Do I Have to Pay a Real Estate Agent If I Change My Mind?
The signed contract you have with your real estate broker determines the amount you may or may not owe the agent. Some real estate brokers enforce the terms of the contract that might hold you responsible for a payment should you change your mind during a transaction, while other brokers may not.
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Real Estate Agent
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Your real estate agent may be the licensee who lists your property for sale, paid by commission or a fee. Technically, your contract is with the licensee's designated broker, and the broker makes the finial decisions regarding payment. If you are the buyer, looking for property, you won't pay your real estate agent unless you have a buyer broker agreement with the agent's broker. Typically, the seller's agent pays the buyer's agent at the close of escrow.
Listing Contract
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The listing contract or employment contract is the written agreement you have with the listing agent's broker, specifying the terms of the agreement. If it is a commission payment, the contract typically specifies the percentage of the sale price you will pay the broker should she bring a qualified buyer to pay the list price. Therefore, if the listing agent brings you a qualified buyer, willing to pay the full purchase price, it is possible for the broker to enforce the terms of the contract and require you pay the commission even if you decide to cancel the listing. The ability of the broker to enforce the contract may vary according to state law.
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Buyer Agent
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Some buyers opt to enter into a buyer broker agreement, where the buyer hires the agent to represent him. Typically, the contract specifies that the payment can come from the commission offered by the seller's agent, yet it establishes a way for the agent to receive payment should the buyer want to purchase property not offering a commission to the buyer's agent. Any fee owed the agent, should the buyer change his mind, is subject to the terms of the buyer broker agreement.
Other Liabilities
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If you change your mind in the middle of a real estate transaction, your agent or his broker may waive any possible charges, but that doesn't mean you won't have to pay someone. If you cancel a purchase offer, you may lose your earnest deposit. If you are selling property and back out of a sale, the buyer may seek damages or demand you pay any expenses he incurred, such as inspections and appraisal.
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