We are making an offer of a MHP with 39 lots, 7 apartments and 3 retail spaces. On the Purchase Agreement #11 is Commission Due, stating there is no broker involved. They have it listed through a broker so there will be commissions paid. I know with SF houses the seller pays the commissions and I assume it works the same with MHP’s, please correct me if I’m wrong.
Do we need to take #11 out of the contract or replace it with other wording?
Thanks,
Leighnae Fabian
Leighnae -
Typical splits are:
Buyer:
Half closing costs
Title insurance
Survey
Phase 1
Filing Fees
Seller:
Half closing costs
-jl-
That information helps, but my questions is, we are using the contract off the MHPS web site, it has a paragraph, #11, that says there is no Broker involved in the deal and neither party will be held responsible for those commissions. In our case there is a Broker involved, my question is do I take the paragraph out completely or do I replace the wording with something to the effect of the seller pays the commission.
The latter. Just make the contract reflect the reality of your deal.
-jl-
Am I to assume post that the seller is responsible for the commission? If that’s the case, do I need to include the paragraph at all?
Sellers are responsible for brokers’ commissions. You should modify Section 11 to say “Seller is responsible for all commissions owed to any and all brokers for this transaction.”
-jl-
Here is some language out of my contract- you need to modify it to match the contract your using.
.
BROKER’S ACKNOWLEDGMENTS AND COMPENSATION DISCLOSURE.
BrokerDoesDoes Not acknowledge receipt of Earnest Money deposit and, while not a party to the Contract, agrees to cooperate upon request with any mediation concluded under § 23. Broker agrees that if Brokerage Firm is the Earnest Money Holder and, except as provided in § 24, if the Earnest Money has not already been returned following receipt of a Single Party Notice to Terminate (buyer) or other written notice of termination, Earnest Money Holder shall release the Earnest Money as directed by the written mutual instructions. Such release of Earnest Money shall be made within five days of Earnest Money Holder ’s receipt of the executed written mutual instructions, provided the Earnest Money check has cleared.
Broker is working with Buyer as aBuyer’s AgentSeller’s AgentTransaction-Broker in this transaction.
This is a Change of Status.
Brokerage Firm’s compensation or commission is to be paid byListing Brokerage FirmBuyerOther .
Hello to all,
I am new to this site and learning a lot reading all the threads. My question today is, I cannot locate purchase contract download from MHP website.
I want to buy one park and want to hire lawyer for the escrow and left msg to 3 of the contacts I found here, but after almost one day, did not get reply from any one of them. I am about to go to title company to handle the escrow. I left msg to Frank also. Your advice will be greatly appreciated.
Thanks for the great informational articles here…karol
Karol -
If you PM me, I will send you F&D’s contract. But you are playing with fire! X( I would not make anyone an offer without first reading F&D’s book, AND attending their bootcamp.
Also - we are all very busy. Waiting ‘one whole day’ without getting a response is really not that long. Have patience. Good things come to those who wait. (tu)
Best,
-jl-
Thank you very much for your advice Jefferson…