I have a buyer client.
I found them a home.
We have a binding contract as of 12/10/06.
We were schedule to close on 1/16/07.
I found out Friday that the title has a cloud. (seller's spouse died in 2005, intestate)
Listing agent knew (by her own admission) when listing agreement was signed.
In this case, am I due the commission the seller agreed to in the contract for bringing a ready, willing and able buyer?

Why not work on clearing the title versus killing the deal? It will take a little bit of time but the title company can take care of the "cloud" and still be able to close.

Sure you're due the commission.................just as soon as the transaction closes.

An unprobated estate is not a huge deal especially if the spouse is the only heir.

There is a 6 month period (may vary by state) in probate which gives any potential creditors a chance to present a claim against the estate.

For that reason any assets of the decedent (the dead guy) cannot be disbursed, i.e. proceeds from the sale of real estate.

HOWEVER, there is a way around that.

Real estate can be transferred before the time period is up if the title company agrees to hold the seller's proceeds of the sale in escrow and commissions and other routine costs of sale can be disbursed.

I know this works in Tennessee because I have done it on several occasions.

Well it depends,the commission really isn't yours it belongs to your principal broker unless you are the principal broker and you own your own company.

If your split is high 90/10 or something like that your principal broker won't pursue it because there is not enough money in it for them and they do not want the bad publicity for there company of suing the seller.

I agree I would work on clearing title to make the deal go through it should not be a big deal.If you sued it could take years to get the money.

My clients do not have time to wait for the title to clear. One is being deployed and wants to be sure his family is settled before leaving. We just did a T&R and are looking for a new home. I just don't understand why anyone would list a home knowing the title was clouded?! Anyhow, Thanks for all of your comments.

IF you client wants the house have him or her give someone they trust (family, friend or attorney) specific power of attorney to close the house for them. NO big deal!!!

Dana,
Contact a local real estate attorney as title should be able to be cleared in a very short time as the death occured well over a year ago.

Also file a complaint on the listing agent. The listing agent should have solved this problem instead of waiting till an offer was accepted.