Location: Texas.
I'm looking at real estate, and due to recent rulings, everyone must sign a buyer's agreement. I am shopping for my aging parents. I am the trustee of their living trust, which will be buying the home.
The clause of the contract I was presented says
Not later than 10 days after this agreement ends, Broker may send Client written notice identifying each Property called to Client's attention during the Term of this agreement. If Client or a Related Party agrees to acquire a Property identified in the notice during the Protection Period, Client will pay Broker, upon Closing, the amount Broker would have been entitled to receive if this agreement were still in effect.
With 'related parties' being explicitly defined as
Related Party" means: any assignee of Client; any spouse, domestic partner, family member, or relation of Client; any officer, director, shareholder, partner, or member of Client; any entity directly or indirectly owned or controlled by Client, in whole or in part; any entity that directly or indirectly owns or controls Client, in whole or in part; and any trust for which Client is a trustee, settlor, grantor, or beneficiary.
I asked my agent directly, "Does this mean if my parents buy the trust and I sign for it as the trustee (or, fuck, even if they buy it themselves), will I be liable for payment?" My agent said, "No, this contract is only between you and me."
My interpretation is that it's pretty fucking obvious that if my parents or I, as trustee of my parents' trust, buy the home during the period I am liable. Not them – me.
Is my buyers agent lying to me about the protection provision of their agreement?
byu/LuxPerExperia inRealEstate
Posted by LuxPerExperia
6 Comments
Without diving into the details, what are the odds you (or your parents) buy the house(s) that this agent showed you after your agreement with them ends? Are you not satisfied with your agent?
It’s just meant for you to not try and cut out the agent. If they show you a property then they are entitled to their fee if you purchase that property.
Some shady people try to cut their agent out after they’ve showed them a property.
Standard in just about every buyer broker agreement I’ve seen.
The language is simply written to prevent someone from working with an agent and then structuring the purchase through another party to bypass the agreed compensation.
A practical question,… If you are the trustee and there’s no intention of trying to avoid paying for a service you’ve agreed to, why is the clause itself a concern?
the agent doesn’t know what they’re talking about.
that clause is specifically to include a signed Buyer having “a different entity” buy a property to try and avoid the Agent being paid the compensation they earned.
They’re forcing you to hire them temporarily.
The question you asked in quotes doesn’t even mention the house, so if the agent answered that exact question “no” they would be correct.