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In S. Carolina. Sold our home - signed contract on 6/19, went to CA for scheduled vacation the next day. On 6/27, talked to Buyer's agent on phone about looking at homes in SC upon my return the next day. I gave her a list of MLS's I was interested in, she set up appts. 2 hours and 8 viewings after we met for the first time, I signed an offer on a new house. One document we signed basically stipulated that she was our agent, and would receive 2.5% commission.
Since then, I've dealt only with builder's agent and loan officer. The deal is go. My agent called yesterday to say that I needed to sign a buyer's agent contract - I said send it over.
The contract leaves me incredulous. I don't mind the exclusive agent til 9/08 part - I enjoyed driving around with her - but it says that I have to pay the 2.5% commission if she can't get it out of the seller at closing, or if I decide to walk away. I don't think I should have to pay her under those circumstances. Am I being unreasonable? I haven't done an RE deal in 14 years - have never even heard of a contract like this. What if I don't sign it? Shoot, the closing is 3 weeks from tomorrow, I already signed something that says she'll get 2.5% - what am I missing?
That's not unreasonable at all (and, in fact, is part of the standard promulgated form used in Texas for buyer's agency). Unless, of course, you think that she should put in the work but not get paid. Chances are extremely high that the seller's agent will pay the buyer's agent a commission; here, what percentage it will be is posted in the MLS listings and they have to abide by that, AND it's written onto one page that goes to the title company with the contract. Mostly, that statement is in there to deal with FSBO's.
However, you're the one she's doing the work for, the one whose interests she's representing during the purchase of a home. A lot of a real estate agent's work during contract to close goes on behind the scenes. If she's helped you find a home, and write a contract, and is working to move the contract through to closing, and either the seller (or seller's agent) doesn't pay her, or if you decide to walk away from the deal, it's your position that she shouldn't be paid? If she were your attorney, would you think that she shouldn't get paid if there was the remote possibility that you might be the one doing the paying? How about your doctor? Your mechanic? Yourself, for that matter?
This is standard language in my area, too. I too would cross it out and sign the damn thing, life will go on and your buyer's agent will be paid upon closing.
I find it strange that you should pay even if the deal falls through. I thought one of the reasons agents get paid such a high percentage (and yes, it's a ton of money for 500k + houses) was because some buyers might never buy or take a long time to buy...An attorney gets paid a few hundred $ as a flat fee.
>>If she were your attorney, would you think that she shouldn't get paid if there was the remote possibility that you might be the one doing the paying? How about your doctor? Your mechanic? Yourself, for that matter?
This analogy is silly. There are typically no surprises or mysteries about who's paying service professionals. If attorney does work for me, I pay him. The question you missed is whether I should be expect to cover this agent's contract with the seller if it falls through, and if she can reasonably expect me to sign a contract like this now.
After hearing from you that she should have done more than drive me there w/o an appt, I'm inclined to think no. It would have been nice if she'd stayed while the seller drafted the offer, but she went to a picnic. It would have been nice if she'd called me even once since then, but she hasn't.
It occurs to me that her absence might be impacting her contract with the Seller and she's trying to get some insurance from me?
She has a contract with the Seller, she will get her $12K. I don't have to sign this strangely-timed contract.
The contract leaves me incredulous. I don't mind the exclusive agent til 9/08 part - I enjoyed driving around with her - but it says that I have to pay the 2.5% commission if she can't get it out of the seller at closing, or if I decide to walk away. I don't think I should have to pay her under those circumstances. Am I being unreasonable? I haven't done an RE deal in 14 years - have never even heard of a contract like this. What if I don't sign it? Shoot, the closing is 3 weeks from tomorrow, I already signed something that says she'll get 2.5% - what am I missing?
Thanks,
Trix
It's not unusual with new construction to have procuring cause issues. Often times buyer's show up to look at a new construction home and agents are required to "register" their buyers. The agent is just trying to make sure she gets paid. If you are concerned about the verbiage ask her about it. She will explain the purpose of it.
I don't know any agent that will charge you for a deal that falls apart for legitimate reasons. Buyers that take up agents time and then walk away for no good reason should be required to pay agents for time spent on them.
The thing to remember is that most clauses in contracts are due to the fact that someone didn't act like a good human being.
The thing to remember is that most clauses in contracts are due to the fact that someone didn't act like a good human being.
Bingo! And this applies no matter what kind of contract it is, real estate related or not. In fact, most of the laws (if not all of them) that we have are because some people just don't act like good human beings and the rest of us need to be protected from them in some way, and they need reminding (via the wording of the contract) of just what acting like a good human being consists of.
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