OH Buyer Representation Agreement
Hi there!
I'm new to investing. Is it normal for the RE agent to put into the agreement that I would have to pay the difference if the 3% is not covered fully by the seller? So for example, if the seller is only willing to pay 2%, I have to pay the other 1% at closing. Please let me know as I want to work with this RE agent (I'm an out of state investor) but want to make sure I'm making all the right decisions.
Also, is it normal to require a 1 year contract exclusive working relationship?
Most Popular Reply
Hi! Yes, that is normal contractual language. It is included to protect the real estate agent who may invest significant time and work into helping you find and secure a property, so they can still be compensated if the seller does not cover the full agreed commission.
That being said, it is fairly rare for the buyer to have to pay the difference, especially since the agent can often negotiate for the seller to cover it as part of the offer. The clause is mainly there as a protection and your agent should discuss your options with you before moving forward with a property where you would be responsible for any portion of the commission.
As far as the one year exclusive agreement, you can absolutely ask for a shorter term. A six month agreement is a reasonable request and may feel more comfortable while you are building the relationship with the agent.
- Lauren Nixon
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