Can a California realtor charge a first timer buyer a fee for canceling their contract?

Posted by admin on January 24th, 2010 and filed under realtor | 4 Comments »

If yes, what is a customary fee? I heard a lot about realtor fee’s and need to know about this question, before I get started.

No, in CA the realtor only gets their fee at after they close a sale, never before.

However, if you start a contract with one agent you can not switch. This one would be entitled to their commission still, and will get it. You would pay a second one out of pocket if you were to involve another agent.

Also keep in mind that your contract isn’t really with the agent, they work for a broker, the real holder of the contract.

If at any time you are not happy with your agent you can request he replace them with a different agent. You agreement is not effected in any way.

4 Responses

  1. ibu guru Says:

    Almost any contract for anything will stipulate penalties for cancelling. Once you sign, you are committed. For certain types of contracts (purchases) you might be eligible for a 3-day (72-hour) "cooling off period" where a contract or purchase can be cancelled without penalty, but even if eligible for such a provision in law, once that period expires, you pay.

    READ & UNDERSTAND your contract before you sign it.

    First-time homebuyers have no special waivers when it comes to signing a contract. No excuses. Be sure you know what you are doing before you do it.
    References :

  2. suncstco Says:

    Hi

    Any fees that you have agreed to pay, must be written in your contract. If you are unsure, call the Department of Real Estate and the agents broker. I am a Ca. Realtor and if my client backs out, oh well on me!. I have never charged a buyer. But if you were in escrow and backed out, you may lose your deposit. It really has nothing to do with being a first time buyer. Read your contract again.
    Good Luck
    References :

  3. Expert Realtor Says:

    Depending on how far the transaction is gone, you can possibly owe the agent their entire commission.

    Read your contract.
    References :

  4. Landlord Says:

    No, in CA the realtor only gets their fee at after they close a sale, never before.

    However, if you start a contract with one agent you can not switch. This one would be entitled to their commission still, and will get it. You would pay a second one out of pocket if you were to involve another agent.

    Also keep in mind that your contract isn’t really with the agent, they work for a broker, the real holder of the contract.

    If at any time you are not happy with your agent you can request he replace them with a different agent. You agreement is not effected in any way.
    References :

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