sellers agreement

[MillerDecaXC]

im a first time home buyer, and i was just wondering what all is in the sellers agreement, and what should i look for to make sure it is there?

[Jim Erickson]

Seller's agreement is the contract between the seller and broker to market the sellers home.

You may be thinking of a purchase agreement which is a contract to purchase to property between the buyer and seller. I would suggest that you team up with a local real estate agent to help you in the process of buying a home.

[MillerDecaXC]

yes, i have an agent, i was mainly concerned about that 3% commission. i heard that if the seller's agreement doesnt say that the seller pays the realtor, then I have to pay it.

Am i allowed to see the seller's agreement before i make the purchase? and if its not there, can i ask them to change it so that the seller pays the 3% to my realtor instead of me?

[Jim Erickson]

If you are working with an agent, did you sign a contract, maybe called a Exclusive Right to Represent Buyers Agreement?

If you did, how you compensate your agent will be spelled out in this agreement. It could have verbage that indicates that your agent will be compensated if the sellers broker offers compensation to any buyer's agent in the transaction.

If you did not sign this type of contract, then you have no obligation to compensate your agent in a transaction. Your agent will need to be compensated by the sellers broker. (Note: if you want full representation in any transaction (IMO you should) you should have a written agreement between you and your agent. Before signing this agreement, make sure you understand how your agent will be compensated in any transaction senario.)


I am not an attorney nor am I giving legal advice. Consult with an attorney.

[MillerDecaXC]

my realtor gave me a contract like that, but i didnt sign it yet. so if i dont sign it, then the seller will compensate my agent?

[Codythebest]

No need to read any seller's agreement.
If you're afraid about something like that, I'll put a contengency in the purchase and sale agreement:
Seller and buyer understand and agree that buyer will not pay any real estate commission, at any time, to any broker involved in this transaction.
All and any real estate commission, if any, will be paid entirely by the seller.

[tarheit]

I'm not 100% sure the 2nd contract (the purchase contract) will necessarily void or override the 1st since it is a contract with the buyer, not the agent.
(ie. I can't have Tom sign an agreement that I don't have to honor the agreement with Joe (for which Tom has no legal authority over)).

If you have already signed a buyers agreement, you should seek a new agreement with the agent.

In general, our buyer agreements simply read that you'll pay the 3% only if you use someone else or buy on your own, but if you use us we will negotiate the comission from the buyer (you pay nothing). It's simply to protect our investment in time, advertizing, etc. in finding a home for you. Still, we rarely need to use one.

You could however, put in the purchase contract, that the seller agrees to pay 3% to the buyers agent (or the difference to make up 3% if there is some commission going to the buyers agent), and that would be binding and get you out of buyers contract.

-Tim