[Condo George]

http://www.thestar.com/moneyville/r...ng-to-buy-a-condo-get-to-the-back-of-the-line

 

[daveto]

I found a house I like and contacted the listing agent. Initially she stated that she will represent both sides in my case and we would get benefit without an agent. But when I started to do the calculation for my offer, basically deduct the 2.5% from the regular offer prices and stated that there is a room of a few thousands dollars for her work representing use, really just draft an offer, she said that's not how it works, I should not take commission into consideration when making an offer, just think what the house worth for me. The commission is paid by the seller, they will discuss and I don't need to know anything about it. I am confused:

1. From legal perspective, shouldn't the 3 parties (buyer, seller and agent) sign an agreement that specify the situation that this is a multiple representative situation? So everything is clear and everybody is acknowledged?
2. shouldn't the commission payment schedule be written on paper, we, as buyers have the right to know how the commission is paid?
3. what's the correct process to work on this transaction? Shouldn't I, when making an offer, attach a separate schedule indicating that our offering price is lower by $$$$ because the savings on the BA's commission, and get the seller sign back with acknowledgement?
4. When should the lawyer be involved?

Is this listing agent following the policy or is she/he trying to hide things from buyer/seller?

Kiki,

If I understand correctly, you agreed to proceed without a buyer's agent on the expectation that the buyer's agent 50% share of the commission would be deducted from your purchase price.

However the listing agent thinks that because they are representing both sides, they will get to keep the full 100% of the commission.

I wasn't privy to your discussion with the listing agent, so I don't know if they are pulling a fast one (probably) or you and they just misunderstood each other.

But in the situation as proposed by the listing agent, there is absolutely no point for you to proceed without your own, separate buyer's agent who will negotiate exclusively on your behalf.

 

[Tuscani01]

Kiki,

If I understand correctly, you agreed to proceed without a buyer's agent on the expectation that the buyer's agent 50% share of the commission would be deducted from your purchase price.

However the listing agent thinks that because they are representing both sides, they will get to keep the full 100% of the commission.

I wasn't privy to your discussion with the listing agent, so I don't know if they are pulling a fast one (probably) or you and they just misunderstood each other.

But in the situation as proposed by the listing agent, there is absolutely no point for you to proceed without your own, separate buyer's agent who will negotiate exclusively on your behalf.

Thats how I understood it too. If the selling agent is not going to pay out the comission that would normally go to a buyers agent, the deal is pointless. Go out there and find a buyers agent who will represent your interest and yours alone.

 

[js97]

Listing agents will generally have contingency on additional commision if they are the dual agent.

Will it get you a better deal? Generally not, especially in this heated market. Although Agents do have an incentive to be a dual agent (more commission), they are also oblidgated to their current listing customer. Sellers will eventually be buyers, and possibly return customers and provide referrals. They're not be likely to sacrifice that for a quick buck.

From my experience (not as an agent, but an observer in the industry), buyers without agents generally will not pay a premium that buyers with agents will. They are also not as serious as ones with agents.

 

[OolloO]

Any instructions if neither you or the seller has a agent? I'm assuming you would each both go through a lawyer.

Any idea what the cost would be in comparison to using a lawyer after a normal purchase (with agents)?