If a customer decides not to move forward after an offer has been accepted on a home, Divvy will review the home for purchase within 48 hours and may choose to terminate or proceed buying the home vacant.
Most of the time, Divvy will choose to terminate the purchase agreement.
If Divvy decides to terminate the agreement:
- Divvy will notify the agent of our intention to terminate
- The agent will prepare and send a mutual termination agreement for signature
- The customer will no longer be able enter Divvy’s program, unless the customer’s termination was due to a material issue relating to the home prior to the end of the due diligence period in the purchase agreement.
If Divvy decides to proceed with purchasing the home vacant (without a customer):
- Divvy will notify the buyer’s agent of our intention to proceed.
- The buyer’s agent will prepare an amendment to provide the buyer (Divvy) with seller credits in exchange for a commission reduction (more below).
- The buyer’s agent will separately let the listing agent and seller know of our desire to proceed and the reduction in commission in exchange for seller credits.
- The buyer’s agent will amend any commission agreements as needed and notify the title of the change in commission.
- The customer will no longer be able to enter Divvy’s program.
Vacant Purchase Commission Policy
- For any home purchased vacant, the buyer’s agent will reduce their commission to 1% of the purchase price of the home. The amount reduced will be credited to Divvy, the buyer, in the form of seller credits.
- E.g. A $300,000 home with a 2.5% buyer’s agent commission ($7,500) will be reduced to 1.0% ($3,000) and the difference will be provided as seller credits ($4,500) to Divvy.
- The commission reduction allows Divvy to compensate another agent to fill the home post-closing and cover some of the costs of a vacancy period.
- If the buyer’s agent finds another customer to take the place of the original customer pre-closing, the agent will receive the full buyer’s agent commission (typically 2.5-3.0%).
- In the event another agent’s customer takes the place of the original customer pre-closing, the original agent will receive the reduced 1% commission and will assign the purchase agreement over to the new agent. The new agent will receive the remaining share of the commission pursuant to a referral agreement.