Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
There are a few things confusing about this situation.
First: I'm not sure what an "informal offer" is. The builder certainly seems to think it was an offer, as she is calling it as such. If you made a verbal offer, then it would not be binding in court.
How exactly did you make this "offer". Was it an email? Did you fill out any paperwork? Is it possible it was signed electronically?
Second: In NC, there must be a written buyer agency agreement between agent and buyer at the time an offer is made. If you made a real offer, then you have an agency agreement with the agent. If you, for whatever reason decide to drop her, you will owe her the commission out of your own pocket.
The builder is trying to tell you that if you go forward from this point on and finalize a contract without the agent as your representative, they will not pay the commission. If you continue and let her represent you, they will pay the commission.
Third: IF you have a buyer agency agreement, then it could say several things. It could say that she represents you for a length of time or it could say she represents you for this specific transaction on this particular address. If that's what it says and you do not buy this property, you probably then free to go forward and look on your own or with other agents.
As for the refund of commission...there is a firm in NC that credit a percentage of the sales price (basically a percentage of the commission) back to the buyer or seller.
However, OP - you should have had a conversation with your agent BEFORE you submitted an offer - informal or otherwise.
I'll also add, though, that if your agent has gone this far with you without an agency agreement, then she's not being very smart either. Assuming she knows what she is doing, I would bet you DO have an agency agreement with her and you would owe you commission if you buy this property.
You need to talk to your agent ASAP. If you don't want to talk to her, call her BIC and talk to her/him.
One more thing...if you are without an agency agreement and can/do proceed without representation, don't be surprised if the builders refuse to subtract the commission amount from the listing price. My understanding is they rarely work like that. You might be able to negotiate some upgrades if it is new construction.
I think the OP is referring to some services that refund back part of their commission. If they don't do much for you, make sense to me they refund you back some. You just pay them enough to write up the contract and submit offer. Some minimal work however you define that. You know if I can come up with an automated realtor service, that drafts and submit offer with minimal work on my side, I would probably refund part of the commission depending on my work.
That is fine, if you negotiate it before you have the agent do all the work not after much of the work is done. Problem is the OP had the agent do everything and then wants the agent to pay him.
Sounds like the realtor showed him the home, but now he is trying to buy the house direct from the builder and cut out the realtor.
In this case, yes, its likely the buyer will owe the realtor the commission, not the seller. This is what the builder is trying to warn you about. So if you want this house, you should buy it through the realtor, not the builder. It won't cost you any more money.
Why would you be expecting a "refund" of the commission from that agent? I don't get what you are asking with that part.
By having her write an offer you now have a contract with her (to be your agent) as well. If you were unhappy with her services you shouldn't have had her write an offer (which I am guessing was accepted by the new home builder)for a home. Once you have written an offer that is accepted that agent is the person who is seen as the person who obtained that sale.
You should also stop having her show you homes if you don't intend to buy with her.
Status:
"Made the Retirement Run in under 12 parsecs!!!"
(set 1 day ago)
Location: Cary, NC
43,060 posts, read 76,592,428 times
Reputation: 45383
Quote:
Originally Posted by jojow
There are a few things confusing about this situation.
First: I'm not sure what an "informal offer" is. The builder certainly seems to think it was an offer, as she is calling it as such. If you made a verbal offer, then it would not be binding in court.
How exactly did you make this "offer". Was it an email? Did you fill out any paperwork? Is it possible it was signed electronically?
Second: In NC, there must be a written buyer agency agreement between agent and buyer at the time an offer is made. If you made a real offer, then you have an agency agreement with the agent. If you, for whatever reason decide to drop her, you will owe her the commission out of your own pocket.
The builder is trying to tell you that if you go forward from this point on and finalize a contract without the agent as your representative, they will not pay the commission. If you continue and let her represent you, they will pay the commission.
Third: IF you have a buyer agency agreement, then it could say several things. It could say that she represents you for a length of time or it could say she represents you for this specific transaction on this particular address. If that's what it says and you do not buy this property, you probably then free to go forward and look on your own or with other agents.
As for the refund of commission...there is a firm in NC that credit a percentage of the sales price (basically a percentage of the commission) back to the buyer or seller.
However, OP - you should have had a conversation with your agent BEFORE you submitted an offer - informal or otherwise.
I'll also add, though, that if your agent has gone this far with you without an agency agreement, then she's not being very smart either. Assuming she knows what she is doing, I would bet you DO have an agency agreement with her and you would owe you commission if you buy this property.
You need to talk to your agent ASAP. If you don't want to talk to her, call her BIC and talk to her/him.
One more thing...if you are without an agency agreement and can/do proceed without representation, don't be surprised if the builders refuse to subtract the commission amount from the listing price. My understanding is they rarely work like that. You might be able to negotiate some upgrades if it is new construction.
Quote:
Originally Posted by richb
Why would you be expecting a "refund" of the commission from that agent? I don't get what you are asking with that part.
By having her write an offer you now have a contract with her (to be your agent) as well. If you were unhappy with her services you shouldn't have had her write an offer (which I am guessing was accepted by the new home builder)for a home. Once you have written an offer that is accepted that agent is the person who is seen as the person who obtained that sale.
You should also stop having her show you homes if you don't intend to buy with her.
Seller sub-agency is alive and well in NC, so all that is needed would be a WWREA initialed off that the agent represents sellers when showing homes.
Of course, if there is not even a completed WWREA, the agent truly is a knucklehead, and deserving of the OP and similar types for clientele.
Status:
"Made the Retirement Run in under 12 parsecs!!!"
(set 1 day ago)
Location: Cary, NC
43,060 posts, read 76,592,428 times
Reputation: 45383
Quote:
Originally Posted by faabala
One reason our listing agreements never allow for subagency. It opens a big can of worms.
Yep. But I have a feeling the can of worms in this mess will be interesting before it is all over and done anyway.
You have to go into it with a bit of character and intent to begin with.
There are a few things confusing about this situation.
First: I'm not sure what an "informal offer" is. The builder certainly seems to think it was an offer, as she is calling it as such. If you made a verbal offer, then it would not be binding in court.
How exactly did you make this "offer". Was it an email? Did you fill out any paperwork? Is it possible it was signed electronically?
Second: In NC, there must be a written buyer agency agreement between agent and buyer at the time an offer is made. If you made a real offer, then you have an agency agreement with the agent. If you, for whatever reason decide to drop her, you will owe her the commission out of your own pocket.
The builder is trying to tell you that if you go forward from this point on and finalize a contract without the agent as your representative, they will not pay the commission. If you continue and let her represent you, they will pay the commission.
Third: IF you have a buyer agency agreement, then it could say several things. It could say that she represents you for a length of time or it could say she represents you for this specific transaction on this particular address. If that's what it says and you do not buy this property, you probably then free to go forward and look on your own or with other agents.
As for the refund of commission...there is a firm in NC that credit a percentage of the sales price (basically a percentage of the commission) back to the buyer or seller.
However, OP - you should have had a conversation with your agent BEFORE you submitted an offer - informal or otherwise.
I'll also add, though, that if your agent has gone this far with you without an agency agreement, then she's not being very smart either. Assuming she knows what she is doing, I would bet you DO have an agency agreement with her and you would owe you commission if you buy this property.
You need to talk to your agent ASAP. If you don't want to talk to her, call her BIC and talk to her/him.
One more thing...if you are without an agency agreement and can/do proceed without representation, don't be surprised if the builders refuse to subtract the commission amount from the listing price. My understanding is they rarely work like that. You might be able to negotiate some upgrades if it is new construction.
Sounds good. I was wondering what that kickback (which would be illegal if a true kickback) was this person was talking about.
Status:
"Made the Retirement Run in under 12 parsecs!!!"
(set 1 day ago)
Location: Cary, NC
43,060 posts, read 76,592,428 times
Reputation: 45383
I wonder how a commission "rebate" works on a HUD1 when it is between a sellers' sub-agent and the buyer?
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
