# Working with a Realtor - Buyer Representation Agreement



## Wishful_Aspirations (Apr 3, 2010)

Hey Everyone,

I'm hoping someone can advise me on how the Buyer Representation Agreement works;

I started working with an Agent to assist me with my property search about a month and a half ago, and at the time I signed the BRA for 30 days only. He suggested that 60 - 90 days was the norm, however at the time i felt that it was good to start with 30 days and extend it from there if we're still actively working together.

He advised me that there's a clause in the BRA that even once our contract ends, he still has representation on properties that he's shown me for an addtional 90 days, and is entitled to the commission should a deal go through on any of those properties.

Here's my question; is it 60 days or 90 days? And is it from when our BRA term ends? I'm only asking to clarify because what it someone had signed a BRA for 90 to start off with, and they dont hit it off too well with the agent, he still gets another 90 days after the contract ends? So in that example he could basically come after you for the commission for a total of 6 months?

Secondly, if I decide to buy from a new home builder instead and not get a resale property, does the agent still have rights to getting the commission, eventhough I'd be doing all of the research and legwork at that point?
One of the sales agents at a builders office 'fore-warned' me that if i decide to cut my agent out, he could come after me directly to collect commision which he would have otherwise gotten for the builder.

Appreciate your input, thanks.


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## MoreMiles (Apr 20, 2011)

You should read what you sign... everything is negotiable.

I have seen agents asking for a guarantee of 3% commission so if the seller only offers 2% (ie, 4% two way split) then the buyer is on the hook for that extra 1%. Same thing can go with you seeking a new builder... you may be at hook on the entire 3% so it really depends on the fine prints. Did you read it first?

Realtors spend so much money on radio ads to advise people "signing BRA" ASAP... Remember! BRA protects the agent and not you! Their radio ad is laughable... I am pretty sure you all have heard it on the radio.

I usually refuse to sign until I am ready to make an offer. Even at that time, it would be only valid to that specific house. If the agent does not wish to take it, there are thousands of other agents that will.


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## grimace (Feb 20, 2010)

Hello. The BRA will have a blank space where the "holdover period" time period is written in - check yours - it can be 1, 30, 90 120, whatever. If you buy a new home during the period of the BRA the agent is entitled to commission, however if it is during the holdover, and he did not "introduced you" to the property (ie take you to see them or give you info on them and recommend them), then no commission is payable. It is only for properties that he showed or introduced to you. READ THE CONTRACT - it is spelled out in black and white.


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## Homerhomer (Oct 18, 2010)

First off as others mentioned read the contract, secondly once your contract is over represent yourself and you may get the property cheaper. For sellers in many cases it's the bottom line that counts, if you don't have to pay 2.5% for your agent there may be more negotiating room. Even if you are in the bidding war situation, if you offer the same price you get the property because the seller doesn't have to pay buyers agent.


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## Dana (Nov 17, 2009)

Here's what I don't like about the BRA: it is positioned by the real estate industry as a document to protect the buyer, when it is obviously a document designed to protect the agent. It is misrepresented.


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## Addy (Mar 12, 2010)

We signed our BRA for 2 weeks with no holdover and we nixed the buyer is responsible for any % not paid. My realtor acted like she could not wrap her head around why I insisted on only two weeks, but I did insist and therefore she had no choice. I was ready to work with another realtor if need be, and we were crunched for time (~1 week to buy a house due to it being a military transfer).


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## Wishful_Aspirations (Apr 3, 2010)

Thanks everyone for your input.

I was able to retrieve my copy of my BRA, and the hold-over period is in fact 30 days. So at this point I'm out of the woods in a couple of days 

However when purchasing from a builder while working with an agent, does the agent get the comission from the builder once the purchase agreement is inked? Or upon closing, which could be at times a 1 year or more from when the deal is made?
If it's the latter, I would assume that the agent will have much less incentive and effort to find a builder home...

Also, is there anything to keep in eye out for from the builders side, where they may try to sneek is erroneous fee's to recoup the commission they have to pay to the RE brokerage, which they wouldnt have had to pay had I dealt with them directly?

In regards to the point made by MoreMiles; so should I basically ask the builder directly if they'll be issuing the commision reqeusted by the agent before signing? I wouldnt want to be stuck in a situation where the BRA says 3% for ex, and the builder only gives 1%, and i'm stuck with the difference..


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## Shayne (Apr 3, 2009)

If your realtor brings you to a builder you won't pay, the builder will. Is it in the price of the home? Yes. Will you be able to save the buyer's commission if you approach them without a realtor? You will never know.


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## Dana (Nov 17, 2009)

A relative who is a RE agent tells me that often builders won't work with agents. Agents don't like builders either since commission isn't paid until closing - no one wants to wait up to 18months to get paid.


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## 72camaross (Apr 26, 2010)

Homerhomer said:


> First off as others mentioned read the contract, secondly once your contract is over represent yourself and you may get the property cheaper. For sellers in many cases it's the bottom line that counts, if you don't have to pay 2.5% for your agent there may be more negotiating room. Even if you are in the bidding war situation, if you offer the same price you get the property because the seller doesn't have to pay buyers agent.


That is the whole point of the BRA... If the Realtor shows you a house and the contract expires (just the contract) and you decide to buy that same house then the Realtor can come after you for their commission. However; if you wait until the hold over clause also expires then the Realtor does not have a leg to stand on.




Dana said:


> Here's what I don't like about the BRA: it is positioned by the real estate industry as a document to protect the buyer, when it is obviously a document designed to protect the agent. It is misrepresented.


I agree. I don't see how it protects the buyer at all. I was told it was created to protect the Realtor in case a buyer was introduced to a home by the Realtor and then went back by themselves to buy it.

I just took the Realtor course...still up in the air if I want to get into this shady business.


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