Home Buying in 78260>Question Details

Jackspud, Home Buyer in 78260

Is a Buyer Representation agreement required in Texas?

Asked by Jackspud, 78260 Sun Feb 12, 2012

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I think it is far more innocent than that. I don't think it is a trust issue at all. And, though it is really not REQUIRED in Texas, most brokerages require a signed on in the file.

In fact, in most brokerage firms, they have a little deal they make with you... "Turn in a full file with all the broker required dislosures, and we will turn your check in to you"

I think that you are probably dealing with a good agent that is more of "Hand-Shake" kind of agent, and probably only asked for the disclosure to complete their real estate file for their office.

Probably nothing at all to worry about, or even take too much offense to.. Really, at the stage where you are at in the transaction, the document is really not very important anyway.. The other agent has already agreed to pay your agent, and you are set to close...

I think it's just as simple as that. We've all been there! ;)

Jason
Web Reference: http://www.SAHomeExpert.com
1 vote Thank Flag Link Mon Feb 13, 2012
Up to the agent and broker policy ... HOWEVER I refuse to work with ANYONE unless it is signed

Lynn911 Dallas Realtor & Consultant, Credit Repair Advisor
972-699-9111
http://www.lynn911.com
1 vote Thank Flag Link Sun Feb 12, 2012
Hi, Jack,

It is not REQUIRED, but the law presumes that the agent represents the Seller unless you have a written agreement with the agent to represent your interests. Here's why you might want to do that: http://www.trulia.com/blog/ellen_doc_stephens_realtors/2010/…

When an agent represents you, he or she must place your interests first, even before his or her own. Your agent's job is not to SELL you a house, but to help you find exactly what you want,and then, negotiate the best possible price and terms, and manage all the nettlesome details that lead to a smooth closing.

Happily for you, the Seller's agent pays your agent for bringing a Buyer. Some agents think that they can represent both the Buyer and Seller - that's impossible. You have to stand with either the Earps or the Clantons at the OK Corral - you can't take both sides in a gun fight or a negotiation. The same agent can manage the transaction with both Buyer and Seller, but if they have a listing agreement with the seller, the Seller is the one who is represented and the Buyer is merely a Customer, not a client, and has no fiduciary protection.

So, if you are Buying a home, you might consider the benefits of having a pro on your side of this major financial transaction. It doesn't cost you anything extra and might save you thousands and prevent costly problems. We do this every day.

Good luck,

Doc Stephens, REALTOR
Keller Williams Realty
1 vote Thank Flag Link Sun Feb 12, 2012
Doc

I think I was "scamed" by a KW agent - who for 6 months was my "seller" and then found a buyer - and asked me to sell to his buyer - at $150k below market price. He told me this would be my last chance to sell because the market was actually falling - not gaining for sellers.

The agent is a Dallas based guy who - since the closing has faded into the background.

Bud Jordan
bud@budjordan.net
Flag Sun Aug 26, 2012
What is the average length of the buyer representation agreement in San Antonio?
0 votes Thank Flag Link Wed Apr 1, 2015
F.Y.I escrow closed 2/15/2012 and everything went very smooth. Very satisfied with or Realtor. Our Realtor was very professional and kept us informed with every step. Very happy with our purchase. Next time will clear up the BRA before an offer is made. Next will be 1031s from California to Texas.
0 votes Thank Flag Link Fri Mar 2, 2012
Jackspud,

Congratulations on your soon-to-be new home. As far as the BRA goes, it is not a requirement in the state of Texas. Your agent should be compensated by the selling broker. If for some reason the selling broker is not providing compensation (rare, but it can happen), then your agent waited way to long to bring this to your attention. The "Agreement between brokers" is a part of the real estate contract as it was submitted, and if there was an issue with that portion of the contract, that would have been indicated immediately and your agent would have known before the contract was ever finalized.

Once again, congratulations on your new home and welcome to Texas.
0 votes Thank Flag Link Mon Feb 13, 2012
Hi Jack,

Buyer's Rep Agreement isn't required but it is recommended. My guess is that your agent's brokerage requires BRA but I find it odd that your agent waited two days before you close to have you sign one. Maybe with it being a foreclosure your agent wasn't going to get the full 3% but that still isn't right. There are some foreclosures and short sales where the buyer's commission is less than 3% but if that was the case your agent should of made that clear from the beginning.

For me personally I don't require for a BRA to be sign, nor do I require the buyer to pay me the difference if I don't get the full 3%.

Good Luck!

Tamika A. Goree
Direct: 972.697.1178
Email: tamika.goree@live.com
0 votes Thank Flag Link Mon Feb 13, 2012
Not required.
Good idea for both parties in my opinion.
I probably would not want to sign one two days before closing though.
Probably not a big deal that you crossed out the line you did.
Depends on the agent and brokerage I guess, but it would be pretty rare they would look to the buyer for commission, even though the BRA states this. There are situations, perhaps if you are buying a FSBO for example.
Giving it to you two days before closing is a little weird in my opinion.

Good luck....hope it all goes smooth from here.
Web Reference: http://www.teamlynn.com
0 votes Thank Flag Link Sun Feb 12, 2012
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
Contact
The realtor that was helping me: found the house, prepared the offer, prepared the counter offer to the seller's counter offer, opened the escrow, set-up and attended the inspection appointment. I fully expect that my realtor will be paid the commission through escrow. I am not trying to take advantage of the realtor. I'm very happy with the service provided. But I was surprised to be presented with the BRA after I had fully funded escrow with the total sales price and expecting to close escrow in 2 days. I lined out the portion of the BRA that indicated I would be responsible for a 3% sales commission if the seller's broker wouldn't pay it and I signed the corrected BRA. I honestly don't think the BRA was necessary. I too don't want to deal with someone that doesn't trust me.
0 votes Thank Flag Link Sun Feb 12, 2012
As indicated below, there is no legal requirement to have a buyer's rep. agreement executed in order to purchase real property. Looks like the agent is too little and too late. And the chance the seller will now pay a buyer agent fee after the fact is slim and none. The agent should have made the decision to get the form signed well before now so you have no legal obligation to execute a buyer rep. document at this point.
Web Reference: http://www.phgbrokers.com
0 votes Thank Flag Link Sun Feb 12, 2012
Didn't the realtor help you find the property? you can always cross the section that says you have to pay him out of pocket. The agreement is to protect you as much as it is a way to compensate your realtor.

If he helped you find the property, shouldn't he get the chance to finish the deal and get compensated for it.
0 votes Thank Flag Link Sun Feb 12, 2012
It is not required, but I would never work for nobody who does not trust me as his/her Realtor. Besides it is written to protect the Buyer's interest.
Good Luck
Sincerely,
Jose Luis Novelo
0 votes Thank Flag Link Sun Feb 12, 2012
Lynn, Doc & Ellen,

Thank you for your replies.

I'm glad to find out that the "Buyer Representation Agreement" is not required in Texas. I've purchased 6 properties in California over the past 35 years always by contacting the selling realtor direct. I've never had a buyer agent represent me. I've negotiated my own deals with what I believe pretty good success. No buyer agent trying to talk me into the deal. I'm currently scheduled to close escrow on a home in Texas in a few days. I used a realtor that was referred to me to help me find the home in Texas via the internet. Cash deal - No loans. I've funded escrow. Now all of a sudden the realtor wants me to sigh a "Buyer Representation Agreement" that would require me to pay 3% commission to my realtor if my realtor doesn't get the commission from the seller's broker. The sales contract is already signed and all conditions have been met. My feeling is that it's a bit late in the game to bring up the BRA.

Lynn, suffice to say I wouldn't be able to work with you..........reminds me of a realtor I met in California about 6 years ago that told me she wouldn't accept any listing that hadn't been freshly painted and completely repipped with copper piping.........oh, .how times have changed.
0 votes Thank Flag Link Sun Feb 12, 2012
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