Five months ago I was working with a Realtor and saw about 20 properties. I'm now working with a new realtor who will split their comission with me. One of the properties I saw with the first realtor 5 months has gone down in price by 50,000. I now have some interest in the property and I'm thinking of making an offer. The problem is the first realtor told me since they introduced me to the property they would be entitled to the comission. Is that true? I never signed any type of aggrement with the first realtor, so do I have a future problem?
2007-07-29 13:04:44 · 5 answers · asked by Bo 1 in Business & Finance ➔ Renting & Real Estate
It is true. It falls under "agency law". But it is not always cut and dry and can be worked out with a little communication between the Realtors (past and present) before an offer is written.
FYI, your Realtor isn't giving you half his commission, but may be conceding half of his commission for your benefit. It is illegal for an unlicensed person to receive commission from a real estate transaction in most states
2007-07-29 13:14:17 · answer #1 · answered by linkus86 7 · 0⤊ 0⤋
Yes, you have a future problem, or at least your new realtor does. In most states, a real estate agent is protected for one year after the fact when he/she 'introduces' a property to a buyer. Any of the roughly 20 properties you saw with the first realtor would fall into this scenario.
2007-07-29 21:45:24 · answer #2 · answered by acermill 7 · 0⤊ 0⤋
Your old Realtor is not entitled to any commission split simply because you did not sign a Buyer's Representation Agreement; therefore, you were a customer and not a client. He did not pledge to represent you in writing, nor did you pledge compensation in writing. Essentially your old Realtor acted as a volunteer.
Additionally, Realtors can only split their commissions with licensed agents. However, he may gift any amount he desires, and he may choose to a lesser commission. But remember, commissions are paid by the seller and not the buyer.
2007-07-29 23:44:30 · answer #3 · answered by Interesting 2 · 1⤊ 0⤋
state law controls and you didn't tell us where this is.
in my state, the 2nd realtor could lose his licence -- splitting the commission back to the buyer is illegal here (or so I was told).
my position regarding the 1st realtor would be that at 50k higher, i wasn't interested and had no reason to think I could get the property at a price that i'd care to pay. now, IF said 1st realtor had come back to me after his seller lowered the price and told me of same, THEN I think he'd have a case for his commission if I buy the property. BUT, if he did nothing and someone else brought the now better looking deal to my attention, that someone else [2nd realtor] is entitled to the commission instead of 1st realtor.
AND, you'll want to check your state's laws on this.
GL
2007-07-29 20:13:35 · answer #4 · answered by Spock (rhp) 7 · 2⤊ 1⤋
If he makes a problem with you remind him that a vague verbal contract is unenforceable.
2007-07-29 20:09:05 · answer #5 · answered by Beau R 7 · 0⤊ 1⤋