Agent2Agent in 91106>Question Details

Leo S,  in Pasadena, CA

I have a salespersons' license and would like to make an offer on property for investment or pri.resident.

Asked by Leo S, Pasadena, CA Fri Jan 23, 2009

Is it true that bank-owned properties will try to not pay out the procuring cause broker/salesperson commission? Or maybe they don't like it in the first place and I should just find someone else in my brokerage to represent me because of the conflict of interest?

I understand that I can't just use the RPA-CA Residential Purchase Agreement form if I am the buyer and sales agent.

Is it easiest to just use someone else at my brokerage to make the offer and have him agree to give me the commission (~4% to the procuring buyer's agent). I guess I need to trust him or draft up some agreement that says he will return that to me.

Any advice is appreciated.

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Answers

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Many of the Bank Owned listings will mention that if the buyer is an agent representing themselves the sellers will not pay commission to that agent. I personally don't think that that is appropriate as often times the selling agent ends up doing more work on the transaction then the listing agent does. At least that has been my experience thus far with REO transactions.

You can use the RPA-CA for a transaction such as this but you will need to disclose that you are representing yourself.

If you decide to have someone in your office represent you, which is what some brokerages require when buying or selling for yourself, I would write up a referral agreement between you and the agent that you have represent you. I would offer that agent some sort of compensation for doing it as it is their name associated with the transaction as the sellers agent.

If the listing doesn't specifically state that the seller will not pay commission to selling agent if they represent themselves I would ask the listing agent specifically how their seller would handle such a situation prior to writing any offer on the property.

Good luck.
0 votes Thank Flag Link Fri Jan 23, 2009
The bank will usually not pay out the commission if the agent is the buyer.
0 votes Thank Flag Link Fri Jan 23, 2009
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