First, the seller is responsible for paying the commission fee (compensation listed in the MRIS) of your agent. You should ask your agent (buyer's agent) is there any reason the seller is not paying his fee. If the agent confirms that the seller is not paying the fee, then the agent is allowed to ask the buyer for payment for his or her services. This however, should be explained, so that you have an understanding of what is going on. The fee is still negotiable, even if the agent has a certain fee that he or she normally charges.
Second, the flat fee could be an administrative or office fee that is standard among real estate offices. This could also be a retainer or early termination fee. Again, inquire what the flat rate fee is. That's very vague as it doesn't say what the actual fee is.
If you still have questions, speak with the broker about these issues and share your concerns. I'm sure they will work with you because they don't want to lose your business.
The agent should have covered these items with you. If there is an issue with the agent then you should speak with their broker or office manager.
1. You agreed that buy signing a contract to buy they have fulfilled their duties to get a commission - WITH several exceptions, financing, home inspections, etc. I changed my mind is not an exception to the contract.
2. If you, and not a valid exception, is the reason the contract is broken the broker stills expects to receive their compensation for providing you their services.
EXIT Elite Realty
What it sounds like it means is that you'll pay the "MRIS listed compensation" plus a fee (an administrative charge) of $495.
However, typically the commission ("MRIS listed compensation") is paid by the seller. What often happens is that the listing agent puts one number in. Let's say it's 6%--though of course it's negotiable. Sometimes the lender comes back and only permits/agrees to a lesser commission--say 4%. If there are two agents (listing and buyer's) involved and the MRIS agreement says they'll split the commission, then each would only end up with half of 4% (2%), rather than the expected half of 6% (3%). It MAY be that you've agreed to make up any difference in that commission shortfall.
Or, as you think, it may have obligated you to pay the entire commission.
That's something you must ask your agent.
The language you presented--paragraphs 1 and 2--is pretty standard.. It says (to oversimplify--not a good thing when talking about contracts) that a commission is owed as soon as there's a written contract, but that the commission can be paid at settlement.
Check with your agent for a more complete and accurate explanation of what you've signed and agreed to.
most brokers charge a flat fee for 195 - 495 payable to the broker listing the property
for short sales the MRIS offering is paid by the bank - even though you sign a listing agreement saying you'll be paying it