Exclusive Buyer Representation

[Ben H.]

I have bought/sold a number of properties in North Carolina but it has been a few years. Currently working on an offer to purchase some farm land for a future personal home build. Listing agent passed me over to another agent in same firm for me to work with as my buyer’s agent. My buyer’s agent is asking me to sign an “Exclusive Buyer Agency Agreement” that states I’ll only use her for real estate deals for the next 12 months and I as a buyer guarantee the firm a 6% commission. 

I don’t remember signing this in previous deals (but I could be wrong). Is this normal/legit?

[Don-Carlos Moniz]

@Ben H., most firms will only work with an exclusive buyers agency.  I personally work with buyers with just a verbal and do the exclusive for a specific property at the time of offer.  12 months seems a bit excessive, but it varies from agent to agent and firm to firm.  Page one, section 4 is where the compensation for a standard transaction is entered (somewhere around 2-3% is fairly common).  When you jump down to page five, item f (under the note box), this is where the dual agency compensation goes.  That only applies if you purchase a property listed by the same brokerage that your agent works for.  That number is what the firm expects to collect for the deal in total from the listing and buying sides.  Basically, all expected compensation has to be listed on the form.  If the 6% is on page one, I would recommend a longer conversation with your agent - if it is on page 5, that is not an unusual number.  They should go over each part of the form with you before you sign.  Good luck in your search.