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What's up with the broker gets pay the so called "broker's fee" 180 days after the "expiration date",unless a valid buyer's agency agreement is entered into during the term of said protection period with another licensed real estate broker? What does that means? Any input is appreciated.
This means that if you buy a property without this agent you will owe the agent a commission, unless you hire a different agent and sign a buyer agency agreement with them.
This is a good indicator that you should not work with this agent. They want to lock you into a contract without you even knowing if they are competent to handle your transaction.
This means that if you buy a property without this agent you will owe the agent a commission, unless you hire a different agent and sign a buyer agency agreement with them.
This is a good indicator that you should not work with this agent. They want to lock you into a contract without you even knowing if they are competent to handle your transaction.
Does it means,if i hire another broker company? Different from the one that made me sing this contract?
What it means depends on what else is in the agreement. Is it an exclusive or non-exclusive agreement?
Non-exclusive in my area typically only ties you to the agent on properties the agent procures the original cause for the eventual sale (if one occurs).
Exclusive ties you to the agent for all properties, typically within a given area or state. Part of this is ensuring if they find you a property to purchase they have the right to get paid, so you don't go around them after they have spent time/money assisting you, (payment typically comes from the seller, make sure you understand how/where the payment/compensation is being handled).
When you enter into such an agreement it typically creates a confidentiality, accountability, responsibility etc. for the agent to take good care of you. Choosing to avoid an agency agreement will create a situation where any agent assisting you has no loyalty to you, and any information they collect about you they will be allowed to relay to a seller if you purchase a property within that agents company.
You haven't given enough info to fully understand what your asking, and it is wise to ask an attorney for a full definition of what your getting into, esp. if it isn't making sense.
This means that if you buy a property without this agent you will owe the agent a commission, unless you hire a different agent and sign a buyer agency agreement with them.
This is a good indicator that you should not work with this agent. They want to lock you into a contract without you even knowing if they are competent to handle your transaction.
That is possible, but so far the info the OP has given makes your comment purely assumptive.
This means that if you buy a property without this agent you will owe the agent a commission, unless you hire a different agent and sign a buyer agency agreement with them.
This is a good indicator that you should not work with this agent. They want to lock you into a contract without you even knowing if they are competent to handle your transaction.
That's not necessarily true. In my state we are required by law to do have an agency agreement when representing someone. They were written by the state and cover customer/client relationships.
Without an agency agreement the agent becomes a sub-agent of the seller must work in the seller's best interest only (legally). So I would say there is a chance if the buyer in a state with similar laws and finds an agent abiding by the local laws and customs it is a good thing.
If the buyer has done her diligence she should be have an idea of whether the agent is trustworthy and competent. If the buyer has doubts she should interview a few more agents.
Thank you guys for all the replies,what i understand after reading it several times(i'm the average joe) is that my agent's broker is entitled to get paid the "broker's fee" for up to 180 days after the contract expire,unless i enter into another agreement with another broker.Please,correct me if i'm wrong, i find that disturbing that i wasn't inform of that,needless to say i will ask the agent and if that's how it it i think is not right and i would want out,it's a mess up world we still live in,sad....
Thank you guys for all the replies,what i understand after reading it several times(i'm the average joe) is that my agent's broker is entitled to get paid the "broker's fee" for up to 180 days after the contract expire,unless i enter into another agreement with another broker.Please,correct me if i'm wrong, i find that disturbing that i wasn't inform of that,needless to say i will ask the agent and if that's how it it i think is not right and i would want out,it's a mess up world we still live in,sad....
You sound like you are describing what we would call a protection clause. This is a clause that most listing agreements and many buyer agency agreements have. The purpose of this clause is to protect the real estate agent from unscrupulous home buyers.
Scenario 2: So let's say you spend three months looking at houses with your real estate agent. They find you a For Sale By Owner property which you just love. Your contract with the agent expires in a month. The seller of that property says "hey...dump your agent and I'll take 3% off the purchase price and sell it directly to you." This protection clause would mean that YOU the buyer would pay that fee if you purchased the house they found for you even after your contract expires.
Scenario 2: You find a house with your buyer agent but realize you think your buyer agent is a dolt. So you terminate your contract with them and hire a new buyer agent. The new buyer agent can write up an offer for you without any concerns about compensation disputes because you signed a new buyer agreement which releases you from compensation disputes under your old agent agreement.
The clause is normal assuming you are talking about the protection clause.
Thank you Silverfall,I have a better understanding now,I'm not an unscrupulous buyer,I'm a first time home buyer and I'm full of doubts and I think my agent is not good,it's just that I don't think he is that attentive with me,I know that he's not my personal assistant,but I feel he should be more responsive to my questions and quite frankly I don't think he's doing enough to help me buy a house,I mean,I would think he wants to earn his commission.I feel I'm doing all the legwork by sending him all the houses I like and I think he's not doing enough,I'm kinda frustrated about that,I understand better now that clause in the contract,everyone should get compensated for their work,but I don't think he's doing enough and I taught he had a compromise with me,correct me if I'm wrong,I wouldn't want to have to sign another contract with somebody else in order to get out of this contract and don't pay the fee that I feel I wouldn't have to pay if I'm not satisfied with the services,but if thats the only option then be it.Thank you for all the replies.
I feel I'm doing all the legwork by sending him all the houses I like and I think he's not doing enough
I'm not a real estate agent, but in my opinion, it's normal today for the client to find houses themselves. We have all these wonderful tools on the Internet - why wouldn't we use them? We had a great real estate agent, but I was the one who found the majority of houses we looked at, and I found the house we eventually bought.
It was great that I could do the research myself - we were able to drive by the houses that looked good, and see if the exterior looked as good in person, and if the neighborhood was nice. And if we liked a house, then we'd call our agent and get him to show it to us. We wanted a really nice house for very little money, and we drove by over 100 houses. But we only need to see inside three or four - so being able to do most of it on my own, saved both us and the real estate agent a lot of time and aggravation!
Quote:
Originally Posted by antifeik
everyone should get compensated for their work,but I don't think he's doing enough
Also just my opinion, but the main reason we hired an agent was for the work he did after we found the house. Pushing a deal through? I can't do that on my own! So for me, it's after you find the perfect house, when the real estate agent starts to really earn their commission.
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