Real estate agent trying to SCAM ME or is this legit?

[nabruesion]

What is the name of your state (only U.S. law)? Pennsylvania.

Under the broker's fee section within a real estate agent contract I'm suppose to sign so we would be legally bound I found these.

1. In a purchase transaction with a seller represented by a real estate broker the fee is PER MLS % of the sales price.

What is PER MLS?

2. In a purchase transaction with a seller who is NOT represented by a real estate broker the fee is 3.00 % of the sales price.

3. Broker's Fee in event of a lease transaction is: 1/2 month's rent

Lastly, I'm suppose to be buying a new home directly from builders where there is actual no seller's agent. Just sales and marketing representatives who show you newly constructed homes and people purchase them, who then pays the buyers real estate agent commission? The building company Or the buyer?

Any help would be gladly appreciated.

 

[FlyingRon]

I assume we're talking about a buyer's broker here.

The PER MLS means that they broker will take whatever amount (typically 3%) that the listing broker put in the MLS as the commission share.
Most new home builders will pay a similar commission to buyer's brokers even though they technically don't have brokers on their end (or MLS).
If you aren't looking to lease, you need not worry about the lease terms.

Note the big red flag here is that if you are brought to a deal with a FSBO, **YOU** owe the commission rather than the seller.
Take that into account when you make your offer.

 

[nabruesion]

I assume we're talking about a buyer's broker here.

The PER MLS means that they broker will take whatever amount (typically 3%) that the listing broker put in the MLS as the commission share.
Most new home builders will pay a similar commission to buyer's brokers even though they technically don't have brokers on their end (or MLS).
If you aren't looking to lease, you need not worry about the lease terms.

Note the big red flag here is that if you are brought to a deal with a FSBO, **YOU** owe the commission rather than the seller.
Take that into account when you make your offer.

Thank you so much. I'm assuming then the situation I'm dealing with the builders/building company would be the owners and the commission would have to be paid by me. Again, I really appreciate it.

 

[CLJM]

Per MLS = Per the Multiple Listing Service which is the local listing service for Realtors ( Builder's) to list their listings. It goes into the system to provide information of the homes for sale.

Selling Broker is the Listing Broker for the home.
Buyer's Broker is the representative for the Buyer buying the home.

The Selling Broker (sales representative) has a Listing agreement with the Seller (Builder) which includes a commission to be paid. The Seller (Builder) typically pays the commission to the Selling Broker (sales representative) who then shares that commission with the Buyer's Broker.
ex: MLS: 6 % (3% typically to the Selling Broker & 3% to the Buyer's Broker, which will be paid at closing.

Buying from a Builder: The Biulder's sales representative will be the Selling Broker, and therefore, the commission will be paid by the Seller, which is the builder. If the Buyer also has a Buyer's Broker working for the Buyer, then the Selling Broker will typically pay the Buyer's Broker share of the Commission. (as a split, whatever is listed in the MLS-- 6% = 3% and 3%) IF the Builder's Sales Agreement is asking that the Buyer pay the commission, that is negotiable. If the Buyer does not have a Buyer's Broker, the Seller (Builder) will be paying the stipulated commission to the Selling Broker---the Builder's representative.

If the Buyer has a Buyer's Broker agreement, then that agreement will dictate how the Buyer's Broker gets paid regardless of which home is bought.

FSBO (for sale by owner) Most FSBO's will pay the commission to the Buyer's Broker---again, negotiable---make sure that is written in the Sales Agreement.

I hope I have been helpful.

 

[nabruesion]

Per MLS = Per the Multiple Listing Service which is the local listing service for Realtors ( Builder's) to list their listings. It goes into the system to provide information of the homes for sale.

Selling Broker is the Listing Broker for the home.
Buyer's Broker is the representative for the Buyer buying the home.

The Selling Broker (sales representative) has a Listing agreement with the Seller (Builder) which includes a commission to be paid. The Seller (Builder) typically pays the commission to the Selling Broker (sales representative) who then shares that commission with the Buyer's Broker.
ex: MLS: 6 % (3% typically to the Selling Broker & 3% to the Buyer's Broker, which will be paid at closing.

Buying from a Builder: The Biulder's sales representative will be the Selling Broker, and therefore, the commission will be paid by the Seller, which is the builder. If the Buyer also has a Buyer's Broker working for the Buyer, then the Selling Broker will typically pay the Buyer's Broker share of the Commission. (as a split, whatever is listed in the MLS-- 6% = 3% and 3%) IF the Builder's Sales Agreement is asking that the Buyer pay the commission, that is negotiable. If the Buyer does not have a Buyer's Broker, the Seller (Builder) will be paying the stipulated commission to the Selling Broker---the Builder's representative.

If the Buyer has a Buyer's Broker agreement, then that agreement will dictate how the Buyer's Broker gets paid regardless of which home is bought.

FSBO (for sale by owner) Most FSBO's will pay the commission to the Buyer's Broker---again, negotiable---make sure that is written in the Sales Agreement.

I hope I have been helpful.

This has been ABSOLUTELY FANTASTIC!
All I wanted was clarity on the wording presented and the information you provided is more than enough.
Again, THANK YOU SO MUCH.

 

[nabruesion]

If typically seller pays agent then why buyer's contract states this...

I received a "Buyer's(Tenant)Agent Agreement" contract yesterday
part of it stated this:

2. BROKER'S FEE
(A) No Association of REALTORS has set or recommended the Broker's fee. Buyer and Broker has negotiated the fee Broker will receive for performing real estate services for the Buyer.
(B) Broker's Fee, paid by Buyer to Broker is as follows
*****************************************************

Am I crazy, but if seller is suppose to pay Broker's Fee, unless I the buyer stipulated that I would pay it (which I have not) should not it state it this way
(B) Broker's Fee, paid by Seller to Broker is as follows:

Any help clarifying this would be appreciated.

 

[CLJM]

I am assuming that your "Buyer's (Tenant) Agent Agreement" is the Agreement that YOUR Buyer's Broker is asking you to sign for him/her to represent you as a Buyer. That would be an agreement between you and your representative regardless of the home you buy or the Selling Broker to be dealt with. It is a way for the Buyer's Broker to keep you as his/her client and not seek out other Brokers to represent you.
(ex: a Broker showing you homes for sale and then finds out that you entered into a sales contract with another Broker) In otherwords---it keeps you tied to them financially via a "broker's fee" as your Representative. The Agreement is stated as such to protect the Broker.

If that is what you are referring to, then as I stated yesterday, THAT is negotiable.

Keep in mind that the "Buyer's Agent Agreement" is separate from a Sales Contract.
Buyer's Agent Agreement : (an agreement between the Buyer and the Buyer's Broker) It protects the Broker from you dealing with another Broker.
Sales Contract Agreement : (an agreement between the Buyer and the Seller)

As a Buyer, I would not sign to pay a Broker's fee--- rather the Buyer's broker should receive their "fee" via the commission offered and paid by the Seller. In the Agreement, I would state it as such, so that there is no question reagrding any fees.

Again...I hope I have been helpful.