What does a buyer indemnification clause mean?
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What does a buyer indemnification clause mean?
Looking to purchase a large tract of land. The contract reads, “Broker: Buyer agrees to indemnify and hold seller harmless from any commission, broker’s fee, finder’s fee or other payment by reason of action by the buyer. Is this saying that I the buyer have to also pay the realtor commission?
Asked on October 5, 2011 under Real Estate Law, North Carolina
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
If you are the buyer of real property (large tract of land) from the seller and if you sign the contract that contains the provision that you write about concerning indemnifying and holding seller harmless from any real estate commissions or fees of any kind means that if you buy this particular real estate, the seller pays no real estate commissions or any fees to a real estate agent or broker, you do.
In essence if you buy this land, any real estate commissions will be paid entirely by you and not the seller.
The significance of this provision is that in most real estate commissions, custom and practice dictates that the seller pays the entirety of the real estate commissions if any to real estate agents involved in the transaction.
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