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Paying commission to an agent if you find your own house

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adamjohnson
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Paying commission to an agent if you find your own house  Reply with quote  

I've started looking for a house to purchase in another province. This will be my principal residence. I haven't signed up with an agent yet. I feel that buying directly gives me a bit more bargaining power as there's no purchasing agent involved asking for his/her share of the commission. I've purchased many houses before and I'm quite familiar with the process.

After the negotiating process fell through on the last offer, the selling agent was trying to convince me to use her as my agent. I haven't signed up with her so far but she was very good at highlighting the advantages of using a representative.

My question is: if I were to sign up with a purchasing agent and I ended up buying a house through an "agent-less" system (DuProprio in this instance), could the agent make a legal case that I still owe her commission even though she wasn't involved in the transaction?

For anyone not familiar with DuProprio, it's a real estate advertising system in Quebec that allows you to sell your property without using an agent. You also have the option of listing your property on MLS for an additional fee. It's a great deal from a seller's perspective as they don't have to pay the 4-6% commission. The disadvantage is that agents on the purchasing side tend to stay away from these properties for sale because they're "not part of their system"

Hence my question....if the seller doesn't pay a seller's commission to an agent and I purchase a residence without getting my agent involved, can my agent claim that she's legally entitled to be compensated because I signed a representative agreement?

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Last edited by adamjohnson on Tue Oct 04, 2016 6:47 am; edited 2 times in total
Post Mon Oct 03, 2016 9:37 am
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Publius
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Re: Paying commission to an agent if you find your own house  Reply with quote  

quote:
Originally posted by adamjohnson
I've started looking for a house to purchase in another province. This will be my principal residence. I haven't signed up with an agent yet. I feel that buying directly gives me a bit more bargaining power as there's no purchasing agent involved asking for his/her share of the commission. I've purchased many houses before and I'm quite familiar with the process.

After the negotiating process fell through on the last offer, the selling agent was trying to convince me to use her as my agent. I haven't signed up with her so far but she was very good at highlighting the advantages of using a representative.

My question is: if I were to sign up with a purchasing agent and I ended up buying a house through an "agent-less" system (DuProprio in this instance), could the agent make a legal case that I still owe her commission even though she wasn't involved in the transaction?

For anyone not familiar with DuProprio, it's a real estate advertising system in Quebec that allows you to sell your property without using an agent. You also have the option of listing your property on MLS for an additional fee. It's a great deal from a seller's perspective as they don't have to pay the 4-6% commission. The disadvantage is that agents on the purchasing side tend to stay away from these properties for sale because they're "not part of their system"

Hence my question....if the seller doesn't pay a seller's commission to an agent and I purchase a residence without getting my agent involved, can my agent claim that she's legally entitled to be compensated because I signed a representative agreement?


That entirely depends on the agreement. If it includes language that you will transact through that agent for all transactions of real property for a given period of time, then yes, I would thinks so. The real estate laws and contracts vary from state to state and I imagine event moreso from country to country. So a careful review of the contract is the only way to be sure.
Post Mon Oct 03, 2016 4:16 pm
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