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Thanks for confirming my thoughts. Yes, I am in Massachusetts. We are first time homebuyers and I guess it is obvious we didn't do enough research before signing. Now I am looking at other contracts on the internet and they all have an end date and only try to collect commission for homes that were located by the agent. I will check with our state RE commission to see if it is enforceable in our state. If anyone is interested in seeing the contract just out of curiousity let me know and I will gladly forward it over to you.
As far as not having a contract end date I see that the National Association of Exclusive Buyers Agents and the Massachusetts Associate Of Exclusive Buyers Agents both list having a start and end date in contracts as part of their code of ethics and standards.
Here is what I would recommend you do in this situation. First and foremost, find a new Realtor when you are ready to start the process again (which I know you were already planning to do, hence the reason for this thread). Next I would find a Real Estate attorney locally that you would have represent you on your purchase and have him look at the contract to find out if it is even legal and binding in the first place.
Third, send them your own cancellation agreement stating in your own words that were not informed in detail everything in the contract, that you were unhappy with their services (which is why you are seeking a new buyers agent, so this one shouldn't be hard), and that you wish to terminate your affiliation with their services.
CC your attorney on the letter, make sure it's CC'd on the one you send to the Broker and send it Certified Return Receipt Requested.
Discuss all of this with your atty prior to sending anything because contract laws vary from state to state which changes some things that you would say.
We signed an exclusive buyers agent agreement back in June. Now we would like to terminate it because the contract has no end date. When we look at the termination agreement it states we will pay commission on any house that we purchase that was for sale during the agreement for 6 months after temination.
Is this standard? I find that most contracts on line are for houses that were "located" or shown by the agent.
I spoke with the owner and he says that he will not alter the termination agreement.
While we are not currently going to purchase a home, but our situation may change before the end of six months and we do not want to use the same agency.
Any ideas or tips for how to get out of this situation?
Thanks!
well
It is I believe a NAR or a real estate law that if there is no end date that it is ended after 1 year
you can always cancel your agreement but it must be in writing
I've never seen a contract w/o an end date. I don't know if it's even legal. If the agency won't sign a termination I'd recommend calling a real estate attorney in your area and asking them. That sounds a bit underhanded to say the least.
Linus, the commissions are listed in black and white. Agents aren't trying to hide anything from buyers or we wouldn't print it. I don't know why you keep thinking all agents steer buyers. It's great when we make a little extra on a deal but we don't steer. That advice is a great way to get a buyer in trouble. Realtors a professionals that guide someone through an expensive, complex legal transaction. You want someone to make sure you a protected. It sure can be an expensive learning experience for a buyer.
They will sign a termination. The thing is the termination agreement they sent says they have the right to commission on any home that was put up for sale during the time of the agreement for six months after the agreement is terminated. This is instead of saying they have rights to commission on any house they "located" or showed to us.
I don't have a problem at all with paying commissions if it was on a house that they located.
I spoke with the broker and they are unwilling to change the wording on the termination agreement to say this.
why is everyone so gung-ho on getting an attorney?????
it clearly states in black and white on your contract that you can terminate the contract as long as it is in writing
you don't need an attorney for that
if you have red flags or are concerned about the wording in your contract
cancel the deal or at least talk to the agents broker first
most times the expense of an attorney is just that
AN EXPENSE
They will sign a termination. The thing is the termination agreement they sent says they have the right to commission on any home that was put up for sale during the time of the agreement for six months after the agreement is terminated. This is instead of saying they have rights to commission on any house they "located" or showed to us.
NO NO NO NO NO NO NO NO NO NO
THEY CAN NOT DO THAT
you need to read again carefully
they CAN recieve a commission on any home that THEY HAVE SHOWN YOU for a certain amount of time that you agree to typically it is 90 days but as most things in real estate are...that too is negotiable
oh and there is and there is an easy way to make that clause null and void anyway
just sign a buyer brokerage agreement with another agent
This is the exact wording of the termination agreement:
Reference: Exclusive Buyers Agreement Dated 6/27/2007 between Buyers Network Inc. and ______________________.
It is agreed that the above referenced Exclusive Buyer Broker Contract (to be referenced as the "agreement") is terminated as of ____________ per the request of ___________________, for the reason of ________________________, and it is further agreed that if, within six months after the date of this termination, the client subsequently purchases any property made available for sale while the agreement was in effect, the client agrees to pay the fee outlined in the Agency Compensation / Commission section of the Agreement between the Client and Buyers Network Inc.
_____________________________________ Date____________________
Agent or Authorized Representative
The recommendations to seek the advice of a real estate attorney are probably adviseable, especally if you will buy a house within 6 months. I will aso add the following . . .
I've said it before and I'll say it again. Never, ever sign a buyers agency agreement. They're written by the agents for the benefit of the agents. It's the fox in charge of the chicken coop situation all over again.
50 years ago, no such thing existed or was needed. The same thing goes for 30 20, and even 10 years ago. People hired an agent to find them house, they found a house, and they bought a house. That's the way it worked for me on 4 SFH's in the last 8 years and many more before that.
I never needed to sign a buyer's agreement, and was never asked to sign a buyers agreement. The agents know that they're protected by law if they show me a property and then I buy it using the services of another agent. Since they're already protected, why do they need it if not to add other benfits for their interests beyond what is already established?
If you take a look at your agreement, I betcha' you're going to find a clause in there that your buyer's agent will get a 3% commision. What if a listed property in the MLS has something like a 2.5% or 2% for the agent? What happens? The answer is that you have to cough up the missing amount to equal what a 3% commission would have returned . . . on top of what you're paying for the house. That's criminal at worst and unethical at best, in my opinion, especially when the people who get caught with such things are most often the less sohisticated buyers, and usually less able to afford the added expense.
If for some reason the realtor needs a buyers agency agreement before he can make an offer on a property for you, then sign one just for that property only. It should list the address, date, and date of expiration. Otherwise, there should be no need for such things.
There never was a need for them and no need exists today, other than to screw unsuspecting clients. Personally, I would find a different agent or agency if they demand that one be signed. Not everyone requires them, and they're not required by law. They're only required by the foxes who want to be in charge of you, the chickens, so they can increase their chances of having you for breakfast.
Remember one thing, you're the boss. You're the one with the money to spend, and that's what counts. You're only hiring the agent bacause of their expertise and knowledge in a specialized area such as real estate.
That doesn't make them the boss. It makes them a skilled and valuable employee. As such, you determine what you will agree to do, not them. If they demand something beyond what's required and what you're willing to accept, fire them and find something else. They're a bad employee. It's as simple as that.
In the meantime, a skilled attorny will determine if the agreement is enforcable or not. If it's not enforceable, he can write them a letter to cancel the contract and advise them that, should they attempt enforcement, they should contact him because he will be your representive both inside and outside of a court action. That should take care of the problem or you.
you need to read again carefully
they CAN recieve a commission on any home that THEY HAVE SHOWN YOU for a certain amount of time that you agree to typically it is 90 days but as most things in real estate are...that too is negotiable
oh and there is and there is an easy way to make that clause null and void anyway
just sign a buyer brokerage agreement with another agent
I never realized that signing a new contract with someone else negated the original contract. I'm glad you clarified that.
I really wish I found this forum sooner. Maybe we wouldnt have made these mistakes.
Last edited by buyerinma; 11-18-2007 at 08:21 PM..
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