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Updated over 2 years ago on . Most recent reply
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Need Help with Reviewing Offer Agreement with a Real Estate Agent
I need your help for me to understand my first "offer and agent agreement".
The background: I am the buyer, and this agreement is between my real estate agent and me (client). I am buying a house from a seller with the seller's financing. One of the options that the seller is demanding is for them to stay in the property for two years for free in exchange for 0% interest rate, and they plan to move within after the two years.
I am compiling an offer for the house, and the agent is asking me to sign a document that has language that I am not fully understanding.
In my understanding, the agent's commission is paid by the seller, but in "Client's Obligations" it seems I am responsible for 3% of the purchase price of the property or 50% of the aggregate rental of the lease and all options as exercised. I am not sure how "50% of the aggregate rental of the lease" would mean for me financially. I am assuming this is the language used for a rental property, so 3% applies for this instance, but I thought the seller pays for the commission. Are commissions and compensation are treated separately that the agent receives 5% total from the seller and the buyer?
Below mentions of "the Seller shall pay the broker's commission of 2% to my agent."
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Then also, below mention of "50% of the aggregate rental of the lease and all options as exercised"
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