Expert: Dick Dennis - 4/8/2010

Question
We recently signed a buyer broker agreement with an agent prior to making an offer on a home.  The house received a higher offer and we didn't receive it.  I understand we are contracted to pay her a commission if we buy a home that she shows us during the length of the contract or after it expires.  We have had an owner call us and tell us he is willing to sell his house to us. Are we required to pay her a commission and involve her if we find a house for sale by owner on our own?

Answer
The key word in this, Rachel, is "exclusive." If you signed an exclusive buyer's broker listing agreement that means it doesn't matter who or how you came to find and buy a property, you are obligated to pay a fee to that agent. Please read your agreement and verify this because it is good until it expires. You say the agreement is good "after it expires" too. Not necessarily. She must give you a list of the houses she showed you, and the house you buy must be on that list, in order for that clause of your agreement to be valid AFTER it expires.

Don't you think it is a good idea to involve your agent, as you put it, in purchasing a house? I should think that she knows lots more than you do to make sure the purchase goes through all right without jeopardizing your interests. I do wish you well.

Dick Dennis
dixiedee13@aol.com