Q: We were given a buyer-broker agreement the day after we signed a contract to buy a house. Do we have to sign?
A realtor that helped us find a home to buy gave us buyer-broker agreement the day after we signed a contract to buy a house. We now close on home in a week and she is making us sign the buyer-broker agreement. She never told us we would have to sign any agreement with her brokerage prior to making the offer/signing home purchase contract. She never told us of a $450 admin fee or that if we voluntarily walk away from the house, we would have to pay 2.5% of the purchase price to her. Her name is already listed in the home purchase contract with seller paying commission. What happens if we don’t sign the buyer-broker agreement? We don’t feel comfortable signing a back dated agreement that we never knew about prior to making the offer and now could potentially pay 2.5% of purchase price to realtor if sale falls through.
You misunderstand the document, and who pays the buyer's agent. Our lawyers are also licensed brokers, so we understand your question. It is the SELLER that pays the entire 6% commission, which is then SPLIT in some way with YOUR buyer's agent. The 2.5% you refer to DOES NOT come out of your pocket. The SELLER is paying, because your agent brought a willing buyer to the deal.
Now, your agent should have had the documents executed before the deal. But even if you refuse to sign, the seller will pay the entire 6%. If you don't have an agent, it just means the seller's agent keeps all the commission money.
If you have questions, still, please contact a lawyer in your County. For an hour of his/her time, you can have your entire contract reviewed and explained.
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