Current Situation for Owner Financed Property

[Juan Ayala]

Hi BP Family,

Love the fact that this community is filled with experts in the field and i can ask questions when i feel stumped. So worth the monthly membership cost. 

So currently i am looking at purchasing a cash cow property in Houston, Texas. I am active duty stationed in England and have no knowledge of the Houston, Texas area. Crazy I know... 

I now have a contract on the property and made the mistake of representing myself. But did feel pretty comfortable and had changes made to the contract and in the end am happy with the verbiage. The contract has been signed and now i am within my 15 day option period. I am sending half dozen inspectors from a house inspector to tradesman to assess the property on my behalf. 

My question is on the contract under broker information we selected and both agreed to "seller only as seller's agent." No agent was listed on my behalf as the buyer. But now the sellers agent is sending me the intermediary relationship notice to sign. I am assuming since i don't have an agent that the listing agent automatically represents me with this transaction. Is this true? 

I now do have a RE attorney assisting me with the review and closing. I do need an agent that will act on my behalf w/ a POA. What are your thoughts on having my RE attorney execute this on my behalf. Would love to hear the BP fam's view and recommendation on this....As always thank you for your time and feedback! Thanks BP family!!!!

[Drew Shirley]

If the seller is represented by an agent, you can't cut the agent out of the deal. If the agent's marketing found the buyer "ready, willing and able" to close, the agent's commission is earned and payable. Cutting the agent out now could get you sued. I know this because I recently successfully sued a couple of clowns who tried to do that very thing. 

OP, your attorney can act as your buyer's agent and collect a commission on the transaction. However, TREC prohibits brokers from splitting fees with non-agents, so you might have to re-work the contract (slightly) so that the seller pays his agent 3% and your attorney 3%. 

Good luck.