Posted by Joe on February 04, 2005 at 22:38:32:
Okay, appreciate the input.
Buyer’s Broker on new development - Posted by Joe
Posted by Joe on February 03, 2005 at 05:08:42:
I’m looking at buying a new home from a builder in California. I currently live in another state and could use a broker’s advice. The builder required a 3% reservation deposit and wants me to sign a reservation agreement which I don’t fully understand (its not clear but it seems like they want to be able to keep the 3% if anything happens to the deal). I’d like to have a broker acting on my behalf especially since I’m far away. Is there any obligation on the builder to split the commission? I didn’t have one initially.
Thanks for any advice.
Joe
Re: Buyer’s Broker on new development - Posted by chet
Posted by chet on February 03, 2005 at 22:12:12:
what part of CA?
There are tons of agents or brokers that would help you.
I am often uncomfortable when the sell’s broker is mine too.
Re: Buyer’s Broker on new development - Posted by River City
Posted by River City on February 03, 2005 at 11:14:47:
Normally the only reason a builder would split the commission is if the broker made the sale, and that would be up to the builder. Some builders do not allow other brokers to sell their homes, for this very reason.
Do not be afraid to add things to the contract. If the builder does not like them, s/he will cross them out. Then it is up to you as to whether or not you want to accept the contract as written. Everything is up for negotiation.
As far as signing the reservation agreement, I would add to the statement that if the deal fell through without the fault of the purchaser, that the purchaser does not forfeit the 3%. I would even have the contract conditioned upon loan approval and the home appraising for at least the sales price.
Re: Buyer’s Broker on new development - Posted by Joe
Posted by Joe on February 04, 2005 at 10:29:19:
It’s in Irvine in Orange County.
In the disclosure statement that came with the reservation, it was clear that the broker represents the seller. I didn’t think I could find an agent/broker that would help since no commission is offered.
Re: Buyer’s Broker on new development - Posted by Joe
Posted by Joe on February 04, 2005 at 10:23:36:
Ok, thanks for the tips. I asked and the builder won’t split the commission. They are also pressuring me to sign the reservation and contract quickly, they say to meet the schedule. Makes me wonder if I should try to find a real estate attorney, I don’t even know how to go about doing that. The seller also says that the builder won’t accept any changes to their contract, that others have tried in the past.
Re: Buyer’s Broker on new development - Posted by chet
Posted by chet on February 04, 2005 at 14:44:53:
I would call DRE and ask if that is legal (forced dual representation.
even w/ no representation, you might be able to find some help.
checkout legal aid service.
Re: Buyer’s Broker on new development - Posted by River City
Posted by River City on February 04, 2005 at 12:16:26:
You could always walk away from the transaction. As far as making changes to the contract, you can always try. Don’t be timid. If you are uncomfortable with something unreasonable, cross it out. If the builder does not accept the changes and you are able to live with it, no harm has been done.
Re: Buyer’s Broker on new development - Posted by Joe
Posted by Joe on February 04, 2005 at 22:40:55:
Okay, thanks.