Many Wilmington, NC, home buyers have found it advantageous to use a realtor to represent them in the home buying process. It is their responsibility to help you find a home that meets your needs, to provide you with facts that will help you determine your decisions and to protect your best interests during negotiation and conclusion. In North Carolina, buyer`s commissions are usually paid by the home seller (with the exception of For Sale By Owners who are not willing to pay commissions). If you decide to use a real estate agent to buy a home, they will ask you to sign a purchasing agency agreement that describes their role and services. This document is important because it ensures that you and the agent have a clear understanding of what they can expect from each other. There are two types of buyer agency – exclusive and non-exclusive. The BRNE compensates the broker for the services provided on behalf of the buyer. The broker is only paid if that broker presents the property purchased to the buyer or acts in another way on behalf of the buyer. It is not revocable and has a definitive start and termination date to include in the contract. In addition, there is a mediation and optional arbitration paragraph, as well as a paragraph of legal fees. It is also non-exclusive that offers flexibility to a potential buyer and deters any ruthless action by the broker. This is the most common buyer brokerage agreement between home buyers and brokers.
This agreement describes the broker`s obligations, broker-agent relationship and buyer`s responsibilities. What characterizes this contract is that the buyer cannot keep more than one broker to help him. It puts the amount of commission to be paid to the broker that is due, even if the buyer finds the house itself or another broker does so. But if another party pays the commission to the real estate agent, the buyer is not obliged. To avoid problems, buyers and brokers enter into a contract to define the legal relationship, a contract called buyer-broker. Buyer brokerage contracts explain the obligations and responsibilities of the parties and specify which services the broker will provide. There are several types of real estate brokerage agreements that represent the type of relationship between buyer and broker. These contracts can usually be provided by the broker in pre-printed “Fill-in-the-blank” forms, tailored to the laws of each state. An agreement on the exclusive purchasing agency does not allow you to hire more than one broker to represent you in the transaction. If the commission is not to be paid by another party (as mentioned above, usually the seller), you are responsible for paying the commission to your agent. Exclusive agreements generally last from six months to a year and cover a general area. As a buyer, you must present your agencies that you are considering.
The commission is paid, even if you have been introduced into the subject at home, because the agent will still work to protect your interests. If you enter into a home purchase agreement that the agent has introduced to you within a number of days of the expiry of the agreement, you must pay that agent`s commission. Although the agreement on the exclusive buyer agency is more restrictive than the non-exclusive agreement, it offers the greatest bargaining room on your behalf. This form is similar to the non-exclusive form, with the exception of one essential distinction: the buyer has agreed to cooperate exclusively with the broker/agent.