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No Deal No Commission Clause
A no deal no commission clause is a term within contract of service between a home seller and real estate agent which stipulates that the agent is not due a commission as long as the property is not sold.
While this can seem common sense, the jungle that is the real estate services industry can work in mysterious ways.
Many property agents don’t feel that their job is to make a deal happen, but only to find a willing buyer who is willing pay the asking price of a seller.
So in certain cases when they have indeed found a buyer, and the seller backs out of the deal, they feel that they are still due the commission payment as they have served their duty towards the home owner.
The absence of such a clause, also known as no buy no pay clause, will mean that an agent will be due his commission should a seller back out of a deal to sell even though a buyer has met all the conditions, most importantly, the asking price.
It is not uncommon for sellers to change their minds towards selling.
Circumstances change and they have to consider their own best interest. And refusing to sell or delaying it can sometimes be the right decision to make.
However, agent who have done their part would undoubtedly demand payment for their services rendered.