If A Deal Fall Through Does The Buyer's Agreement Still Stand ...

Q: We recently signed a buyers agreement with a Realtor during the process of making an offer on a house. The offer was contingent on our current home selling. With this in mind, the realtor but a date in both the addendum and the buyers agreement for 6 months from now to give us time to sell our current home. The day after we put the offer in, the seller received another offer with no contingencies and they accepted this offer. At that point we started talking with a builder to build a new house in the same area. The Realtor that we signed the original offer with is saying that she has the right to represent us and get a commission on the new construction contract because the buyers agreement and addendum has a end date of 6 months from now. Is this true? We assumed that since the original buyers agreement had an addendum attached to it and that the addendum was now void since the house was sold to another buyer, that the buyers agreement would also be void. I guess the question is: If a buyers agreement had an addendum attached to it and that deal falls through, does the buyers agreement still stand or does the addendum take over?
?T, Richmond, VA
A: Hi Buyer in Richmond:
Having a Realtor to represent you is always the smart thing to do. Even if you are talking to a builder, why wouldn?t you want your Realtor to represent you? It doesn?t cost you anything. Every deal is priced to include the buyers representation. There is no benefit to you whatsoever to purchase a home without a Realtor. I wish Legal representation was prepaid by the other party.
I do not understand why everybody think they should self manage real estate transactions. This is the only business where you get free service: Use it. This is the BIGGEST transaction most people will ever make in their life time. Realtors are trained ? and much of our training is in Real Estate Law to protect our clients from shady deals. I have had to go to court to help many people who were taken advantage of because of bad real estate deals and the only ones I have ever went to court on is for clients whom did not have a Realtor.
This is too serious to not have your own Realtor. You should have a Realtor for every single real estate transaction. Your Realtor should be as close to you as your banker. That is a relationship you should develop and keep.
If the Realtor takes a contract to represent you for 6 months then let her do her job. If you want a new home. Tell her what you want and let her represent you. That is what you hired her for ? to help you get a new home. If you had intended it to be for one offer ? then why did you lead her to believe you would give her 6 months.
You signed the contract ? therefore she has every reason to believe you are her client and its her job to represent you on any transaction you do within those 6 months. Why wouldn?t you want her to serve you. The builder?s agents represent the builder ? not you. You should never go into a home purchasing situation and not have your own Realtor ? no more than you would go into court and use the other parties lawyers. Would you?
Finally, I urge you to take advantage of the skills the Realtor has. Let her help you. Tell her what you want and let her do her job. There is no need for you to ever communicate directly with a seller. That is what you have her for. Sellers and Sellers agents have 100% more respect for clients with agents. And we really prefer to work with agents ? we really do. To some unscrupulous sellers taking advantage of you is always tempting and they can do so easily. And they laugh at how silly unrepresented buyers are. The temptation is removed when a Realtor stands between you and the seller.
Brandi Callum is a Realtor? with Homelife Alert Real Estate Services in Lithonia, GA.
A: The answer (based on the information you?ve given) is Yes, if you are already under contract on the new build ? then the buyer?s agency agreement is intact for this deal as well. If you are not yet under contract, you can most likely terminate the buyer?s agency agreement with her by sending a letter terminating the agreement. If she?s been a decent Realtor to you though, you may want to consider keeping her on through the new build process to help you through it. There are a lot of navigation points that she?ll be able to steer you through. Just my thoughts ? hope it goes well for you. Cathia Bell Synergy Realty Group, Inc.
Cathia Bell is a Realtor? with Synergy Realty group, Inc. in Colorado Springs, CO.
A: Unless the addendum stated that you were only being represented by the agent for that one specific transaction, then you have a valid contract in place for any home you build or purchase within the 6 month time frame.
Paul Aspelin is a Realtor? with Beyond Homes Realty LLC in Victoria, MN.
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