Buyer’s agent agreement

[sd_resident]

One of my friends is in the market for a home and is working with Prudential CA realty broker. He signed “buyer representation agreement” which gives Prudential exclusive right to represent him. The agreement mentions broker commission of 3% and additional fee of $600 which is apparently required by Prudential. Is this additional fee normal and does the seller pay for it? Can my friend choose to go with another broker after signing this agreement if for some reason he is not happy with the broker?

[SD Realtor]

Well I cannot comment unless you actually post the agreement.

I would advise your friend to read the representation agreement very very carefully. Any agreement can be cancelled if both parties agree to it. Your friend may want to talk to the broker about this agreement.

It may be a good idea for your friend to talk to other agents to see what kind of an agreement they use so that your friend can get samples of what is normal and what is not normal.

What I can say is that if I were a person buying a home, and some agent wanted me to sign an agreement that was paraphrased like you stated above I would laugh and walk away.

[XBoxBoy]

For what it’s worth. I wouldn’t sign a buyer’s agent agreement when buying a house. (I’ve bought twice and both times worked with an agent without signing an agreement) From my experience they are not normally demanded of buyer’s, and I don’t see a reason to make a legal commitment when I don’t have to.

As to the fees, I can only say I would definitely run away and find another agent when I saw those.

[urbanrealtor]

[quote=XBoxBoy]For what it’s worth. I wouldn’t sign a buyer’s agent agreement when buying a house. (I’ve bought twice and both times worked with an agent without signing an agreement) From my experience they are not normally demanded of buyer’s, and I don’t see a reason to make a legal commitment when I don’t have to.

As to the fees, I can only say I would definitely run away and find another agent when I saw those.[/quote]
Agree with this post.

[Author]

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