It is a confusing paragraph so I wonder if yours also means that. I don't know why a 10% commission would be there or why a $500 fee would come from each person or what the "free title service" is.
I would never sign anything unless the business can explain it very clearly to me so that I can see how it reads just like they say. You could also ask their Broker or hire a lawyer. But I do think the agreement helps you a lot if the fees make sense- it is good to have someone represent you in the negotiations.
Buyers agency agreements can be great if the terms make sense. In my area they are used to protect the buyers agent from buyers who try to use the agents information, time and expertise, then dump them at the last minute trying to avoid paying a commission. Even when the buyer doesn't pay the commission. Most often it is enforced when a buyer buys a FSBO property and buyer and seller agree to complete the transaction without the Real estate licensee and try to cheat them out of commission.
That said, most buyers agreements state that if the buyers realtor receives a commission from the seller, no additional fees are due from anyone. They also spell out the set time the agreement is in force and asks the buyer to pay the realtor the commissions of a home they buy after the agreement has expired IF it is a home the realtor showed them during the agreement time for up to 6 months after the buyers agreement expires. Some Brokerages in my area are trying to add an additional fixed fee for the transaction. In my experience, I just say no. most real estate agents will let it go and are happy with the co-op percentage of 2-1/2- 3% or the 6% sales commission I offer. Those who insist on the additional fees find out pretty quickly they lost a listing. In the case I sell a low priced property I do offer and pay a "minimum commission" .
I do use Realtors for most of my transactions, It separates me from the seller or buyer, reduces emotional responses, and protects me from legal action IF I make a mistake. I have also found my sales prices are far more advantageous to me than trying it alone.
A lawyer doesn't replace an agent. An agent helps you locate houses that meet your criteria. The best thing is they might know of places that have not hit the market yet or pocket listing.
i'd find another realtor. I would not sign a buyers agent agreement.
Buyers don't usually pay anything for a realtor, the seller pays the fees. You will pay for title insurance, unless you write the contract asking the seller to pay. Personally I wouldn't sign a buyers agreement with an agent, what if you aren't happy with their service.
Not all agents use a buyer contract and instead work on good faith. Those who do, are typically very fair and only meant to protect the agent from getting screwed out of an earned commission. It is a mistake to assume all contracts are exactly the same.
There is always someone in any business trying to take advantage making the rest look bad as a result. Sometimes its not the agent that is responsible, but the agency they work for. And don't forget you can always negotiate a contract.
My wife and I found a real estate agent we both really liked. She offered to show us a few homes and one of which we were pretty excited over. Soon thereafter she presented us with a buyer agency agreement and I was pretty shocked after reading it. It was very lengthy, but in summary she was trying to make us, the buyers, pay for everything and included $500 flat rate fees on top of regular commission rates.
To make matters worse there were several paragraphs about percentages upwards of 10% she would collect if she acted as both buyer and seller agent on top of regular commission (3%) and $500 from each person in each party (buyer and seller). She also included documents requiring signatures for "Free Title Services" but in the fine print is said Fee of 1-2% of listing price.
Is this a common bait and switch tactic in the real estate business? I've interviewed a few other real estate agents so far and they all seem to pitch the same thing. "Lets not worry about the agreements until you feel comfortable with me and we establish trust".
My wife and I didn't sign her crummy agreement and she has yet to respond to our email telling her we expected better before moving forward.I asked another agent for their agreement up front and was told her secretary was out of town for a few weeks so she would have to get back with me. Another pitched the world, but once I asked to see their buyer agreement I never heard back.
We are now looking in to using an attorney instead.
