Bill Lucas
Supporting Actor
- Joined
- Mar 20, 1999
- Messages
- 530
Without reading the agreement most of the assumptions that have been made here are simply that...assumptions. Although you've received a ton of caring advice in this thread you should realize that it should be taken with a grain of salt since a) no one here knows the applicable laws in your state and b) no one here has read the agreement in question.
That said, these agreements are becoming fairly common. They typically guarantee a commission to the Realtor (yes, it should be caplitalized) on ANY home you purchase. However, the agreements can vary and everything is negotiable. If you work with another Realtor while under contract with your current Realtor the second Realtor is entitled to NO commission (again this is a typical contract). The three day right of recission that one person alluded to is typically only applicable on contracts that are signed in your home. This law came about because of encyclopedia sales tactics in the 1960's.
It was the responsibility of your current Realtor to explain the Buyer's Agent Agreement to you. If he didn't you probably have an out. There are many advantages in working with a Buyer's Agent. For instance, if your contract is presented by a Realtor that is not a Buyer's Agent the seller can ask your agent what your maximum offer will be. If the agent knows this information he is bound by law to disclose the information to the seller. If you are working with a Buyer's Agent your Realtor is not obligated to answer the question.
As a background, I spent 18 years as a mortgage loan officer financing homes in Washington, DC, Maryland and Northern Virginia. I've worked with a few Realtors in my day and I'm quite familiar with the entire home buying process. Regards and good luck in your home search.
That said, these agreements are becoming fairly common. They typically guarantee a commission to the Realtor (yes, it should be caplitalized) on ANY home you purchase. However, the agreements can vary and everything is negotiable. If you work with another Realtor while under contract with your current Realtor the second Realtor is entitled to NO commission (again this is a typical contract). The three day right of recission that one person alluded to is typically only applicable on contracts that are signed in your home. This law came about because of encyclopedia sales tactics in the 1960's.
It was the responsibility of your current Realtor to explain the Buyer's Agent Agreement to you. If he didn't you probably have an out. There are many advantages in working with a Buyer's Agent. For instance, if your contract is presented by a Realtor that is not a Buyer's Agent the seller can ask your agent what your maximum offer will be. If the agent knows this information he is bound by law to disclose the information to the seller. If you are working with a Buyer's Agent your Realtor is not obligated to answer the question.
As a background, I spent 18 years as a mortgage loan officer financing homes in Washington, DC, Maryland and Northern Virginia. I've worked with a few Realtors in my day and I'm quite familiar with the entire home buying process. Regards and good luck in your home search.