Is a buyer's agent necessary for a new home to be built

[johnrex62]

Originally Posted by MommyV

Nope, never heard of that.

The only way that could happen if there was a breach of contract between the buyer and the agent. Was there a contract between those 2 parties? What were the terms of the contract? Etc...

Absolutely correct! If you have a buyers agent, then you must have a contract. If not, then you do not have a buyers agent.

Originally Posted by MommyV

I've cancelled contracts on 2 new construction homes and have not gotten sued or ever hear mention of it. The first one had an easement accross the back yard when we clearly stated we wanted to build a pool and the second one had to be dropped because my house hasn't sold yet.

There are almost always contingencies in contracts when purchasing a home. At least one of them is a mortgage contingency.

You seem to be confusing the sales contract with an agents contract. I assure you that everytime a real estate agent gets paid, there is a signed contract between them and at least one of the sales contract parties. Normally the sellers will have a agent contract to sell the property. This is what defines the commissions of the selling agents, NOT the buyers agents.

Even with a valid contract and no applicable contingencies, it is probable that you can breach a sales contract and not be sued. Many Real Estate agencies do not want the negative reputation of being a suit happy company or being seen as having the potential to sue when things don't go as expected. Many sellers won't sue because they would rather let it go and get the house sold without the hassle of a lawsuit.

Likewise many burglars commit crimes without being caught and more than a few get caught and never convicted, regardless of what the law says. Practicallity sometimes overrides what is legally correct.

[carolina_guy]

Originally Posted by johnrex62

Unless the laws in your state are very different than those I am familiar with, you are wrong in this description.

A buyer's agent must be paid by the buyer in order to create a binding contractual relationship. Without the transfer of value between the parties, a contract is not created. Unless the buyer is paying the fee, there is transfer of value from the buyer. If the seller pays the fee, then there is a transfer of value from the seller and a delivery of a buyer (also of value) from the agent and thus a seller-agent contractual relationship.

IF the buyer pays the fees, those fees could be conditional or absolute, depending upon the agreement. If absolute, ie i give you $1000 to act as my agent.., then the fee is earned regardless of the sucess or failure of the purchase. If the fee is conditional, ie.. 1.5% of the purchase price, then it is only earn if the sale is completed.

It is very possible to owe a commission without a purchase, depending upon the language in the agent agreement. Sometimes the commission is earned upon entering into a contract, sometimes after a set time period or number of showings, sometimes immediately upon signing the contract.

My peeve with your statement is not that a realtor CAN be a buyer's agent, but that you seemed to indicate that they can be a buyer's agent simply by telling the buyer that and still be able to accept a commission from the seller. This type of agent could be considered a dual agent, execpt that unless the buyer also pays a fee they are legally only a seller's agent since that is their only contractual partner.

This is NORTH CAROLINA dude, get a grip.

[MommyV]

Originally Posted by johnrex62

Unless the laws in your state are very different than those I am familiar with, .

Ding.... I think I heard a bell!

[berryjuice4life]

Let me add we do have buyer agency contracts so you WOULD represent the buyer but again the SELLER pays the commission...but you can have an agent represent you in your best interest without signing an agreement but I always recommend you do...

[MommyV]

Originally Posted by johnrex62

Unless the laws in your state are very different than those I am familiar with, .

Ding, ding, ding, ding....

[md to nc]

Originally Posted by MommyV

1st or 2nd year law student or just aspiring????

ROFL, that was exactly what I was thinking. Speaking just like textbook, LOL

[md to nc]

Excuse me if I am wrong, but whenever I sold a house previously, I, the seller, always paid the commission. I, as a buyer, did not but my buying agent was not working for the sellers and my selling agent was not working for the buyers. So I guess NC law must be the same as PA law and MD law because this is all I have ever known.