Contracts & Comissions

A Scripted Freelance Writer Writing Sample

Contracts and Commissions

Contracts and Commissions don't have to be the dirty words we have made them out to be. While any contract can be intimidating because it's legally binding and full of long and sometimes complicated language, signing a contract with your chosen REALTOR® protects both of you— whether you are a buyer or seller.

First and foremost, that contract creates a client relationship between you and your REALTOR,® which binds them to represent your best interests and allows them to act on your behalf (so long as it's legal). Once you sign the contract, your chosen REALTOR® will owe fiduciary duties to you (contact me if you want more information), which is just another way of stating they are looking out for you, your property wants and needs, as well as your bottom line. It protects both of you because you will be provided with someone committed to delivering professional services in an ethical manner who is there to make sure you are represented in your real estate transaction and it protects your REALTOR's® time.

The Buyer's Contract

Because the REALTOR® will devote such time and provide various services to you, including negotiating offers on behalf of the buyer and solve any potential problems that may arise, the contract protects him or her by requiring the buyer to work exclusively with that agent. In other words, if you choose to put an offer in on a property with someone else or on your own, you may still owe the contracted agent a commission based on the sale price of that particular home. However, this only poses a problem for the buyer should they choose not to have their contracted REALTOR® write the offer.

Otherwise, the services received are at no cost to you, with the exception of a small administration fee sometimes charged by certain brokers, as is the case with Edina Realty. That's right, you as a buyer do not pay your REALTOR® a commission. Not one cent. Any administration fee charged is paid directly to the broker, is related to paperwork generated and secure file storage. And, this fee is only payable upon closing of a property purchased. Exclusive professional representation to ease the process so you can focus on the fun and excitement of house hunting without a commission is another reason you will want to hire a REALTOR®. And, with no commission to pay, you've got nothing to lose. Now, there is one caveat—some agents do charge other fees or retainers depending on the type of representation. However, with exclusive representation this is not typical.

The Seller's Contract

Similarly, the seller's contract protects both you and your REALTOR® by creating a client relationship and allowing him or her to act on your behalf, represent your best interests, market your property, review and negotiate offers, as well as solve any potential problems that may arise. They also owe you fiduciary duties and they can often obtain a higher selling price for you than going at it alone. As a seller, however, in additional to a nominal administration fee for document generation and storage, there will be a commission. Keep in mind, if your property does not sell the services and marketing (paid directly out of the agent's own pocket) have been provided at no cost to you and no administration fee would be due. Often, as statistics have shown, a seller with a REALTOR®, is more likely to receive a higher percentage of their asking price—just another reason you will want to hire a REALTOR® .

Jan W
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Since 2004, Jan has written content in a variety of contexts, including web and social media content, blogs, reviews, and screenplays. Jan was the Editor for Citations, which is a monthly newsletter published electronically to a large audience of legal professionals. She has also edited website content for a law firm, a realtor, a local band, Werner Elements and InstaKyle, and created, enhanced and manipulated images for another attorney’s website and his choir-related newsletter. Additionally, she also wrote a persuasive essay on behalf of an attorney who nominated her for the Outstanding Paralegal of the Year Award, which she ultimately received in 2014. Jan holds an A.S. in paralegal studies, a B.A. in philosophy, and will complete an M.F.A. in creative writing in September 2016. She also won two scholarship awards for her essays ...
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