Received a message from a real estate agent who has offered to supply me with some off market deals they come across. Before provided me with listings they are requested that I sign and return a confidentiality agreement which states the following;
"The Premises is being offered to Potential Buyer as a Principal only and Potential Buyer or its’ agents acknowledge that it will not receive any brokerage commission from seller in connection with the purchase of the Premises"
Can someone clarify this statement for me? What exactly does this mean? I know I am the potential buyer and the Premises in the property being offered, but I am lost after that.
First of all, I'm not an attorney. But I'll add my opinion. The first sentence basically says that you are the buyer, not going to wholesale or assign it. Although, as a Principal it is possible to wholesale it. The second part says that the agent will not get paid from the seller of the property. Probably so that the agents broker doesn't feel like she's being cut out of a deal.
May not be accurate. But that's what I think.