Attention TEXAS REAL ESTATE AGENTS?

Question

I am a newly licensed agent in the Houston area. I have a network of Real Estate Investors that I deal with. Want to know how to protect my interest on a sale when I don't have a Seller agreement with the owner but I am bringing a buyer to the table. If I have the Buyer sign a Buyer's agreement, is the Seller obligated to pay my commision? How can I prevent a Buyer from going direct to the Seller? If I have the Buyer sign the Buyer's agreement, and then the two parties do a side deal, what recourse do I have? I'm working with investor buyers who are looking for properties. I get lists of investment properties for sale from other investors or agents representing Selling investors. I normally create a spread sheet with all of the properties I get notices on. Some are through 3rd party contacts. Need advice on how to proceed and get my $$$$$

Answer 1

You need a valid buyer agency agreement with your buyer(s), and you need to have it BEFORE you present any of these properties to the buyer(s) in question.

A valid buyer agency agreement contracts the buyer to pay you for finding him a property which he agrees to purchase. The seller is never obligated to pay the buyer agency fee for procuring a property for the buyer. You may attempt to negotiate the purchase price downward for the buyer to help him cover your fees, but the buyer is the one who remains liable to pay you the commission.