Hello all,

I have been working with an agent for around 5 months now and I have some concerns that I wanted to bounce off everyone. I am a new investor in real estate and found a local agent to help me find properties and to educate me on the market I am targeting.

My main concerns are these:

1) This agent failed to inform me that I would need to sign a formal Buyer's Agent Agreement (BAA) for her to act as a BA for me. I made it clear from first contact that I wanted a buyer's agent and she said they provide that service but never mentioned an agreement. That means she was essentially representing the seller/listing agent on any properties I inquired about over the 5 months. I was finally informed of this when another agent she works with met me at the second property I checked out.

2) Once I got a BAA from her it includes some questionable content. My two concerns are that if we got to contract on a home and I back out I have to pay whatever her commission would have been on the sale. Another is that she gets a commission on any property I find and purchase even if I found it on my own. Are those normal requirements in typical BAA's?

I just want to make sure things are legit before I proceed with this agent any further. Any advice would be greatly appreciated.

Thanks,

Jim

Jim what part of GA are you investing in? Are you investing in commercial or residential.

The only time there would be a conflict is if she was the listing agent/broker on one of the properties she is showing you.

Dual agency is allowed in the state of Ga(where both parties are represented) however many broker with me included choose not to go that route.

A buyers agency agreement doesn't have to be signed until the offer is presented under Ga law.The whole reason EBA's were created is to show representation for the buyer.

Used to both the seller and buyer thought were represented by the broker.What happened is lawsuits insued and the EBA was created to protect the consumer in GA.

Jim if your worried you owe her a commission on properties she did not show you have a showing list agreement you sign when you look at each property.This is fair and shows procuring cause and that the broker is due a commission if it closes.I would focus less on the commission and more on making a profitable deal.

The backout part is just saying if you perform your inspections and you qualify for a mortgage and all other contingencies are waived then YES you would owe a commission because you would be in breach of performing of the duties as a buyer you outline in the purchase agreement.

Jim I mainly work Cherokee and surrounding counties.If you are SERIOUS and have realistic investing goals then you can e-mail me.Each type of investment will have there own exit strategy.

Do you want to rent these properties and hold long term or do you want to flip them??Land,Commercial,Residential all have to be considered differently.The opportunties available to you will depend on what capital you have to start out with.


No legal advice