I am reviewing my first buyer-broker agreement. The compensation section says that Buyer agrees to compensate Broker as follows:
"The amount of compensation shall be 3% of gross sales price, or the compensation Broker receives from seller or seller's broker, whichever is greater. In either event, Buyer authorizes Broker to accept compensation from seller or seller's broker, which shall be credited against any compensation owed by Buyer to Broker pursuant to this Agreement."
Is this typical for an arrangement in which the Broker is representing the Buyer only?
Basically it says "if the seller is not offering 3%, you will pay or or make up the difference". Provided of course you buy the house.
@Mike Cumbie - is that common?
Yes. I would say over hall of the agents I know have similar language