First time homebuyer

Question regarding realtor and a private sale.

We had a neighbor wanting to private sale a house to us. Then they decided to go with a different buyer so we hired a realtor to look at houses in the area. We weren’t able to find any because our area has become a hot spot for buyers. It’s been a couple months and now our neighbor is wanting to sell us that original house again because their buyer fell through. Do we have to pay a realtor fee on that original house even though our realtor hasn’t been involved in that house for anything?

The wording in the document we signed has me a little confused.

1. BUYER-AGENCY TERMINATION and RIGHTS OF PARTIES FOLLOWING EXPIRATION OR TERMINATION OF AGREEMENT: This agreement shall be effective on _________________ (mm/dd/yyyy) and shall continue until midnight on 08/26/2025 02/26/2026 _________________ (mm/dd/yyyy), (the “Term”) unless terminated in accordance with the provisions of this section. The parties agree to the following provision for the termination of this Agreement (Broker to insert terms of termination): ____________________________________ Buyer can cancel with two (2) days written notice to broker A. Compensation may still be due to the Broker following an expiration or termination of this Agreement by Buyer or Broker as outlined in Paragraph 7 of this Agreement; Paragraph 7 of this Agreement shall survive the expiration or termination of this Agreement. Notwithstanding the rights of the parties to terminate this Agreement as provided herein, Broker, in Broker’s sole and absolute discretion, may terminate this Agreement at any time and effective immediately in the event Buyer provides any false information or misrepresents any fact to Broker or other third-party. If a Contract of Sale is entered into by Buyer during the Buyer Agency Term, which provides for settlement to occur after the expiration of the Buyer Agency Term, this Agreement shall be automatically extended until settlement, as provided for in the Mountainside Home Realty Buyer/Tenant Brokerage (mod. 2024) 1 B. C. dotloop signature verification: dtlp.us/uXRK-mIKL-mmr9 Contract Sale, has occurred, including any extension of the settlement by mutual written agreement between Seller and Buyer.
2. BUYER RESPONSIBILITIES AND NOTICE REGARDING “COMING SOON” LISTINGS: Exclusive Relationship with Broker: Buyer will work exclusively with Broker during the term of this relationship. Use of another Broker during the Term of this Agreement shall be deemed a breach of this Agreement. The provisions of Paragraph 7 herein shall apply if Buyer contracts with another Broker following the Term of this Agreement, unless Broker executes a release thereof. A. Financial Information: Buyer will furnish Broker with necessary financial and personal information to reasonably establish Buyer’s ability to purchase or lease property. B. Signs or Advertisements for Property: If Buyer sees any signs or advertisements for properties being offered for sale or lease, Buyer will not contact the Seller or agent of the Seller but will first contact Broker named herein, who will provide information about and arrange to see the properties. C. New Home Builders and Open Houses: Buyer agrees not to make a first visit to any new home builder’s model nor contact any other agents representing sellers of new homes without being accompanied by Broker. Buyer agrees not to enter “Open House” properties unless accompanied by Broker or after having had Broker make arrangements with the listing broker. D. Notice Regarding “Coming Soon” Status in the MLS: The “Coming Soon” listing status is an option for properties listed in the MLS that are not available but will be soon. MLS subscribers may view listings under this status. However, properties listed under the “Coming Soon” status may not be shown and are not syndicated to public real estate websites. The “Coming Soon” status is automatically updated to “active” on the expected on-market date if not made “active” sooner.
3. BROKER RESPONSIBILITIES: The Agent and Broker agree to: A. Locate Real Property: Use professional knowledge and skills to locate and present real property, which is available for purchase or lease and suitable for the Buyer’s needs. B. C. Assist the Buyer: Assist Buyer through the process of property acquisition. Represent Buyer’s Interests: Represent the interests of the Buyer in all negotiations and transactions regarding the acquisition of real property.
4. BROKER COMPENSATION: The amount of Broker compensation is not prescribed by law or established by any membership organization with which Broker is affiliated, but is agreed upon between the parties. In the event of a sale or lease, the Compensation to be paid by Buyer to Broker shall be: ______. 3 % of the purchase price with a flat fee of $2,000 The Compensation shall be deemed to have been earned by Broker and shall be due and payable to Broker upon any of the following events: A. During the term of this Agreement or any extension thereof (i) Buyer or any person or entity acting on Buyer’s behalf executes a written agreement to purchase or lease any Property, through the efforts of anyone including Buyer, in which event Buyer, within seventy-two (72) hours thereof, shall furnish Broker a copy of such written agreement; or Mountainside Home Realty Buyer/Tenant Brokerage (mod. 2024) 2 dotloop signature verification: dtlp.us/uXRK-mIKL-mmr9 (ii) (ii) if during the period of 30 _________ days following the expiration or termination of this Agreement, Buyer executes a lease or written agreement to purchase any Property that Buyer inspected, made inquiry about, or negotiated to purchase or lease during the term of this Agreement or any extension thereof, in which event Buyer, within seventy-two (72) hours thereof, shall furnish Broker a copy of such written agreement; B. Buyer defaults or voluntarily agrees to terminate a sale or lease; or C. Buyer breaches this Agreement. In the event of a sale, the Compensation due Broker shall be paid at settlement as a convenience to Buyer. Buyer acknowledges and agrees that settlement on the Property shall not be a condition precedent to Buyer’s obligation to Broker as herein provided. If Broker prevails in any action brought to obtain payment of the Compensation, Broker shall also be entitled to recover in such action Broker’s reasonable attorney’s fees and court costs. Laws regarding payment of compensation to buyer’s agents changed in 2024. As such, any amount of commission to be paid from Seller to Broker must be negotiated in a contract of sale with the Seller. If this can be negotiated, Broker is authorized to receive compensation from the listing broker/seller. The amount of compensation received by Broker from a listing broker or from a seller shall be credited against the Compensation agreed upon in Paragraph 7.A. Buyer shall be obligated to pay any difference between the amount owed and the amount paid by the listing broker/seller. In the event the amount of compensation offered by the listing broker/seller is greater than that specified in Paragraph 7.A., Buyer authorizes Broker to receive such compensation and to retain any such additional compensation without pro ration or rebate to Buyer. The amount of any such payment made by listing broker/seller shall be with the seller’s and Buyer’s prior knowledge and consent and shall in no way affect the obligation of the Broker to act on behalf of the Buyer in the transaction.
5. DISCLAIMER AND LIMITATIONS: A. Limitations of Broker’s Ability: Buyer acknowledges that Broker is being retained solely as a real estate agent and not as an attorney, tax advisor, lender, appraiser, surveyor, structural engineer, certified home inspector or other professional service provider. Buyer has been advised to seek professional advice for legal, tax and other matters. B. Representation of Other Buyers: Buyer acknowledges that Broker may represent other Buyers and that other potential Buyers may consider, make offers on, lease or purchase properties through Broker. Buyer consents to Broker’s representation of other Buyers before, during, and after the expiration of this Agreement. C. Subsequent Offers: Upon entering into a Contract of Sale or Lease pursuant to this Buyer Agency Agreement, Broker shall have no further obligation hereunder to procure any subsequent properties for Buyer. D. Ministerial Acts: Buyer hereby consents to and authorizes Broker and Broker’s agents to provide ministerial acts as defined by law on behalf of Buyer to third persons in connection with the purchase or lease of the Property. E. Confidentiality of Offers: Buyer acknowledges the possibility that sellers or seller’s representatives may not treat the existence, terms or conditions of the Buyer’s offer as confidential information. Mountainside Home Realty Buyer/Tenant Brokerage (mod. 2024) 3 dotloop signature verification: dtlp.us/uXRK-mIKL-mmr9
6. INTRA-COMPANY AGENT REPRESENTATION: When the Buyer and Seller are each represented by sales associates of the Broker, the Broker is a dual agent. Dual agency is permitted only when disclosed and with the knowledge and written consent of both parties. However, the sales associate assigned by the Broker as an intra- company agent may continue to provide the same services that a buyer’s agent can provide on a property listed with another broker. In the event Buyer elects to consent to dual agency, Buyer agrees to sign a Consent For Dual Agency form. In the event Buyer elects not to consent to dual agency, Buyer acknowledges and agrees that Buyer will not be advised or shown properties listed by Broker and will only be shown properties listed by other real estate brokers. This Agreement is binding upon the parties hereto, and their personal representatives, successors, heirs and assigns. If this Agreement is signed by more than one person, it shall constitute the joint and several obligations of each. This Agreement contains the entire Agreement of the parties and cannot be changed except by the written agreement of the parties hereto. Buyer warrants that there are no other existing agreements or conditions other than as set forth herein. This is a legally binding Agreement; if not understood, seek competent legal, tax or other professional advice. Buyer has not relied upon any statement or representation of Broker except as set forth in this Agreement.

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source https://www.reddit.com/r/RealEstate/comments/1pknoq3/first_time_homebuyer/