Contingency Specifying Commission

[Zyngawf]

I goofed up my last sentence, sorry.

[Silverfall]

Originally Posted by Nocontengencies

What I don't get is why the seller has a copy of the buyers agreement. This agreement is made between the buyer and the buyers agent. It never should have been sent. It has already been pointed out that sometimes these are written so the the buyer is making up the difference, but really the seller doesn't need to know this. I think what the seller should just look at what the bottom line is as far what the bottom line after they pay buyers closing costs and is that number acceptable.

I find that part highly bizarre as well. I have no idea why the buyer agent shared the contract. It is irrelevant. I think the buyer agent needs some time with an attorney on how to get this negotiated properly.

[Zyngawf]

Originally Posted by Silverfall

I find that part highly bizarre as well. I have no idea why the buyer agent shared the contract. It is irrelevant. I think the buyer agent needs some time with an attorney on how to get this negotiated properly.

I don't think an attorney is necessary. I just think the sellers agent needs to explain to the seller.

I also think that just because a buyers agent sends one of these does not mean it has to be presented. You are required to present all offers. The buyers agreement is another contract entirely. It would be the same if the buyer inadvertently sent his dental records. I don't think I would be required to present them.

This issue was addressed at one of our office meetings telling buyers agents to quit doing this. It really only confuses everyone.

[Silverfall]

Originally Posted by Nocontengencies

I don't think an attorney is necessary. I just think the sellers agent needs to explain to the seller.

I also think that just because a buyers agent sends one of these does not mean it has to be presented. You are required to present all offers. The buyers agreement is another contract entirely. It would be the same if the buyer inadvertently sent his dental records. I don't think I would be required to present them.

This issue was addressed at one of our office meetings telling buyers agents to quit doing this. It really only confuses everyone.

I think the buyers agent needs training on contracts and how they work. Just telling someone to stop doing something doesn't help them understand the nature of contracts. All that will happen is they will do something else in the future. Better to train agents to understand why commissions aren't part of the buyer and seller contract so they understand contracts.

[FalconheadWest]

Negotiating the commission within the offer is against the Code of Ethics. That is good to report...

However, the buyer's agent can still get all the commission he wants by writing in closing costs, which is a very traditional thing. The buyer's agent then sends an invoice to the title company and it appears on the HUD as a buyer's expense, and the closing costs will cover it.

Don't worry about what the agents make. Just worry about your bottom line. Does the bottom line meet your criteria for selling the house? Then sign it or counter it.