Home Buying in 78728>Question Details

Eileen, Home Buyer in 78728

From everything I have read, and been told, my Realtor (the one who is helping me find a house to buy) legally works for the seller.

Asked by Eileen, 78728 Thu May 20, 2010

From everything I have read, and been told, my Realtor (the one who is helping me find a house to buy) legally works for the seller, and MUST do what he can to insure the best deal for the SELLER, UNLESS I pay the commission.

However, According to the agreement I signed for the Realtor, he represents me.
Specifically it says "negotiate in your favor to help you secure the property at the best possible price and terms".

However, the seller is paying the commission.

So does this Realtor really represent me, or is he obligated (by Texas Law) to really work on behalf of the best deal for the seller?

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In Texas, a real estate agent, with a signed Buyer's Representation Agreement, can collect a sales commission from the Seller and have the Fiduciary Duty to represent the best interest of the Buyer. However, for example, if you signed a Buyer's Representation Agreement with your agent for 4% of the purchase price, and the Seller's Agent is offering to pay the Buyer's agent 3%, then, based on the agreement, you would owe your Buyer's Agent 1% (or the difference). Also, many agents, when working for a buyer, will specifically write into their Buyer's Rep Agreement that they will first seek the commission from the Broker representing the Seller and then, from the buyer. Hope this helps:) From the above, it sounds like you signed a buyer's representative agreement with your Realtor, and therefore, even though your Realtor is being paid by the Seller, by virtue of the agreement with you, the Realtor represents you.
2 votes Thank Flag Link Thu May 20, 2010
Hi Eileen,
Here is a link about information About Brokerage Services in TX.
http://www.trec.state.tx.us/pdf/contracts/op-k.pdf

If you have a buyer representation agreement your Realtor represents you. Your Realtor is responsible to explain this information to you.
Hope it helps.

Sincerely,
Pelin
http://www.dallashomelist.com
1 vote Thank Flag Link Thu May 20, 2010
Eileen,
If you signed a Buyer Representative Agreement with a Realtor, that Realtor represents your best interests, not the Seller's. When you have a signed agrement with a Realtor, they are ethically bound to represent you and maintain your confidentiality. They have no direct interaction with the Seller at all-only the Listing agent.
What the standard agreement states (having not read specifically what you signed), in paragraph 11B is that the Broker -represented by your Realtor- will go to the Seller first for the commission. This usually happens. In the rare case where the Seller will not pay the commission, it then will fall upon you to pay the commission. You would know this in advance of going under contract so it would be your decision on whether you wanted to go through with the transaction, or not.
Regardless of who pays the commission, if you have a written agreement, the Realtor represents YOU and your interests.

Hope this helps,
Marcia
Web Reference: http://www.MarciaLevine.com
1 vote Thank Flag Link Thu May 20, 2010
Your Realtor is obligated, by law, to represent YOU and your best interests. If the Realtor is your agent, a buyer's agent, then he or she is obligated to you. Commission is paid by the seller, and it's true that the more money you spend on a home the higher the commission will be, but getting you the best price is what your Realtor is tasked with.

A Buyer's agent is obligated to secure the best price for their client, and getting the price as low as possible only lowers the commission by a small percentage. When it comes down to it, you are the one buying the home. Your agent does his or her best to facilitate the process.

The "Residential Buyer/Tenant Representation Agreement" and the "Information about Brokerage Services" forms should detail this information for you.
1 vote Thank Flag Link Thu May 20, 2010
The short answer is he works for you. The listing agent works for the seller. Your realtor's commission will come out of the total commission paid by the seller to his broker; but that does not affect your realtor's fiduciary relationship with you. Hope this helps.


Phillip Baird
1 vote Thank Flag Link Thu May 20, 2010
He represents you the buyer. It used to be that everyone worked on behalf of the seller. However, we now have Buyers Representatives and legally we work for the buyer and their best interests. Technically, the seller is not paying you. He is paying the brokerage that lists the property and the listing broker disburses the money to your agent as per the agreement signed with their seller. Hope that helps!!


Jackie
Tru Value Realty
1 vote Thank Flag Link Thu May 20, 2010
Is your agent also the Listing agent, is his name on the for sale sign? If its his listing he represents the seller. While Dual Agency (one Realtor representing both the buyer and seller) is legal in Texas, I personally won't do it. The seller pays both Realtor's commissions, so there is no reason not to have someone on your side of this deal. My advice would be to have your own Realtor help you navigate this purchase. I wish you luck and I am available if you have further questions.
Best Regards,
Betina

Betina Foreman Realtor
Team Price/ Prospect Real Estate Solutions
0 votes Thank Flag Link Fri May 21, 2010
It might help if you read the TEXAS OCCUPATIONS CODE TITLE 7. PRACTICES AND PROFESSIONS RELATED TO REAL PROPERTY AND HOUSING SUBTITLE A. PROFESSIONS RELATED TO REAL ESTATE
CHAPTER 1101. REAL ESTATE BROKERS AND SALESPERSONS SUBCHAPTER L. PRACTICE BY LICENSE HOLDER Sec. 1101.558. REPRESENTATION DISCLOSURE which explains the types of representation.

Here's the link: http://www.statutes.legis.state.tx.us/Docs/OC/htm/OC.1101.htm

Also, you might have your attorney explain to you the agreement you signed.
0 votes Thank Flag Link Thu May 20, 2010
AMAZING HOW RUMORS START....your buyers agent rerpresents you IF there were not buyers agent everyone would be submtting contracts to the listing agent.

Realtors are ALWAYS PAID at closing via the property owner YES when you sell your home you tooooo will pay all Realtors fees (listing / buyers agent)

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
http://www.lynn911.com
0 votes Thank Flag Link Thu May 20, 2010
Eileen,
By default in Texas we (Realtors) are subagents of the seller UNTIL you "designate" us as your "buyers agent." This is simply a form you and your agent sign "declaring" this relationship. Upon signing this agreement we (Realtors) are released from this obligation to the seller and now work in your best interest in EVERY WAY. As for the commission, the seller and the "listing agent" agree to one commission fee. In general, there is only one commission and it comes from the seller under our standard or general guidelines. We (Realtors) have an agreement that this one commission will be split among ourselves.

Hope this helps.
Bill
0 votes Thank Flag Link Thu May 20, 2010
Marcia said it best...

If you signed a Buyer Representative Agreement with a Realtor, that Realtor represents your best interests, not the Seller's. When you have a signed agrement with a Realtor, they are ethically bound to represent you and maintain your confidentiality. They have no direct interaction with the Seller at all-only the Listing agent.
0 votes Thank Flag Link Thu May 20, 2010
When it comes to a question about requirements of law you are best to ask an attorney. But by have a signed agreement with the words "negotiate in your favor" in it, it probably creates an obligation on both of you tha could be inforcable in court. But again consult a real estate attorney.

As for the person telling you that the agent works for the Seller unless you pay the commission they do not know what they are talking about in Texas. And if they are an agent trying to get your business .. they may very well have violated the real estate licensing laws in Texas.

I wish you the best of luck in purchasing a home .. Bruce
0 votes Thank Flag Link Thu May 20, 2010
Wow, you people work fast! Or I take too long....
No one else had answered when I began writing.
Sorry, Texas agents. I defer to you.
0 votes Thank Flag Link Thu May 20, 2010
I'm not from Texas but in most cases, you usually have the listing agent, the buyer's agent, or in my state it is still legal to have dual agency.
It use to be that all agents were basically working for the seller.
Buyers agency came around when it was realized that there was a real need for buyer representation.
If you approach an agent to represent you as a buyer and, as you stated sign an agreement as such, that agent has a fiduciary responsibility to represent your best interests. They do NOT work for the seller, they work for you. Your buyers agent's commission is paid with the proceeds from the completed sale of the house(in most cases).
If you call a listing agent directly, about a particular listing they have, and you enter into an agency relationship with them, in NJ they become dual agents. This means they need to maintain neutrality and are not allowed to represent one party or another. I do not know how that situation is handled in Texas.
I hope this helps.
0 votes Thank Flag Link Thu May 20, 2010
If you sign a Buyer's Representation Agreement they will work for you only, even if the seller pays the comission.
This is a neat situation for buyer's in Texas...the standard TREC contract favors the buyer in many ways and you basically get free representation to work against a builder or seller.
Remember the good times now, as it changes when you are the seller.
Have your realtor explain this to you and their obligations to you.

This holds as long as you are not in intermediary and then different rules apply. Intermediary is a situation where the broker represents both parties in Texas. Both buyer and seller. The rules of intermediary are outlined on the Information About Brokerage Services sheet you also likely signed.
0 votes Thank Flag Link Thu May 20, 2010
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
Contact
Whoops sorry! I meant to say "technically the seller is not paying your AGENT". (However, it would be wonderful if he did pay you!!! :) )


Jackie
0 votes Thank Flag Link Thu May 20, 2010
If you are working with a Realtor that is showing you homes that they also list then the Realtor is working for both the seller and buyer. This is where the conflict of interest will come in.

If you are working with a Realtor that is showing you homes that they DO NOT list, then that Realtor will only be working for you. In both cases their commission will come from the sell of the home. Your contract with the Realtor will outline how much commission they will receive.

To avoidd conflicts of interest it may be your best bet to work with an Exclusive Buyers Agent, such as myself. Exclusivee Buyers Agents only work for the buyer. They do not represent sellers. Their commission is paid by the seller or the builder in the case of a new home. Basically their services are of no charge to you. Take a look at my website for some of the benefits of this type of representation.
0 votes Thank Flag Link Thu May 20, 2010
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