Thread: Buyer Rep Agreement Question

Without seeing your specific contract it would be hard to say. Plus that could be considered giving legal advice and that is best left for an attorney. I would suggest asking your agent to better explain this to you. Sometimes people get mad that I want to take my time explaining every little thing on a contract but your situation is the very reason I do it.

I understand what you are saying about not wanting to give legal advice.... but can you at least say if you are familiar with this tactic at all? Anything useful?

Without seeing your contract it is impossible to say. The buyers agent contract used in my state has several different ways to specify how I will be paid, which properties it covers, etc etc. And my contract has a blank spot to fill in regarding a specific amount. But more importantly is which boxes are checked regarding who pays and how.

Again please talk with your agent, it should take only a phone call to straighten this out. I am trying to be as helpful as I can but I cannot give answers about a contract I cannot see, am not familiar with,etc. Again no legal advice intended.

This is common for a buyer agent agreement. Ultimately it is the buyers responsibility that the agent get paid although 99%+ times it will be paid by what is co-op by the listing broker.
The only question you need to ask your agent is if in fact the co-op falls below that 2.5% where you would be responsible for the difference. I'm pretty sure you are fine and being a bank owned property the buyer agents commission is normally at least that amount.
I have never had to have a buyer pay my commission even for FSBO over many transaction.

It is a good question to ask since it can be confusing in how the agreement is written up.

Cross out that section, initial the change and give it back to your agent.

You have already found the property so the agent does not need this protection unless they know the commission is less than the 2.5%.

thank you for all your responses and information....

what i have found is that this does in fact make me responsible if the bank does not meet his 2.5% - this is not acceptable to me. as an FHA buyer who clearly does not have the extra money for a large down payment or extra fees, I am unwilling to sign anything that will make me responsible if the bank decides to low-ball the commission fees.

i have heard that this is NOT common in california, and that i should in fact not sign this agreement at all. not only is he trying to secure his commission, but he was attempting to lock me into a 6 month agreement of exclusivity - which i am being told is also way too long and not acceptable.

bottom line i am being told by friends and family not to sign a buyers rep agreement.

any additional comments or points of view on this topic would be greatly appreciated.

thanks

By law we have to have our buyers sign something so I have them sign a "non-exclusive buyer agency agreement". This just means I represent the buyer and they are not obligated to work with me or pay me.

I am pretty sure CA has the same type of agreement available.