Florida Buyer's Agent Agreement Questions

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Topic Author
MarkerFM
Posts: 501
Joined: Fri Nov 30, 2018 4:18 pm

Florida Buyer's Agent Agreement Questions

Post by MarkerFM »

My son and DIL are first-time homebuyers beginning to look for houses. Because they know very little about anything related to buying houses, and I can only guide them so much from a distance, and they are easy prey for unscrupulous players, I suggested they get an exclusive buyer's agency agreement with the person they wanted to work with (a referral from a friend).

This agent sent them an agreement with (to me) the following issues:

1. Eight month term (yes, it can be cancelled with 90 days notice, but that can get messy). That's a long time.

2. The description of the property they are searching for was completely blank. I suggested they at least fill in the area they are looking in. They literally could decide to buy 300 miles away and they would still owe her a commission.

3. She wants 3% of any transaction, and there is no provision for her to accept her normal split if it is lower. If they decide to buy something that has a 2 1/2% selling agent commission, they would have to pay her the difference.

4. There is a provision that allows her to assign or transfer the agreement with no limit without their consent.

They pointed out these problems and asked for her to change them. She refused to make any changes, and asked if they would prefer not to have an agreement. I told them they needed one and she was being unfair, so they have told her they aren't going to work with her.

Am I expecting too much?
J295
Posts: 2792
Joined: Sun Jan 01, 2012 11:40 pm

Re: Florida Buyer's Agent Agreement Questions

Post by J295 »

In our market you would be spot on and you identified legitimate issues.
megabad
Posts: 3316
Joined: Fri Jun 01, 2018 4:00 pm

Re: Florida Buyer's Agent Agreement Questions

Post by megabad »

An eight month term would be unheard of in my area, but Florida may be different. There are other issues but an Agent offered to operate without agreement so why not take them up on that?
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jfn111
Posts: 1225
Joined: Fri Nov 08, 2013 10:42 pm
Location: Minnesota

Re: Florida Buyer's Agent Agreement Questions

Post by jfn111 »

My View as an agent-
I usually do 90 day agreements.
Property description, in my market, is just a checkbox saying for personal or investment and covers the whole state. I have never heard of anyone using a specific mile range.
As far as being transferable if they change where they are looking I will refer them to an agent knowledgeable in that area.
I use 2.7% for the commission with a caveat that this will be reduced by the whatever the seller is offering. I have done a couple of 2.5% sales where I never asked the buyer to pay the difference.
Every market is different and the norm in Florida may be quite different than MN.
smitcat
Posts: 6957
Joined: Mon Nov 07, 2016 10:51 am

Re: Florida Buyer's Agent Agreement Questions

Post by smitcat »

MarkerFM wrote: Fri Oct 30, 2020 2:22 pm My son and DIL are first-time homebuyers beginning to look for houses. Because they know very little about anything related to buying houses, and I can only guide them so much from a distance, and they are easy prey for unscrupulous players, I suggested they get an exclusive buyer's agency agreement with the person they wanted to work with (a referral from a friend).

This agent sent them an agreement with (to me) the following issues:

1. Eight month term (yes, it can be cancelled with 90 days notice, but that can get messy). That's a long time.

2. The description of the property they are searching for was completely blank. I suggested they at least fill in the area they are looking in. They literally could decide to buy 300 miles away and they would still owe her a commission.

3. She wants 3% of any transaction, and there is no provision for her to accept her normal split if it is lower. If they decide to buy something that has a 2 1/2% selling agent commission, they would have to pay her the difference.

4. There is a provision that allows her to assign or transfer the agreement with no limit without their consent.

They pointed out these problems and asked for her to change them. She refused to make any changes, and asked if they would prefer not to have an agreement. I told them they needed one and she was being unfair, so they have told her they aren't going to work with her.

Am I expecting too much?
I do not know which area of Florida you are looking at but our current agent in Brevard did not have any of these issues to resolve.
BlueGator
Posts: 7
Joined: Sat Dec 08, 2018 3:27 pm

Re: Florida Buyer's Agent Agreement Questions

Post by BlueGator »

I find those terms a little absurd. I am in the process of buying a house in Volusia through a Redfin Agent (Very reasonable commission, and a refund of a portion as well)

Even in previous searches have not had to sign any agreements regarding agents and commissions until I have decided to place an offer on a property. Even then, it was a protection for the realtor stating that the owner would pay her if I purchased the home with “x” timeframe, with or without the brokerage services.
Topic Author
MarkerFM
Posts: 501
Joined: Fri Nov 30, 2018 4:18 pm

Re: Florida Buyer's Agent Agreement Questions

Post by MarkerFM »

Thanks for the replies so far. To clarify, I asked them to get a buyer's exclusive agency agreement to protect them. Otherwise, in Florida (and probably elsewhere), the agent is working for the seller and owes the buyers no particular loyalty or even confidentiality. http://gailmarcarelli.com/florida-real- ... ationship/
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