Hi all. I am a buyer and have a house under contract already. I have been given the clear to close from my lender. Our close date is next week. Anyways, a few days ago my real estate agent emails a buyer/ broker contract and wants me to sign. I am not sure if I should or not. It states buyer will pay broker 2.7% of sale price and $425 for admin fees. Do I need to hire a lawyer? Please, I hope some one can help with some advices. Thanks
No. Too late. You already have an offer out and a contract signed.
That's something that should have been done up front. Your agent will get paid whatever the seller is offering out to buyer's agents. If it's in the MLS, they'll get paid something.
You literally DO NOT have to sign the buyer/broker agreement*. If the agent pushes the issue, complain to their office and the local board.
There's a lot behind the buyer/broker exclusive contract. The core issue is about agency and who the agent represents during the transaction and fiduciary duty.
The agent should have given you an agency disclosure form up front stating who the agent represents.
Without a contract, the disclosure should have checked off "in the interest of the: [x] Seller as [x] Seller's agent." This has to do with the way agency works. Yes. Your agent brought you to the deal. But, without an agreement between you, the buyer's agent works indirectly under the listing agent and for the seller.
With a contract, the agent would have checked off on the agency disclosure "in the interest of the: [x] Buyer as a [x] Buyer's agent." Then the agent would have to protect your privacy and would have a fiduciary duty to you instead of the seller.
Really good agents get the agency disclosure form signed up front like they are supposed to and present the buyer/broker agreement. If buyer's don't sign the agreement, not a big deal (*except in states where it's required). Everyone moves forward.
Having you sign a buyer/broker agreement half way down the road after an offer is out and a contract is already signed is the sign of a weak agent. A seller's lawyer can have a field day with this stuff and will do everything to weasel out of paying a commission because the paperwork isn't in order.
Absolutely not. While transaction fees, that agents attempt to shift to the buyer/seller (and they should be on low dollar deals) are common, that should definitely be discussed and agreed to/rejected up front.
As for the 2.7% commission, absolutely ridiculous. Some experienced, competent agents will have an agreement with you up front where you make up anything less than a 3% commission offered to the buyer agent side......but, that should be revealed Before even showings of those properties are scheduled, let alone an offer even made.
Your agent is Totally out of line....I’m a former agent too.
Thank you for the quick reply. I really appreciate it.
Updated 3 months ago
So I asked my realtor to show me what's the commission is for the buyers/broker. It is 2.7%. Now why is he pushing me to sign this buyers contract?
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