Recently the customs relating to brokerage fees have changed dramatically due to a National lawsuit over broker compensation. The Seller is no longer automatically required to pay the Realtor commission of the buyer’s Realtor. If you are working with Realtor, you may have agreed to compensate your Realtor 0%-3%. In your offer you may request that the Seller pay all or a portion of your Realtor fee. The Seller may or may not agree to pay for your agent leaving you with that obligation. Be sure to discuss this issue with your agent so that any offer you make addresses this obligation according to your wishes.
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In Plain English:
This section confirms:
The request or offer of compensation for the Buyer’s agent. It gives the Buyer the option to make their Offer contingent on the Seller agreeing to pay a commission to the Buyer’s Broker. The compensation may be expressed as a percentage of the purchase price or a flat dollar amount.
This part of the Offer also acknowledges that this does not replace the Massachusetts Agency Disclosure form, which must be signed separately. This is a form that you will have signed with your agent prior to making an offer.
Attorney's Note:
As a real estate attorney in Massachusetts, I always advise Buyers and Sellers to Pay careful attention to this section as the commission can be quite costly. This section also gives the Buyer an opportunity to ensure that their Buyer's Agent is paid—even if the Listing Agent didn’t offer a co-broke commission. If the Offer is contingent on the Seller agreeing to pay the Buyer’s Broker, and the Seller refuses, then the Offer becomes non-binding and can be withdrawn. A strategy to consider if no compensation is offered is to come to an agreement on the sale price and then increase the price with Seller paying the Buyer ‘s Agent’s Realtor commission.
Disclaimer: The information provided in this [video/website] is for general informational purposes only, and does not constitute legal advice. You should not rely on this information as a substitute for professional legal counsel. Consult with a qualified attorney for advice regarding your specific legal situation