Zillow Advice: Buying Process - Exclusive buyer agreement and open houses http://www.zillow.com/advice-thread/Exclusive-buyer-agreement-and-open-houses/454296/ Zillow Advice | Zillow Real Estate Thank you for all the comments. ... http://www.zillow.com/advice-thread/Exclusive-buyer-agreement-and-open-houses/454296/ Thank you for all the comments. I had no idea this was such a controversial question! It was just something that I started thinking about after the fact. The buyers' agent did show the house and write the contract. Tue, 07 Aug 2012 10:28:00 GMT http://www.zillow.com/advice-thread/Exclusive-buyer-agreement-and-open-houses/454296/ 2012-08-07T10:28:00Z since procuring cause seems ... http://www.zillow.com/advice-thread/Exclusive-buyer-agreement-and-open-houses/454296/ since procuring cause seems to be so confusing for so many agents....here is a definition from the NAR<br/><br/>"Procuring cause is a complex issue, and no one action ensures that you're entitled to compensation after a sale.<br/> Appendix II to Part 10 of the Code of Ethics and Arbitration Manual gives a basic definition of procuring cause as "<strong>the uninterrupted series of causal events which results in the successful transaction</strong>." <strong>Neither showing the property nor having a buyer's representation agreement with the purchaser automatically demonstrates procuring cause."</strong> <br/><br/> Tue, 07 Aug 2012 04:46:00 GMT http://www.zillow.com/advice-thread/Exclusive-buyer-agreement-and-open-houses/454296/ 2012-08-07T04:46:00Z When you sign an Exclusive ... http://www.zillow.com/advice-thread/Exclusive-buyer-agreement-and-open-houses/454296/ <p>When you sign an Exclusive Buyer's Agency, you are agreeing that that agent will represent you (write the offer) when you purchase a property. In that contract may be a section on the agent's commission. It often says something to the effect that the agents company&nbsp;receives a minimum of, say, 3%(or whatever)&nbsp;of the purchase price when you purchase a property within the timeframe stipulated in the contract&nbsp;.<br/>When someone lists a&nbsp;property for sale, the contract will stipulate the amount the seller will pay towards commissions. Let's say that amount is 6%.&nbsp;&nbsp;The listing agent will put the listing in the MLS and probably offer 3% to any agent who brings the buyer to them. When the sale closes, The listing agents company receives 3% and the buyers agents company gets 3%. The respective companies and agents&nbsp;then split this commission amongst themselves&nbsp;in pre-agreed percentages.&nbsp;<br/><br/>Now, let's say that a seller only agreed to 5% with their listing agent and 2.5% is offered to the buyer's agent in the MLS. Now, if the buyer with the Buyer's Exclusive contract bought that home, they would need to&nbsp;pay .5%&nbsp;of purchase price&nbsp;to make the 3% for their agents company.<br/><br/>When an agent holds an open house, it could be their listing or another agent's listing. Open house is a popular way for agents to find clients. It is rare that the person coming through the door buys that particular property. For this reason, it is important when you go to an open house to tell the agent that you have an Exclusive&nbsp;Buyer's Agent. If you want to buy the open house&nbsp;and&nbsp;write an offer with the agent at the open house, you could very well owe your Exclusive Buyer's Agent 3% (or whatever agreed to) of the purchase price to fulfill your contractual obligations with them.<br/><br/>Whatever agent writes the purchase contract that you sign is the one who gets the commission.</p> Tue, 07 Aug 2012 04:46:00 GMT http://www.zillow.com/advice-thread/Exclusive-buyer-agreement-and-open-houses/454296/ 2012-08-07T04:46:00Z Hpvanc a buyer would only ... http://www.zillow.com/advice-thread/Exclusive-buyer-agreement-and-open-houses/454296/ Hpvanc a buyer would only be liable for a commission if they signed a buyers agreement stating that they would compensate the buyers agent if the agent was not compensated accordingly. If a buyer was denied a commission, it would then become a procuring cause case. If the buyers agent lost the procuring cause, the buyer is not responsible for paying their commission unless they agreed to pay it as previously stated. Tue, 07 Aug 2012 04:38:00 GMT http://www.zillow.com/advice-thread/Exclusive-buyer-agreement-and-open-houses/454296/ 2012-08-07T04:38:00Z The buyer may be on the hook ... http://www.zillow.com/advice-thread/Exclusive-buyer-agreement-and-open-houses/454296/ The buyer may be on the hook for his/her buyers agent commission if the listing agent claims they or the agent that hosted the open house on their behalf is procuring cause keeping the entire commission or paying the agent that hosted the open house.&nbsp; If the listing agent doesn't pay the "buyers" agent the "buyers" agent agreement may leave the buyer on the hook for the commission.<br/><br/>Cindy pointed out an example where "buyers" agent did not get the commission in this exact situation, Blub implied the buyer and agent need to dot all of their i's and cross their t's with their "buyers" agent agreement and intentions, and Debbie intimated that the "buyers" agent needs to show it to the buyer after the house to try to establish the procuring cause of the buyers agent.<br/><br/>Bottom line, it is a delicate situation because "buyers" agents don't really work for the buyer (the reason "buyers" agents are usually free or at no cost to buyers).&nbsp; I know it is not the original question, but the answer no matter how you spin it is indicative of the broken system. Tue, 07 Aug 2012 04:18:00 GMT http://www.zillow.com/advice-thread/Exclusive-buyer-agreement-and-open-houses/454296/ 2012-08-07T04:18:00Z Open Houses are public events ... http://www.zillow.com/advice-thread/Exclusive-buyer-agreement-and-open-houses/454296/ Open Houses are public events and your attendance does not obligate you to work witht the hosting agent, who may or may not be the listing agent. &nbsp;I do agree with Debbie as well ....would be good for you to visit the home with your agent as an additional step. Tue, 07 Aug 2012 03:58:00 GMT http://www.zillow.com/advice-thread/Exclusive-buyer-agreement-and-open-houses/454296/ 2012-08-07T03:58:00Z I would agree with Debbie ... http://www.zillow.com/advice-thread/Exclusive-buyer-agreement-and-open-houses/454296/ I would agree with Debbie on this. Based on the original post, if the buyers agreement is with the agent that wrote the offer, then most likely that agent will receive the commission. Just an FYI hpvanc, the buyer is not on the hook for anything. The commission will come from the listing agent no matter who gets it. Tue, 07 Aug 2012 03:44:00 GMT http://www.zillow.com/advice-thread/Exclusive-buyer-agreement-and-open-houses/454296/ 2012-08-07T03:44:00Z psHpvanc.......huh??.........your ... http://www.zillow.com/advice-thread/Exclusive-buyer-agreement-and-open-houses/454296/ ps<br/>Hpvanc.......huh??.........your answer only served to confuse me more (and I'm an agent)..........rather than clarifying anything!<br/><br/>User - let's keep it simple........you went to an open house......another agent then &nbsp;wrote up&nbsp;your offer...right?<br/><br/>well......the open house agent is not entitled to anything<br/>(it would be prudent, however, if your agent&nbsp;took the time to show&nbsp;you the home prior to presenting your offer). Tue, 07 Aug 2012 03:25:00 GMT http://www.zillow.com/advice-thread/Exclusive-buyer-agreement-and-open-houses/454296/ 2012-08-07T03:25:00Z Sitting an open house is ... http://www.zillow.com/advice-thread/Exclusive-buyer-agreement-and-open-houses/454296/ Sitting an open house is not the same as "showing" the property. In most cases its considered a "ministerial act" done as a benefit for the seller. If the agent sitting the open house wants to get credit for the sale, then they better get their buyers agreement in order and make it very clear to the potential buyer what their intentions are at the time of the open house. Tue, 07 Aug 2012 03:18:00 GMT http://www.zillow.com/advice-thread/Exclusive-buyer-agreement-and-open-houses/454296/ 2012-08-07T03:18:00Z In PA, the Realtor that first ... http://www.zillow.com/advice-thread/Exclusive-buyer-agreement-and-open-houses/454296/ In <em>PA, the Realtor that first shows you the house typically is entitled to the commission as the person with "procurring cause</em>".<br/><br/>as an aside, and as a point of information -&nbsp;- I just took (online) &nbsp;the NAR mandated (every 4 yrs) Ethics course put out by NAR.....and it specifically states that&nbsp;simply showing a home does NOT mean there is a case of procuring cause and does not mean an agent is automatically entitled to a commission.<br/><br/>There are other variables that factor into a case for &nbsp;"procuring cause".......<br/><br/><br/>(Mack - the listing agent didn't write up the offer - another agent did) Tue, 07 Aug 2012 03:07:00 GMT http://www.zillow.com/advice-thread/Exclusive-buyer-agreement-and-open-houses/454296/ 2012-08-07T03:07:00Z