor may get the additional forfeited amount which is taxable. No GST applies to such a sale since there is no supply and the forfeiture is merely money. The agent GST may not be creditable in all cases. Depends if its to be resold or retained for rental.

Surely your legal adviser to the contract is best placed to address this issue. Most OTP agency agreements cater for this with the agent being entitled to their income even if it fails (subject to them holding the funds on trust).

Negotiate ? Time to do that is before you signed it. Some agencies may discount a relisting and some dont. Depends if they already have waiting buyers or must remarket it etc