Buying or Selling a Home/Agent compensation
Dear Ms. Worthington,
Thank you very much for volunteering on this site! While you are selling real estate in TX, my question scenario is in LA but I hope and trust you will have no problems answering my questions. Background: We are selling a house in Louisiana as a FSBO. (We are doing FSBO mostly due to major financial challenges we are about to face).
We have paid an agent $400 to give our home an MLS number for 6 months. As part of the listing, we have agreed to compensate a buyer’s agent some amount. And sure enough, whenever we are contacted by an agent, one of the first things they wish to reconfirm, is if we are indeed willing to pay them a (usually specified amount of) commission.
We just recently received an offer from an agent. (She has the same last name as the buyer and we learned, she is the ex-wife of the buyer).
In conversations with the agent there has not been any mention of compensation for her, nor is there anything in the contract. We are a bit puzzled about this. If it is not in the contract, would she have any legal basis for asking us for anything later?
The offer stipulated – among other things – the following: the buyer wants to rent my house from June 1 till September 1 and then buying it. Buyer doesn’t have a house to sell but we learned he is the Air National Guard and will deploy sometimes in September. (We wonder if maybe the increased pay then is factored in and is the reason, or if he doesn’t want to break his apt lease).
Should I be concerned about the terms of this contract?
How could I make sure the buyer will be able to buy after two months of already living in my house?
What should I put in the contract to protect my interest?
I am thinking about proposing a rental agreement for $40/day – starting on 1 June - until the closing.
But while hoping for the best, would like to prepare for the worst and would like to also propose them an agreement that would state that if by 1 September the buyer cannot buy the home then the agreement will convert to a conventional rental of $1900/month w/ a $5000 security deposit?
Also, should I be concerned that the buyer's agent – as of yet - has not asked for any compensation from me? Could this come up later if it is not in the contract?
Once again, thank you VERY MUCH in advance.
PS: We are moving to San Antonio, TX but have friends and family all over the state. We WILL remember your website! :)
I would recommend getting your listing agreement and reading it. That probably states the commission for the buyers agent.It is hard to tell what to do without seeing the offer.
I would ask for a large non-refundable deposit. The Realtor has to disclose if she is related to the buyer. I would have a complete agreement in writing for the sale and the lease. Check the status for what it takes to evict someone also. I don't know the laws in that state.
Your Realtor will have to explain all that to you, ask him to sit down with you and go over that.