Does The Buyer's Agent Have A Right To Commission? | REALTOR ...

Q: Here is a summary of my situation: (1) Mostly I found a house & asked the agent to arrange for a showing . (2)Agent takes me to see homes. (3) I put an offer in on a home and it was rejected.

My question is: if I want to submit another offer with new agent and actually attempt a negotiation, am I (and/or the seller) under any obligation to pay the buyer agent. I never signed an agreement with the agent. Also, now since I want to work with another agent, can i put offers on other house i saw with the first one. So, am I be liable to pay the first agent any commission or referral?
?Anonymous, Reston, VA

A: Here in Cali. The buyer NEVER pays the commission. Your first agent has what it called ?procuring cause? He/ She showed you the home and wrote the offer. He may have standing with the Realtor Board in your area but not with you. The second Realtor should know this by the way. Any property you have written offers on with Realtor 1, will have the same issue. All new offers written with Realtor 2 are o.k. and normal compensation will take place.
Danielle Graychik is a Realtor? with Realty Executives Experts in Rancho Cucamonga, CA.

A: The first agent who showed the house has what is legally called ?procuring cause?. That means that the 1st agent caused you to see the house and showed it to you for the first time. Now, even if you use a different agent to make a 2nd offer, the first agent has the right to earn the commission.

This rule holds true for ANY properties the first agent showed you.

Consult with your new agent. Ask him/her to show you the language in a Buyer Agreement. Usually there will be a paragraph describing how long procuring cause will be in effect. I realize you did not sign an exclusive buyer agreement, which does leave you with a gray area. But technically, the 1st agent could make it messy by claiming procuring cause and forcing litigation, which would hold up the close of escrow on one of those houses.

Have you advised the first agent that the two of you are not a good match and you?ve decided to work with a different agent? Have you also told the first agent that you would like to her to write a letter releasing her right to procuring cause? If she wont? do that, perhaps she would agree to receive a referral fee by ?giving? you to the new agent. In that scenario, your agent would give 25% of his/her commission to the 1st agent as a sort of ?thank you for sending me a qualified buyer?.
Denise Shur is a Realtor? with 1:1 Realty in San Jose, CA.

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Related posts:

1. How Do I Terminate A Relationship With My Buyer?s Agent When There Is No Contract Signed?
2. Can A Broker Who Is A Buyer Share Commission With A Buyer?s Agent?
3. Does The Buyer?s Agent Have A Right To Commission?
4. Is The Realtor Entitled To A Commission?
5. Is It Smart To Use The Listing Agent As Sales Agent?

Source: http://www.realtor.com/blogs/2012/10/17/does-the-buyer%E2%80%99s-agent-have-a-right-to-commission/

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