need advice for buyer's agent exclusive contract

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hillwinner_IHB

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<p>HI:</p>

<p> I need some advices for the buyer's agent exclusive contract. I am a first-time buyer.</p>

<p> Last month our agent asked us to sign the contract with him after he showed me several houses. He said it is reasonable to protect himself. So we signed it which in effect for six months. Before signing it, we ask him what happed if sellers don't pay the commision? He said it is impossible. </p>

<p>Last week we saw a new house by ourselves (he have never showed us house since we signed contract, we have to search by ourselves.) and try to buy it and the builder said they have no co-op with agent, they sell to cilents directly. We asked our agent, he said we cannot buy it unless we pay him comission.</p>

<p>I don't feel the contract is fair for us and ridiculous. I signed contract and I cannot buy house!? </p>

<p>Now the situation is that the agent refuse to pick up our phones because he know the day after tommorrow is the deadline for us to sign the purchase contract with builder.</p>

<p>Anyone here can give us some suggestions? Is there anyway to cancel the contract? </p>

<p>Thanks a lot. </p>

<p> </p>

<p> </p>
 
I am no attorney and perhaps others on the board will be more helpful, but I think a good place to start is to look over your contract more carefully at its wording and provide us with the text of what the contract states are the agent's obligations, what are your obligations, and what the penalties are for violation of contract. If you cannot understand it or the contract is just too long and/or complicated, you would have to seek the advice of an attorney.
 
<p>I'm calling bulls*** on your story, for a few reasons. First, every builder out there is currently offering co-ops to brokers. Second, in this market, a broker with a serious buyer, as you purport to be, would be bending over backwards to show you houses and negotiate with sellers/builders. Third, no builder imposes a "deadline" in which to purchase a new home. What happens if the deadline passes? Does the builder sell to someone else? If that's the case, the builder would have sold it already. And if you do have an agreement with the builder to hold the house for you (an option), then you're probably already on the hook to pay your broker under the exclusivity provision of your contract.</p>
 
<p>Why do you have to buy a new home (from a builder) though an agent?</p>

<p>Those agent representation contracts were for them representing you for resale purchases only, no?</p>

<p>Anyway, in either case ... purchasing resale or new-construction, you wouldn't have to pay the commission.</p>

<p>The seller or the builder would be paying the commission.</p>
 
<p>HI, </p>

<p>Thanks for reply. And I did some research on the buyer's agency contracts.</p>

<p>There are three standard contracts in California: Form BR-11(non-exclusoive and revocable), NAP-11(commit to pay broker and irrevocable), and Form AAP-11(the most binding contract, obligation to pay single broker and irrevocable )</p>

<p>For Form AAP-11, it says it is the buyer's obligation to pay Broker. </p>

<p>This is bloody lesson to learn that To Read the Contract Word by Word before you sign it.</p>

<p>We may have to give up this house and wait for six month until the contract expire. We are sad for this. </p>

<p>If someone here can refer me a real estate attorney in Orange county, I will get some professional advice.</p>

<p> </p>

<p>Thank for your guys.</p>
 
<p>I think you are SOL on the house you found on your own...even if you buy it later, agent can still claim you owe him because you found it while under contract with him (don't <em>think</em> he won't be checking to see if this happens).</p>

<p>And I have to agree with Marty....seems that all builders are co-op with brokers nowadays. </p>
 
<p>First: Why would you sign an exclusivity contract with an agent? These people are dying for work, so when you get offered/pressured to sign a contract, you say "no thanks." It ain't like he's got something else to do right now!</p>

<p>Second: Deadline to sign up to buy a house from the builder? And if you don't sign it, what? He'll sell it to somone else? LOL!!!</p>

<p>Wait out the 6 months, don't sign any more contracts, and then buy the house from the builder for 50K less. That way everyone is happy, except the builder and agent, but who cares about them!</p>
 
It's hard to believe but there are plenty of builders in Irvine that doesn't pay broker co-op. We were looking at new homes, and my sister is a real estate agent. We had her call all the builders and developments that we were interested in to see what they offered. Stone Manor, Campanile, Los Arbolos, and Lantana didn't pay broker co-op. This was about 3 months ago, maybe a few of them changed their policy now.





Builders don't have a deadline to sign a contract but they usually give you a few days to a week to put down a down payment and sign the contract. In this period, the house/lot is reserve. If you don't sign the contract within this time frame, the house/lot that you want will go back into the market. There are plenty of other house/lot from a builder, but usually the better lot have higher interest. Recently, Madison in Columbus Grove had a phase release. To my surprise, two of the lots have 3 buyers on the waiting list for it. They were able to sell 4 houses that day. That was a big surprise.





Back to hillwinner's problem, since the builder doesn't pay a commission, you don't owe the buyer's agent anything. Buyer's agent work on the commission they get from the seller. In addition, you found the house yourself. BTW, in this market, definitely negotiate with the builder to get them to pay for your options, closing cost, etc. It's a buyers market, take advantage of it. BTW, do you mind sharing with us which development you're interested in buying ?
 
If you look at the tiny fine print in the ad, the builders won't pay co-op unless your first visit to the site is with your agent.





HW - Try Warren Worth in Irvine at (949) 660-1040
 
HW -





If the builder is desperate enough to sell the home, tell them your story and they may hold the sale until after your contract expires if you place a deposit or something. Of course, you are giving up all negotiating power by revealing problems like this. On the other hand, you could just say nothing about your situation, and start negotiating with the builder about getting freebies and perhaps if you're lucky the house will sit for 5-6 months and you'll be able to buy it for much less (or with more freebies) by the time you're done "negotiating".
 
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