does having a contract with a listing agent prevent you from buying properties ...

Question

does having a contract with a listing agent prevent you from buying properties ... directly from owners?

What is my legal obligation to close a property that's not listed by an agent?

I did sign a contract with our listing agent that if I close on a property , I am to pay him 0.5 percent.

How much percentage am I legally required to pay him even though I found the property myself?

thanks

Theresa Harris · Answer

If you signed a contract saying you'd pay him 0.5%, then pay him 0.5%.  If this is a house listed through MLS, it used to be that the amount was paid for by the seller...but rules in the US have been changing lately.  Follow what the contract says.

Abel Curiel · Answer

@Mei Zhu It depends on the language in the agreement.

My agreements state that I am owed a commission even if a client finds a property directly from a seller/property owner. Occasionally, I speak with investors who prefer additional language stating what would happen in a scenario where they find their own property.

Does your buyer agreement specify what happens if you find a seller directly?
If not, your agent will likely be owed commission for any property that you purchase within the timeframe listed on your agreement.

Lastly, how are you planning to find your own deals? Are you investing in some form of digital marketing, direct mail, or other outbound lead generation?

If you're spending time and money on lead gen/marketing, I can see why you'd want to save on commission.

Mei Zhu · Answer

I want to clarify my posting. I am from the buyers side. the contract saids 2.5 percent.2 percent generally comes from the seller and the buyer generally pay the 0.5 percent.

I want to know does having a contract with a buy's  agent prevent you from buying properties ... directly from owners? am I required to pay a commision to my agent.

thanks in advance.

Jonathan Greene · Answer

You aren't making sense. If you have a contract with a listing agent, they are selling your house and you have no obligation to them if you go and buy a house unless you signed buyer agency agreement with them.

Side note, anyone working for .5 percent isn't worth working with and you sound like the worst client for an agent in the world. If you buy direct from the seller and you have never done it, who is going to help you with home inspections and title and survey and negotiations?

Nathan Gesner · Answer

If you signed a contract, you are obligated to honor it even if you found the house on your own.

Real estate agents do a lot more than find houses. If you don't know their value, then I would argue you don't have a good agent.

does having a contract with a listing agent prevent you from buying properties ...

Most Popular Reply