Real estate agent was paid a 3% commission instead of 2.5% that was due and wants to refund the overpayment: just accept it?

I owned a few rental properties and worked with an excellent property manager.  The property manager’s firm acted as my real estate agent in selling the properties and did a great job.

The commission due to the property manager (as a real estate agent for me) was 2.5% but the closing attorney paid 3%.  The property manager told me this morning that he would refund the overpayment of 0.5%.

I’m actually fine with 3%, but I assume that I should just accept the refund (rejecting generosity can be an insult)?

Or should I respond with, “Keep it- 3% is fine and you made this so easy”?

The buyer’s agent was correctly paid 3%.

Previously I had paid the property manager an extra $1000 for a great job that it did without payment.

Thanks.

4 Answers

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  • 4 weeks ago
    Favourite answer

    The property manager is doing the legally-correct thing. It is not 'generosity'.  Not everyone is like you; another person might see the overpayment on their closing statement and rightfully demand the refund of the overpayment. That person would have a winning lawsuit if the overpayment was not returned. 

    How you choose to proceed is up to you. I would accept the refund, thank the property manager for their honesty, and repay it with future business and/or positive referrals.

  • 4 weeks ago

    Didn't you or your agent review the closing statement prior to closing?  That's SOP.

  • 4 weeks ago

    This has nothing to do with 'rejecting generosity'.  This has to do with following them following the legal contract and being a moral institution.  You should have caught this yourself and you should expect them to refund the money as they are.  

  • Anonymous
    4 weeks ago

    Accept the refund.  It's not ethical for a licensed agent to keep an overpayment.

    Once you receive the refund you're free to thank your agent (or not) in any way you choose.

    Did no one read the settlement statement before signing?   The attorney who screwed this up needs to know.  Half a percent is not a small error.   Why pay an attorney if the attorney isn't going to make sure the transaction is completed as per the contract?   Yeesh! 

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