What is a buyer’s responsibility for a broker’s fee after an exclusive buyer-broker agreement has expired?
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What is a buyer’s responsibility for a broker’s fee after an exclusive buyer-broker agreement has expired?
My exclusive buyer-broker agreement and agency disclosure expired last month. I am now in the 2 month “protection period”. During the initial term of this contract I put a $1,000 lot holding fee down for a lot where I wanted to build. If I recall back my lot holding fee and select a different lot (not discussed with my realtor) in the same subdivision with the same builder, am I cleared from the protection period or am I still liable for the broker fee?
Asked on December 13, 2011 under Real Estate Law, Utah
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
In order to determine whether or not you are obligated to pay a real estate commission to the brokerage that you signed an agreement for to represent you in the purchas eof real property, you need to carefully read its terms and conditions in that the issue of entitlement to real estate commissions would be stated in the document that you signed.
Most agreements require commissions to be paid if the buyer closes escrow on a parcel viewed during the period of the representation even if the exclusive areement has expired. I suggest that you contact the broker who had the listing to discuss the situation to confirm whether or not commissions are expected in the event you close scrow on another parcel. Follow up with the telephone conversation with a written letter confirming what was said. Keep a copy of the letter for future need and reference.
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