Go to: http://www.refat.org/ for more info. Persons who believe they may be victims of real estate fraud are encouraged to fill out and return a Real Estate Fraud Complaint Form for review. I hope this helps!
Another time where your agent asks you to pay a commission is if they represent you in a property being sold by the owner, where they owner has no agent. In this case, your agent is actually only charging what they would have received if they represented a property not being sold by an owner without an agent. The work for your agent is actually much more in this case because the seller typically has to be educated on the processs and have their hand held by your agent, even though your agent isn't being compensated for that part of the transaction, the seller representation.
However, in my opinion, merely stating this is a standard of practice, would be unacceptable to me. Sometimes agents don't feel that it makes sense to educate the client on the process and this lack of desire to communicate, could stem from agents underestimating the clients ability to understand or assuming that the client will be unwilling to proceed as the agent wants to, leads to all the typical problems with lack of communication in any relationship, lack of trust, frustration, etc.
Go back to your agent and ask them to explain further. Also, on your estimated buyer costs, is a commission shown there as an expense to you? Is there an offset shown? Commission can be a considerable add on cost one you will want to understand.
If your agent put that in the offer without telling you, I think there should be some discussion about waiving the fee. Most of the time in CA the seller pays the commission. I would have to know more about this.
In order to give you a true answer to your issue Iâ€™d have to see your paperwork; however, Iâ€™m not a party to your deal or an attorney. I would start by confronting the agent along with the agentâ€™s broker. If the issue is still there and without resolution, Iâ€™d seek a real estate or contract attorneyâ€™s advice.
Good luck. I hope all works out.
When I asked about it my agent insisted that it was standard practice in California and did not in any way leave it open to neogiation even though I voiced surprise and displeasure at having to pay it.
I posted this as an answer but I could not find a way to add on to my original question.
You received some very excellent answers from, Bonnie, Chris, Tim, and Annette.
It would be impossible to give you a clear answer because documents vary, Buyers Broker Agreement, Purchase Contract, Short Sale Addendum, New Home Construction, HUD closing statement. Since we are not a party to what you signed and any other document tied to that document your best resource is to have your agent and/or their Broker explain it to you.
As other's have said the standard of practice is negotiable and in California most of the commissions are paid by the Seller to the Seller's Broker, who in turns shares that commission with the Buyer Broker.
Have an amazing day!
The only way that the buyer pays a commission is if the selling party communicates to the buying party that a commission will not be payed by seller, at which point, buyer's agent and buyer have to come to an agreement that buyer will pay their agent's commission. This has to be disclosed prior to escrow.
Truth Realty & Investments
It is critically important to identify EXACTLY what document contains that statement and where within that document it exists.
Without this very SPECIFIC data the answer will be Yes and No.
The California real estate professionals participating on Trulia will recognize these documents and will be able to respond with authority and extrapolate for you the intent.
Best of success to you,