Updated almost 2 years ago on . Most recent reply
New Exclusivity Contract and Buyers Fees in Ohio
Hi, I'm looking at a a new realtor and he asked me to sign an exclusivity agreement and in it compensation to the brokerage is $350 and 3% with a minimum of $3500. He states it's because of that new lawsuit with the seller's fees. Is signing this agreement the case with all realtors in Ohio now? Just curious if this will be the new norm. I'm an out of state investor. Haven't done it with past realtors but also that was before the lawsuit.
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"Ohio realtors agreement" tells us nothing about the physical boundaries of area covered by the contract. If the real estate agent is in Cleveland and you are looking in Dayton and Cleveland -- and buy in Dayton during the time period of the contract -- will the Cleveland agent have his hand out?
And another thing: Assuming you sign the contract and there is a successful closing, does the $350 count towards the closing commission?
It goes without saying that you need to make sure that if your agent receives anything at all from the seller (or his agent), your obligation is reduced dollar for dollar.
Don't let the r.e. agent tell you that something doesn't need to be in your commission agreement with him because "it's understood" (e.g., you are credited for received commission splits). NOTHING is understood that isn't written down. You probably want your offers to specify that the first 3 percent/$3,500 (plus $350?) (whichever is greater) of the Seller's total commission obligation over $3,500 will go to your agent, and that they will split anything over that first six percent/$7,000 ($7,700?) as they see fit. That way commissions are split as they want AFTER your brokerage fee contract obligation is fulfilled.
And another thing: Assuming you sign the contract and there is a successful closing, does the $350 count towards the closing commission?
It goes without saying that you need to make sure that if your agent receives anything at all from the seller (or his agent), your obligation is reduced dollar for dollar.
Don't let the r.e. agent tell you that something doesn't need to be in your commission agreement with him because "it's understood" (e.g., you are credited for received commission splits). NOTHING is understood that isn't written down. You probably want your offers to specify that the first 3 percent/$3,500 (plus $350?) (whichever is greater) of the Seller's total commission obligation over $3,500 will go to your agent, and that they will split anything over that first six percent/$7,000 ($7,700?) as they see fit. That way commissions are split as they want AFTER your brokerage fee contract obligation is fulfilled.