Real Estate Law and Ethics - Does the agent have the right to commission?

Question

Here is my situation: We called the seller's agent to show us house A; the agent who came was not the seller's agent, but just another agent that worked in his office. His business card said "buyer's specialist".

After we saw House A, he mentioned another house, House B was just put on the market, we went and saw that and really liked it.

If we plan on purchasing House B, is the agent that showed us the house, entitled to the commission? We did not sign anything, and the conversation was never brought up.

HELP PLEASE!

Answer 1

Yes, the agent is entitled to the commission, ethically.   But with no contract you can make an offer via who ever you like.

I personally would not just accept any one who just showed up as my agent.   You want someone with experience to get the house to closing, there is a LOT more to the job then showing houses.

I am going to guess agent b has no clients of their own and received a pity referral from the listing agent.   You do not want the agent the others feel sorry for.

Answer 2

You can buy House B from any agent you wish.  Your agent will be required to split the commission with the original "buyer specialist" because she introduced you to the property.

Answer 3

Yes, the agent is entitled to the commission involved.  He is considered 'the procuring cause' for introducing you to the property.  He informed you of its existence and showed you the property.  Regardless of which agent you use to finalize this potential purchase, the agent who showed you the house is entitled to the commission.

You will need to check your state's practices and laws to see whether or not this agent acted as your buyer agent or as an agent of the sellers.  In either case, the agent is due the 'sell side' of the commission involved.

Answer 4

If you purchase house B then yes, the buyer's specialist is entitled to the commission from the seller.  The seller pays commission not the buyer, provided he is licensed and allowed to receive "commissions" on home sales.

Answer 5

Legally, of course, he''s not entitled to a commission for just showing you the house. Now, in order to buy the house, you're going to have to write up an offer, and deal with counter-offers, contingencies, inspections, etc. Most people will want a professional to help them with that process.

If he helps you with all of that, then you'd probably owe him something.

Answer 6

he will be paid by seller. you did not sign him as a buyers agent.

Answer 7

It's your right, as a buyer, to choose whatever realtor you like.

Squabbles about commissions happen between realtors but rarely affect the buyer. However, it might help you to understand how commissions are normally paid.

The seller normally pays a percentage of the sales prices as a commission. That commission is then divided equally between the selling real estate company and the buyer's real estate company. Each of those two offices then divides their share in two, part going to the agent who handled the transaction, and part going to the owner of the real estate company. In effect, the commission gets divided 4 ways, the seller's agent, they buyer's agent, and both agents' brokers. If the selling company is lucky enough to also be the buyer's agent is just gets divided two ways.