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The amount that you agree to pay the agent and the time period is NEGOTIABLE and don't let anyone tell you otherwise. The buyer wants a short period of time and many (not all agents) will want the longest period possible. The same goes for the fee.
Last time I checked (at least in my state), the seller pays the Realtor's commission and not the buyer. I have never heard of a Realtor charging a fee to the buyer for their services.
Last time I checked (at least in my state), the seller pays the Realtor's commission and not the buyer. I have never heard of a Realtor charging a fee to the buyer for their services.
Does the BA employment agreement that your buyer signs specify how much you will be paid? If so, I would call that a "fee". Most employment agreements, including a BA agreement, specify the amount ('fee") that is owed to the agent and the buyer is ultimately responsible for this.
While the seller may pay commission, if the co-broke commission is less than the BA "fee" the buyer typically owes the difference. This is particularly relevant in FSBO situations where the seller may not be willing to pay the buyer agent. Perhaps you work under a different model, if so would be interested to hear about it.
Does the BA employment agreement that your buyer signs specify how much you will be paid?
I have NEVER seen such a clause or requirement and neither has my broker. This discussion is the first time I had ever heard of such a situation. What it all comes down to is the commission % as specified in the MLS and/or if there is a clause that stipulates when and how the commission could be reduced. I would NEVER expect or ask a buyer to make up any difference that I did not get paid.
Nothing in the sale/purchase contract stipulates what commission I will be paid at closing. I do not ask any of my buyer's to sign a buyer's agreement with me or my office. The only time commission is mentioned in a contract with my office is when a listing agreement is drafted with a seller. The commission paid to an agent/broker is never discussed with the buyer, nor should it.
I have NEVER seen such a clause or requirement and neither has my broker.
Check out the BA agreement from your state's RE Association. I bet there is a section that addresses compensation owed to the buyer agent (from the buyer). Section #6 in FL.
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I would NEVER expect or ask a buyer to make up any difference that I did not get paid.
Most BA agreements (from state RE Associations) have this clause.
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I do not ask any of my buyer's to sign a buyer's agreement with me or my office.
Then the BA agreement is a moot point for you. How do you determine compensation for a FSBO?
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The commission paid to an agent/broker is never discussed with the buyer, nor should it.
If the BA agreement specifies BA compensation from the buyer, the buyer is entitled to know their BA's co-broke commission.
Check out the BA agreement from your state's RE Association. I bet there is a section that addresses compensation owed to the buyer agent (from the buyer). Section #6 in FL.
Most BA agreements (from state RE Associations) have this clause.
Then the BA agreement is a moot point for you. How do you determine compensation for a FSBO?
If the BA agreement specifies BA compensation from the buyer, the buyer is entitled to know their BA's co-broke commission.
1. There is no requirement for a BA agreement, nor has anyone from my office ever used one. Some Realtor offices may require it but not mine.
2. I have never worked with a FSBO by choice, so I cannot comment.
3. I have never been compensated by a buyer and it would not do so without consulting my broker so I won't comment on that. I am subject to my broker's office polices and that is that.
I cannot say what "most" buyer broker agreements state, because there are probably several hundred of them, including association drafted and individual agent, and brokerage drafted agreements.
However, compensation is an important part of any employment agreement, and the buyer broker agreement is the place for it to be addressed and negotiated.
The AAR agreement has a section that states:
"The amount of compensation shall be:"_________________________, or the compensation Broker receives from seller or seller's broker, whichever is greater...." (there is more but that's the meat of it.)
An agent may have a minimum commission and this is the place to discuss that. Short sales usually pay the agent less commission than is offered by traditional sales, and require more work, so an agent may wish to be paid the same amount as he would receive on a traditional sale.
This compensation agreement up front protects the buyer from an agent later saying that he was to be paid x commission from the buyer. The buyer broker employment agreement spells it out.
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Wow, I've never considered a BA contract, nor would I.
Any RE contract without an escape clause is a frightening proposal. (So much can happen on all sides, including the Gov agencies / permiting zoning / taxation, THEN there are the title / lein and surveys / then inspections,,,,)
Can of worms, I would be pretty helpless if I thought I needed to sign a buyer agreement, and to think they want to nab you for leases too... Run, don't walk (And yes I have done transactions in TX. tho not frequently)
I am also in Texas and signed a 6 month BA agreement. I would not, under any circumstances, sign the agreement that has been presented to you. I ended up with a completely incompetent and unprofessional agent - luckily, she let me out of my agreement, but if she hadn't I would have been stuck waiting until it expired to look at houses. I would only sign one now on a property by property basis. I would also consider one with a very clear escape clause. Knowing what I know now, if an agent presented me with a general, long-lasting BA agreement with no escape clause, I would walk away immediately. I don't think a reputable agent would ask anyone to sign such a document.
I would never sign an agreement like this. I've heard too many horror stories about agents gone bad and folks who got stuck in these.
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