Question Details

Carolyn,  in Fulton, MO

What happens when a buyer signs two buyer's agency agreements?

Asked by Carolyn, Fulton, MO Wed Oct 17, 2007

I have a buyer's agency with a client from out of state. I just got a call from another agent in another town here in Missouri and he has signed one with her, too. She wants to do a referral and take 25% of my commission, as I currently have submitted a contract on a home for him. What's the rule?

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In Seattle, since you are the one with the contract in escrow- you win. Tell the other agent they did not refer your client to you, so you owe them nothing. What's up with the client?
0 votes Thank Flag Link Wed Oct 17, 2007
You may have to pay both. Try to work it out as 25% seems like a pretty good deal right now.
0 votes Thank Flag Link Wed Oct 17, 2007
The buyer could end up owing a commission to the other agent. Your buyer agency agreement, if it is valid, does not mean 'share' because the buyer entered into two agreements. You decisions and commitments to the buyer were predicated upon their commitment to you. Absent a buyer agency agreement, you might not have taken the same steps. You are entitled to your commission.

The broker has to make a claim for commission, the agent cannot.
0 votes Thank Flag Link Wed Oct 17, 2007
Deborah Madey, Real Estate Pro in Brick, NJ
Only one agreement rules. It's the same as having two exclusives on one listings unless the seller wants to pay double commissions, but instead of the property being the subject it's the buyer's ability to purchase. One commission or two commissions, tomatoes tomato
0 votes Thank Flag Link Wed Oct 17, 2007
Hello Carolyn,

Where I practice in Las Vegas, the Buyer Brokerage Agreement is between the Buyer and the Brokerage, I do not believe the other agent is entitled to any of your commission. Consult with your Broker, I would venture to say their claim has no merit. This may vary from state to state, check the verbiage of both agreements if you can. In the past when we have had disputes over Buyer Agency agreements, we had to take up the dispute with the Buyer, not any other company they were doing business with. The other company may have no idea the client signed an agreement with another company.

Good Luck,
Ken Herrera
Century 21 Infinity
0 votes Thank Flag Link Wed Oct 17, 2007
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