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Vlad K.
  • Investor
  • Berkeley, CA
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Real Estate Agent Contract - Is this normal?

Vlad K.
  • Investor
  • Berkeley, CA
Posted May 26 2015, 20:47

So I’m making an offer on a place in Pittsburgh, PA and my realtor sent over the purchase agreement and agent contract. I’ve never seen a contract like this (my other property is in OH and my friends have purchased in CA)

It seems like I’m being asked to pay $595 whether or not my offer is accepted. Also, since 3% of the sales price is less than $2000 I will have to pay the difference. Is this normal!?

The contract lays out the following stipulation in regard to the fees:

Broker’s Fee, paid by Buyer to Broker, is as follows

  • (a) In a purchase transaction with a seller represented by a real estate broker the fee is 3% of the sales price OR $2000, whichever is greater, AND
  • (b) In a purchase transaction with a seller who is not represented by a real estate broker the fee is 3% of the sales price OR $2000
  • If the amount received from the listing broker is less than the amount in above, Buyer will pay Broker the difference, unless seller agrees to pay the difference as a term in the agreement of sale.
  • $595 of Broker’s Fee is earned and due (non-refundable) at signing of this Buyer Agency Contract.

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