Home Buying in New Hampshire>Question Details

Nhbuyer, Home Buyer in New Hampshire

Agent just sent us a buyers agreement on us today 6 weeks into short sale purchase which is due to close in a few weeks .. says we have to pay 3%

Asked by Nhbuyer, New Hampshire Thu Mar 17, 2011

I signed a buyer disclosure so agent could work with us, not realizing that wasn't the buyers agreement. I found a short sale that we viewed without the agent as she wasn't available but did tell sellers agent upfront I was working with someone. Our realtor wrote up the P&S, seller accepted, it went to the bank, bank has now accepted with contingency for secondary loan which we accepted although we have NOTHING in writing saying this. Now suddenly the realtor we're working with says she forgot to have us sign a buyers agreement & sent one over which says we're responsible for 3% fees if the bank handling the short sale doesn't compensate them. On top of that they have backdated agreement to when we 1st began working with them so it looks like that's when we signed, to us that seems fraudulant. We assumed their commission came from the seller, now we don't know where we stand & are worried their actions will either lose us the house if we don't agree to sign or we're out more $$

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At this point, you have probably completed all inspections and your lender has probably completed the appraisal. It sounds as though this is moving forward, regardless of whether or not a Buyer Agency Agreement was signed.

Your agent will most likely be compensated by the bank, though most likely not at 3% that she is hoping for. According to MLS rules, the co-broke fee to be paid out must be listed in the MLS, which your agent can (should!) share with you. At this point, if there is to be a reduction in commission, it's between the listing agent and your agent. They cannot and should not be springing this on you 6 weeks into the transaction!

It's unfortunate that your agent forgot to have you sign a Buyer Agency Agreement, but she is the professional and the burden to provide paperwork in a timely manner is hers. You do not have to agree to pay a 3% fee in the event that the bank does not, nor do you have to 'make up the difference'. This should have been explained to you in detail prior to the agent writing up the Purchase and Sale.

You may want to consult with an attorney, but I would recommend that you cross out the 3% fee (1 line through) then initial and date the change .

Also, in the Additional Provisions area (just above the signature lines) you can hand write the following:
BUYER SHALL UNDER NO CIRCUMSTANCES BE RESPONSIBLE FOR ANY PORTION OF REAL ESTATE FEES AND/OR COMMISSIONS. Initial and date this as well.

Sign the form and date immediately after your signature (same line). Leave the pre-dated area alone: this shows that the agent pre-dated the form and if there is ever a question raised, you have not committed fraud.

Best of luck with your transaction. I hope that it goes well for you.
Web Reference: http://www.SNHhome.com
0 votes Thank Flag Link Sun Mar 20, 2011
Hi NHBuyer,

Call your agent's broker of record. All real estate offices have a broker responsible for overseeing the agents in the office. Talk to him/her and explain what's gone on. Buyer/Broker agreements are fairly common, but asking you to pay the difference of commission is not....but it is negotiable.

I'm glad that you feel you've gotten good advice here..but please remember this is still a general site and I'd feel a lot better if you found the agent's broker to help you. Trust me....they will.

Good luck....

Karen
0 votes Thank Flag Link Thu May 5, 2011
Hi, It seems you got some good information and did the best things to make sure that the sale will still happen. I hope you are getting the proper info from the title company to get to the closing table.
If you sre still looking for an agent/Broker to list your home for sale, I would love to talk to you. I am an independent Real Estate Broker that worked for a major real estate company the past 11 years.
I am a full time Broker and am available by cell phone and email all the time. If you have not listed your property for sale with another broker yet, please contact me to schedule an interview to see if I am the right agent to help you with your goals.
Thank You,
BobbyVan, Bobbyvan Realty 603-505-0518, bobbyvan@comcast.net
Web Reference: http://www.bobbyvan.com
0 votes Thank Flag Link Thu May 5, 2011
Just to update everyone, we ended up signing the agreement, following the advice and adding the addendum as advised below, crossing out the incorrect dates, adding for the house in question only and signing with the current dates and not backdated, initialing wherever necessary. Agent obviously wasn't happy, has pretty much cut off most communication, we're taking care of most of this closing by ourselves without any real advice or help, we've hired a title company to take care of those type of things, we had to get the second deposit check to the sellers agent by ourselves. At this point we have no real idea where or how the closing is going to take place, if she's even going to show up, we're basically fumbling around in the dark like idiots hoping it's all going to go smoothly.

On top of that we're putting our current home on the market and need to find a realtor that is not going to screw us around, that isn't going to be unavailable every week due to some emergency, that has a working scanner and printer, that can negotiate a contract without it taking almost a month, that's willing to get off their behind and do things in person rather than 99% on the telephone/email. Honestly we're so worried after this experience we don't know who to trust and as my husband was laid off our move is for financial reasons we just don't have the money to waste on someone who doesn't have the experience, knowledge, common sense, professionalism and hard work ethic that's necessary to sell a home in these difficult economic times.

The house is in a good area in Sourthern NH, but we need expertise in staging, selling, all things related to getting a house sold quickly and someone reliable that's not going to let us down.
0 votes Thank Flag Link Tue Apr 5, 2011
You should not be signing any new agreements and especially back dated agreements without speaking to an attormey to review what the implictaions of thise are. , your instincts are correct, it is not correct for the agent to back date any agreement. You can go direct to their broker or the NH real estate commission with these fears.

The agent should have had you sign teh buyer broker agrement BEFORE you signed an offer, not after.

Second is a short sale is never accepted until you receive the acceptance in writing and in most cases requires teh sellers signatures as they may be or may nit be responsible for the amount shorted by the bank, some have the buyer sign as well. Verbal is not firm and nit accepted by the courts in the state of NH. Insist on getting it in writing. As far as the buyer broker commission they should get what was offered in MLS and usally there is a form between the listing and selling broker outlining commission in a short sale.

Please see my blog with tips and advice in buying short sales.
0 votes Thank Flag Link Mon Mar 21, 2011
I am troubled by the agent asking you to BACKDATE the agreement. That is asking you to be complicite in fraud.

I wouldn't trust anyone who did that.
It's one thing to forget to ask you to sign the buyer's agreement, anyone can forget............but it's quite another thing to ask you to lie.

You might want to speak to the agent's Broker. I am sure the Broker wouldn't want his or her agent's actions to be reported.
Ask the broker to represent you moving forward, if you have lost trust or faith in your agent.

Good luck!
0 votes Thank Flag Link Thu Mar 17, 2011
I agree with the others here. The agent made a mistake. As such, the agent is pretty much stuck with the commission offered by the sellers and/or the bank.

Ron
0 votes Thank Flag Link Thu Mar 17, 2011
Yes, this sounds quirky. The agent has done alot of work for you and is concerned he/she may not get paid because it is a short sale. It might be a good idea to speak with them regarding this. It is the agent's fault they did not have you sign a buyer's agreement up front. Bad! An ethical agent would admit their mistake and suffer the consequences if this should happen. Although, if the short sale is being negotiated correctly by the Seller's agent or a company working on the behalf of the Seller or Seller's agent, this should be a mute point and commissions should be paid at closing like normal from the Seller's lender. I believe most MLS systems state how the commission will be paid to the buyer's agent in the MLS listing. Don't be afraid to talk to them about this. If you do as the other agent on this site suggested to cross it out, make sure you initial it where you crossed it out. Ask your agent to show you the full agent detailed MLS Listing to see the commissions. Every MLS system is different so it could be called something else in your state. Good luck, you have a right to stand up for yourself and there are avenues to take if you are "bullied" by contacting the state in which the property lies. Search for the Department of Real Estate online and call them for help. Hopefully, it will not lead to that.
0 votes Thank Flag Link Thu Mar 17, 2011
There are some agencies who charge buyers fees, but that should have been disclosed ahead of time. I would cross that part out and then sign. This form should have been done before you started the contracts, but it could be an oversight. Tell them you will sign the agreement, but won't agree to pay extra fees. If push comes to shove, they could mess up your purchase if you won't play their way, but hopefully they are more ethical than that. They should know by now what their commission is.
0 votes Thank Flag Link Thu Mar 17, 2011
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