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Can a real estate agent charge an upfront fee and get a commission also on just buying a house?

  • August 18 2012 - Sterling Heights
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Answers (4)

Some agents will write a buyers representation agreement that asks for an up front fee. This ensures the agent is paid if the buyer opts not to buy. Any up front fee should be treated as a deposit which would be deducted from the agents commission at the close of sale.

Personally I don't work this way, but I know of agents who use this business model. I get paid when someone either buys or sells.
  • August 18 2012
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Thank you for your answers.  I know an elderly couple in MI who are buying a house, not selling, and the real estate agent asked for almost 2000.00 upfront and is also getting a commission.  I believe this is wrong and think that they are just taking advantage of the elderly.  The couple signed papers which I'm sure outlined this arrangement.  I just wished they would have asked for some help from family or friends first. 

  • August 18 2012
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Typically, No... where a commission is involved.  The caveat is "What" are they charging you for?  What type of transaction?  What type of service are they providing?  This may be a business expense charge of some type. 

All states require licensing and there are laws in place to protect the consumer.  You may search your state's website,  Business & Industry,  real estate commission or division rules or laws. 

I can only speak for Nevada which has very strict laws governing every real estate professional and the transactions.
  • August 18 2012
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All fees and commisions are negotiable.  If you don't like one agents compensation structure,  you are free to find another agent.

Best of luck in your search for a home.
  • August 18 2012
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