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Our realtor gave us the Buyer's Agency Agreement form just before signing a contract on a spec new build home. It states that if we default on the purchase of the home, we are still responsible for paying her the commission, out of our pocket. We find this to be very unfair and asked her to omit this clause, but she says she cannot. Is this stipulation standard and is this the truth? That she CANNOT change anything on the form or add anything, due to state regulations? Or is she just unwilling to make this change...
Since an agency agreement is required in NC for the agent to write an offer for you, and we are working in a sellers' market where you have to move quickly or probably lose a house...
Never wait to sign a buyers' agency agreement until you are writing an offer. An offer is a completely different transaction between you and another party, while the agency agreement is between you and the agent/firm.
Always ask for a copy of the agency agreement upon initially meeting an agent you are considering engaging. Getting it right away helps you review at your own pace and sign without the pressure of a transaction hanging over you.
Always engage the agent as soon as possible, in writing, and understand the document.
Never sign the agreement without a clause allowing you to terminate the agreement at any time.
If you are looking at NCAR Standard Form 201, Exclusive Buyers' Agency Agreement, there is a provision for an instance where you default on the terms of any contract into which you enter.
If you are concerned about that and the agent cannot clarify to satisfy you, you should access legal counsel to explain the agency agreement.
I think it is a FAR more intriguing circumstance you report, that you actually have an offer on the table before you even have a buyers' agency agreement.
Read the paragraph in this brochure entitled "Buyers' Agent." http://www.ncrec.gov/Brochures/WorkingwAgents.pdf
It clarifies that you will have a written agreement prior to a written offer.
You might access legal counsel regarding that situation in the agency relationship, too.
Thanks MikeJaquish. We did not know this but now will obviously never make this mistake again.
I read the working with real estate agents doc you linked to. Interesting. Yes offers have been made and we are all the way to the point where we have a contract waiting for our signature but this is the first time we have gotten the buyers agency agreement. The form working with agents says that if such an agreement was not signed she can no longer represent us or be our agent. Does this mean she is not our agent for this purchase and we are free and clear legally to find an agent who is willing to not include this stipulation in their buyers agreement?
We have not signed a buyer agreement clause and we have not signed a contract. Offers have been made and a contract drawn up but we haven't signed it yet because we were waiting on one addendum that we just got yesterday, the same time we received the buyer agency agreement.
We feel trapped, like if we don't want to sign the agreement as it stands (she won't make any changes) that we can't get the house. But maybe that is not correct. She stated in an email if the agreement is a problem then she cannot represent us.
We have not signed a buyer agreement clause and we have not signed a contract. Offers have been made and a contract drawn up but we haven't signed it yet because we were waiting on one addendum that we just got yesterday, the same time we received the buyer agency agreement.
Did you ever review and/or sign a "Working With Real Estate Agents" brochure or document? (It comes in a couple different formats, with the same verbage.)
No. It came attached to the buyer agreement yesterday. We purchased a home several years ago and we likely signed it then, but that was a different house with a different realtor and years ago.
We feel trapped, like if we don't want to sign the agreement as it stands (she won't make any changes) that we can't get the house. But maybe that is not correct. She stated in an email if the agreement is a problem then she cannot represent us.
The builder will be glad to sell you the house, with or without an agent. They work with unrepresented buyers all the time.
Maybe your agent should be the one feeling trapped, for not taking care of business and getting hired.
In fairness, her firm may not allow her to alter the agreement.
I am wondering if we don't work with her to complete the sale if she can then go after us for what would have been her commission. We had no written agreement but she put offers in for us.
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