Because what happens if you work tirelessly for a buyer and find a home that the seller/listing agent refuse to pay the commission (for whatever reason....discounted, FISBO, etc.). Then the agent still gets paid. It is an indirect way of saying that the buyer is ultimately responsible for the buyer's agents fee. It's a protection for the buyer agent.
I love the way you asked: customs and practices. It has been the custom in Maryland that the seller pays for buyer agent fees-although there can be instances where the buyer pays-so be sure to read and discuss any agreements you sign.
Maryland law requires a buyer to be informed about the types of representation available to potential buyers or renters and the services each provides. However prior to entering a contract for sale or rent an agent must identify who are representing in writing to a consumer.
Hope this helps!
This agent also stated it was State law that a buyer representation agreement be signed, but it appears that statement is factually incorrect. While it may be a company policy, I haven't found any evidence that state law requires a buyer rep. agreement be signed prior an offer being submitted.
Thanks again Laura.
Once you have a level of comfort with an agent they will ask you to sign a buyer agency agreement. In my opinion this isn't something that should be forced on you until you have decided who you want to work with.
However, it is required that you sign an agency acknowledgement form to let you know how our state handles agency, buyer representation, and dual agency.
Commissions are always negotiable but it is customary in Maryland that the Seller pay all commission for both their agent and a buyer's agent. If anyone is asking you to sign a buyer representation form that makes you responsible for the commission I recommend you look elsewhere. If you find a For Sale by Owner home or purchase with another agent that document will make you responsible for paying commission.
2. Can anyone please provide the statutory language that requires a buyer representation form be included when an offer is presented?
Yes a buyer representation agreement is required for the buyers agent to represent you .
You should also be asked to sign an agency disclosure form at first face to face meeting with an agent that explains whom they represent. This form is required by MD law and simply explains agency to you , it is not a contract.
The form that's required to be signed is called "Understanding Whom Real Estate Agents Represent" and is not a contract, or a commitment to work with an agent. It is a disclosure only required by law.
You can expect most Brokers here in Maryland to charge a fixed fee to a buyer ranging anywhere from about $250 to $450. Not all, but pretty darn most do.
Long and Foster Real Estate, Inc.
RE/MAX Realty Group