Can a buyer claim a non-rep fee be paid to them after agent shows property to them 3 times?

Carin Bowman
Home Buyer
Madeira Beach, FL

The buyer provided a contract from an attorney requesting the commission as a non rep be paid to the buyers at closing.

Answers (10)
Jamie Schaefer,...
Agent
Saint Petersburg, FL

I do not think anyone other than a licensee can receive compensation for a real estate sale if it is in this form of compensation (including the buyer). Also you were procuring cause. I think you have a strong strong case and would speak to a Real Estate litigation attorney right away. I would be happy to refer you to someone if you like.

Sat May 17 2008, 00:41
J Lo
Home Buyer
California Glory, Br...

Hi Carin:
What jurisdiction does this "contract from an attorney" have in your transaction? NADA! Your contract for purchase holds all the key points you and the buyer agreed to = that is if you are the seller since your profile says you are a Home Buyer...

I; like my colleagues before me am confused by your posting... but if I were presented with this dilemna, I would pretty much smile and tell the person holding the contract to take it back to the attorney that wrote it and ask the lawyer for my $$$ back..

Fri Aug 3 2007, 20:27
Bridgette Kostek...
Agent
Florida

Carin,
Are you a principal in this transaction? In what capacity (buyer, seller, attorney, REALTOR)? To advise a general course of action, we need to know your perspective on the issue. The way your question was posed, it sounds as if the buyer is trying to cut an agent out of their earned commission. Please re-post with more details. In any case, you may need to consult a real estate attorney in this matter. Best of luck!

Fri Aug 3 2007, 16:36
London Realty C...
Agent
Florida

The question mentions a "contract" from an attorney and my guess is that Carin is referring to a Notice as opposed to a contract. In Florida, we notice both buyers and sellers as to our agency relationship with them. However, that agency relationship does not affect commissions due at closing to the selling broker.
My guess is that the buyer is trying to claim the commission due to the selling broker as the agency realatonship disclosed in Non-Representation. The buyer has no chance of getting that commission.

Fri Aug 3 2007, 12:28
Keith Sorem
Agent
Glendale, CA

Carin
Are you saying that the buyers, at the close of escrow, and although represented by an agent (meaning there was a signed purchase contract containing both the buyer's and agent's signatures) wanted the agent's portion of the commission.?

Or are you saying that the buyers are asking for a certain amount of money as non-recurring closing costs to be rebated by the seller?

The other posts are correct about non-licensed parties are usually not entitled to commission. I note that you are in Florida, in California a party to the trasaction (this is not legal advice!) can receive money (part of the proceeds. For example, if a home needs new carpet, it is common to have the seller rebate an amount for new carpet so the buyers can select their own color/style, etc.

Please carlify your question.
Keith

Fri Aug 3 2007, 12:02
Bruce Lynn
Agent
Texas

I'm not sure I understand the question completely, but it sounds like you want to represent yourself in the transaction and want the seller's agent to discount the home by 3% due to this circumstance. If that is the case the listing agreeement is typically between the seller and the agent. The agent has no obligation to reduce the charge to the seller. Lots of buyers seem uninformed about this. Are there cases where it's happened YES, but is it commonplace, I would think not. I have had buyers attempt this and normally I advise them representation is FREE for them and they should use it. That it is already built into the price. I think your idea is an interesting one, but doesn't often work. Get a buyers rep to help you. They'll normally help you in many more ways than just getting a discount. They might can save you money in many other ways.

Web Reference: http://www.teamlynn.com
Fri Aug 3 2007, 10:33
Paul Slaybaugh
Agent
Scottsdale, AZ

Carin,

This is a very poor way to conduct oneself. The buyer is essentially piggybacking the agent's services, only to attempt to cut him/her out when there is an opportunity for financial gain. As mentioned by the previous respondents, only a licensed Real Estate broker can be paid a commission. Even if the buyer prefers to be nonrepresented, that has no bearing on the commission arrangement between the seller and listing agent. If no other agent is involved, the listing agent is entitled to the full fee. The buyer is not entitled to any portion of it. One other critical factor that many people do not realize about how an agent earns commission: Representation and compensation are separate issues. It can be argued that the agent, even though not the author of the contract, was the procuring cause of the sale. That agent produced the interested buyer, more than likely provided information pertaining to value, and showed the buyer the property multiple times. Agents procure sales. Principals do not procure themselves. Even if you forget about the agent actually showing the buyer the property, it was the agent's marketing (even if just the sign in the ground) that brought the buyer into the picture.

Web Reference: http://rayandpaul.com
Fri Aug 3 2007, 09:14
Deborah Madey -...
Agent
Rumson, NJ

Was the attorney asking to be compensated? Or was the buyer asking for the compensation? I recently had an attorney contact me and ask me if I would co-broke with him on a transaction. He said he could not take attny fees and commission both for representing his buyers, but only one or the other and wanted the commission. His buyers had not seen the property. I am the Broker. BTW, it became a non-issue since he never wrote the offer for his clients. This was in NJ, and happened in June 2007.

Fri Aug 3 2007, 08:22
Loretta J. Buck...
Broker
Palm Harbor, FL

The buyer's contract is with the attorney, and in Florida as well as California payment of services can only be done Broker-to-Broker. A broker cannot even compensate directly to a licensed agent--it must go through the agent's broker. I cannot fathom a buyer claiming any sort of fee from anyone, since they are the purchasing party to the transaction, not anyone providing service...fees are for services rendered. Who is supposed to be claiming this fee, again?

Fri Aug 3 2007, 08:11
Irina Netchaev,...
Broker
Pasadena, CA
FIRST ANSWER

Hi Carin, I am not sure about Treasure Island, but in Pasadena, CA - commission can only be paid to a licensed real estate broker. The seller can offer a discount or credit to the buyer instead of a commission.

What kind of buyer would take advantage of an agent like that?

Very sad...

Irina

Fri Aug 3 2007, 07:47

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