Skip to main content

Exclusive Buyers Agreement Questions (Virginia)

We have interviewed several agents and narrowed it down to 2 that we liked the most. One of them agreed to do some showings with us this afternoon, but sent over an exclusive agreement for me to sign, which wasn't unexpected but some of the verbiage in here stands out to me. Just wanted to check to see if I'm crazy or this seems excessive -

    1. TERM AND TERMINATION: This Agreement commences when signed and, subject to the COMPENSATION paragraph, expires at 11:59pm on JULY 31, 2020 ("Expiration Date"). Either party may terminate this Agreement prior to the Expiration Date by notice to the other. In the event Buyer wishes to terminate this Agreement prior to the Expiration Date, without good cause, Buyer shall compensate broker $1000 ("Early Termination Fee"), in addition to any compensation otherwise due pursuant to this Agreement.*

  • 8B. Payment. Buyer shall pay compensation in the amount of 3% of the sales price (or as per MLS this was hand written in) Commission ("Broker's Fee") to the Broker if Buyer enters into a contract to acquire real property during the term of this Agreement and goes to settlement on that contract at any time thereafter. In most cases, seller pays Broker's Fee, but in the event seller does not pay any or all of the amount due, Buyer hereby agrees to pay any and all remaining Broker's Fee due to the Buyer's Broker. Broker may retain any additional compensation offered by the seller or seller's representative, even if this causes the compensation paid Broker to exceed the fees specified above.

The early termination stood out to me - first off, I was going to ask them to shorten the time period - I don't want to be committed to them until the end of July if things don't work out. Then, the termination fee to me seemed ridiculous - and what classifies a "good cause"?

For 8B, we are not expecting to purchase anything not listed on MLS, but would it be unreasonable for me to request this to be adjust to remove the 3% part and only state "as per MLS"?

submitted by /u/notsosure9999
[link] [comments]

source https://www.reddit.com/r/RealEstate/comments/fav36m/exclusive_buyers_agreement_questions_virginia/
Labels:

Comments

Post a Comment

Popular posts from this blog

North Carolina – “One to Buy; Two to Sell”

I realize I will likely have to contact a real estate attorney but also hoping to hear insights and experiences from others! I have a house in NC that I bought by myself in 2009, and paid off, in full, in 2022. I got married in 2023. My spouse and I have not lived in the house as our "marital residence". We have maintained separate residences even after we got married. (That a separate topic!). I am now selling this house. Realtors have told us that my husband has to sign the deed at time of transfer but I am not convinced since the house has not been our marital residence. The realtors like to use the phrase "one to buy; two to sell", which seems like a broad-stroke statement which is not applicable under all circumstances. And of course, the realtors don’t realize the details of my specific circumstances: I purchased and paid for the house in full prior to marriage Only my name is on the deed And most importantly, we have never lived in the house as a marit...
Post a Comment
Read more

Aren't comps/CMAs useless with buyer credits at close happening now?

I'm looking into buying a new construction townhouse in my HCOL US city. I'm seeing builders offering interest rate buydowns worth $20k-$60k on $800k homes (rather than just lowering prices) in order to keep their comps high for their other units, now that buyer demand has been declining. I asked my agent about these, and he said these buydowns aren't even the full story: buyers can write all kinds of other credits into an offer, like their closing costs, prepaid sewer fees, etc. Apparently cash buyers can just write in a "buyer credit at close" for any amount in their offer. So a new townhouse that appeared to sell for $800k in the MLS might have actually been a cash offer with a $100k+ buyer credit at close, meaning the buyer only spent $700k or less in total, but to the rest of the world they can only see the $800k! So that made me realize I can't trust comps/CMAs for other new construction townhouses. The sales prices could be way lower than they appear...
1 comment
Read more

Co-signing as non-primary resident - effect on size of required downpayment & first time home buyer status?

Contemplating co-signing on a house with my mom and splitting the mortgage payment. I currently have a significantly higher income and much better credit than her. I'm looking at potential home costs and related downpayments but have difficulty using some of the online estimators. From my perspective, this would be somewhat of an investment purchase (I intend to stay in my current location in a different state and contribute to the mortgage), however, for my mom, this would be a primary residence. For purposes of the downpayment size and the type of mortgage arrangement, would it be an investment property or a primary residence? Many thanks for any help. submitted by /u/piercalicious [link] [comments] source https://www.reddit.com/r/RealEstate/comments/km4hvl/cosigning_as_nonprimary_resident_effect_on_size/
Post a Comment
Read more