Quote:
Originally Posted by manaboutown
Who pays has nothing to do with it. Actually, an agent's earnings normally come out of the proceeds from the sale. This is the case for sellers' agents, buyers' agents and transactional agents. If a buyer has a buyer's agency contract with a real estate agent that agent works for the buyer and is legally obligated to represent the buyer, not the seller. A buyer may of course separately hire and pay an agent.
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Yes, it does. It's not true that a buyer can enter into a contract with an agent to legally represent them, unless the buyer agrees to pay money to the agent. That is basic contract law. It is not a contract unless both sides provide some type of compensation. I don't know of any real estate agents who offer to represent buyers on a legal basis and to require the buyer to sign a legally binding contract. That is because they represent the seller through the listing agreement, and to represent the buyer would be a conflict of interest. Post No. 37 explains this very well.