This section is from the book "Practical Real Estate Methods For Broker, Operator & Owner", by Thirty Experts. Also available from Amazon: Practical Real Estate Methods for Broker, Operator, Owner.
It often happens that after the negotiations have ended satisfactorily to the owner, and the parties are about to enter into a contract, the owner holds up the broker by endeavoring to procure a reduction in the commission and refuses to enter into a contract unless such concession is made. It may be stated, as a general rule, that if the broker, under such circumstances, makes a reduction and it turns out that the contract would have been made without such reduction having been acquiesced in, such modification of the original contract for commission made with the owner is without any consideration in law and is void, and the broker is entitled to his full commission. And this is so not only in the case of a reduction in the amount of compensation, but also in the case of an agreement made under similar circumstances that the compensation should not be paid until the delivery of the deed, and if it happens that the deed, by reason of any fault of the vendor, is not delivered, the broker, notwithstanding the agreement made by him, is entitled to his compensation. If the owner desires to protect himself against any such contingency, he must, in the first instance and before negotiations are started, make an agreement with the broker that the sale shall be conditioned on the broker waiving commissions in case the deed is not delivered, and even in such case the broker is entitled to his compensation if the consummation of the contract fails by reason of a defect in the title of the vendor or other fault on his part.
In conclusion we desire to state that we have endeavored to present in a cursory way but few of the many questions that may arise between broker and principal. Many of these questions may be avoided by a little care and investigation on the part of both parties. A person engaged in the real estate business, as a rule, acts equitably and fairly to the broker; his assistance is absolutely necessary to the profitable carrying on of his business, and he cannot afford to resist payment on technical grounds. And a reputable broker also realizes that he cannot gain the confidence and good will of an owner by harassing and annoying him with unjustifiable demands.