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We are first time home buyers and our agent agreed to only take 1.5% of total 3% buyer agent commission and return the rest 1.5% to us towards closing cost.
He said he would submit a broker letter after we sign the contract. We donot have any written agreement though, only verbal
Please advise how this works.
1. Is it realistic, has anybody done this before?
2. Is there any time line to produce the broker letter as we have already signed the contract and builder can start building anytime in 2 weeks.
I have always put the language in my representation agreement.
Under the special or other provisions section in the listing agreements I always write:
"Broker shall concede back to Buyer at the time of closing one half (1/2) of the brokers total commission, not to exceed three percent (3%) of the total sales price"
I also make the broker or agent initial the paragraph or page containing the clause so as to avoid any confusion that I just hid it in the contract and they did not know about it.
If you have an honest broker it should not be a problem, but if the circumstances change it could be a he said/she said battle, in which case he will win b/c he has a signed contract. Personally I would just ask the broker to make a modification to the current agreement, or just toss the old one and sign a new one containing the proper terms.
Seriously? everyone isn't a shark... most people honor their word.
Tell that to every agent who wants their client to sign an exclusive agreement with them. Can't they just take their client's word?
Even you are admitting it could be a problem by saying "most". I'm sure it doesn't ease the pain of the few getting screwed by knowing that "most" didn't.
Tell that to every agent who wants their client to sign an exclusive agreement with them. Can't they just take their client's word?
Even you are admitting it could be a problem by saying "most". I'm sure it doesn't ease the pain of the few getting screwed by knowing that "most" didn't.
They already signed.
It's over!
Either the agent is honest, or they aren't, but grumbling about it afterwards is kinda silly.
Location: Mokelumne Hill, CA & El Pescadero, BCS MX.
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I rebated a buyer $8500 on a handshake in my last transaction. But if I had promised that and not delivered, I'd probably be out of business a month later.
I don't think agents in my office ever bother to sign something that says that they will rebate their clients x amount, or contribute to closing costs, or pay for the home warranty or whatever. It has always been a verbal thing, and because they are honest, it always really happens.
That said, I will say that if a client ever asked for it in writing, we would happily provide something. It isn't a bad thing to have, especially since you aren't technically your agent's client. You are technically the broker's client, through the agent (at least in my state), so what if your agent quit the business, and the broker reassigned you and the new agent didn't agree to the arrangement, and the broker said they didn't know anything about it? There is also the issue that the commission is technically the broker's, not the agent's, so the broker usually has to approve any reductions/rebates.
I don't think it is out of line to request the promised broker approval form. Just approach it that you want to make sure all your ducks are in a row so there aren't any surprises after the house is finished.
This has nothing to do with NJ. You get things in writing. Surely you aren't arguing otherwise, are you?
I'm saying you don't go all "Judge Judy" on someone who is gifting you their earned comission.
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