Can a home builder decline to add buyer agent to the purchase agreement

Status: Open
Apr 30, 2018 Views30,463 Answer a Question

We are trying to build a home with a nationally reputed home builder. We went to the community and filled a registration card with my name and telephone number. The registration card did not have any place where I can mention my agent details. The front desk lady or the sales manager never asked me if I have an agent.

After many visits and discussions we are ready to move forward. I gave my agent details to represent me on the contract.

The sales manager is saying he cannot add my agent to the purchase agreement.

Can a home builder decline to add buyer agent to represent the buyer saying why do we need to pay him if he was not present on your first visit to the community?

Asked by
Consumer
Categories:
Home Builders
About 3 years ago
Most builders have a policy on how an agent can earn commission and represent a client. I typically advise my clients not to fill out anything if they happen upon a model home, for that very reason. I also prefer to go with them if they are actively searching for a home to build. The trouble can happen when clients are simply looking, with no interest in moving forward, and return later. Some builders will hold the position that the agent wasn’t with the client the first time they entered the model home. It’s a very unfortunate situation because most clients haven’t gained the experience of the building process and are best served having an advocate who works for them. The sales person works for the builder. I’d recommend speaking with the sales persons manager and working my way up the ladder with the corporate office. Best of luck!
About 4 years ago
The buyer agent must find out about their policy first. Some builders allow buyer agents to come out and tour with their clients. Buyer agents must fill out the guest card for their new buyers. Some builders ask the buyer agent for a business card for the buyer file. Some agents wait weeks after the buyer has signed the builders agreement. Most builders will not pay the buyers agent at this point.

Thanks

Anthony Taylor Realty
About 4 years ago
Home Builders are a intricate part of the world of Real Estate to include Houston Real Estate. I have come across some great new home builder sales representatives. Finding the right home as well as the right home builder can be a task and finding a fit for a salesperson that is representative of the home builder can also require a little work. Real Estate agents are available to guide a buyer through such a new home buying transaction. In a situation where a buyer has taken their time and effort to select a realtor and notified the home builders' salesperson of this selection, it is unfortunate that the home builder's salesperson doesn't choose to honor these wishes at the time the buyer is ready to select their house via the valuable information that the real estate agent has provided to the buyer. As a buyer, It is always best to consult your realtor in the event that there are any properties that you locate or may be interested in outside of showings with your realtor, this way your knowledgeable realtor can try to make all the necessary steps prior to you visiting a new home, completing a guest registration card and signing on a contract. It is my hope that all buyers find a great agent, and a great new home builder in an effort to obtain the home of their dreams.
About 5 years ago
Yes they can. However, a builder will want a good relationship with a real estate agent and would not necessarily bite off the hand that feeds. It is good to advise your client that if they decide to look at new homes make sure the builder is aware that they have a real estate agent. The realtor needs to touch base with the salesperson and stay in touch as well and visit the site. Real estate agents can negotiate many items for the buyer that buyers may be unaware of. There should be a wholesome partnership between Buyer, Agent and New Home Salesperson. If you need help please do not hesitate to call me at 713-550-4670
source:
https://www.zillow.com/blog/buyers-agent-new-construction-210530/
About 5 years ago
Have you already signed contract with builder? If not, you can put a condition to use your agent before you sign it. Any sales person (unless its in their company policy) will not want to lose your business over it. Does your realtor have signed buyers representation from you? If yes, that can help too. Good luck
About 5 years ago
Once a contract is signed without your agent's information, Builder can deny the agent's name post the contract.
Your best bet is to see if sales manager can help you terminate the current contract and ask them to re write the contract if they have shortages of sale.
About 5 years ago
It depends on the builder's policy but the builder does not have any obligation to pay a buyer's agent that was not with the buyer on the initial visit. USUALLY, reputable builders will be happy to add an agent if the agent calls ahead. Most builders want to maintain a great relationship with the Realtor Community and would never want to stiff a Realtor that is legitimately representing a buyer but if your agent was not there to represent you, you had multiple meetings negotiating with the builder and you didn't mention having an agent, it's EXTREMELY unlikely that the builder will think that the Realtor earned a commission and add them. The Realtor is being paid to bring you there and to represent you during negotiations. I do hope everything is working out well with the building of your new home!
About 6 years ago
Depends on the builder. Most builders have registration cards for when you walk in to visit the sales office. If you don’t put down that you have a realtor on the first visit they aren’t obligated to honor it and some even have signs posted stating such. Just know that builders operate according to their corporate policies and have their own contracts. Having a realtor go over the contract with you and remember, the builder sales rep works for the builder not you...get a realtor before you go! Good luck!
About 6 years ago
Every builder maintains their own company policies regarding the procedures for Realtors to "register" their clients with each model home in communities a Realtor's clients are interested in. When I represent families interested in purchasing a home from a home builder I either phone each builder that is of interest to my clients and register them by phone, or I'll visit each model home and register my client with each builder. I comply with each builder's registration procedures and policies and sign the registration paperwork. All this is done AHEAD of my clients visiting any model homes; either visiting models by appointment accompanied by me, or on their own. I have also instructed my clients to tell the sales representative at any model home they visit that they are working with me, and to provide my name to the sales rep. at the first handshake with that sales rep. That way, later on, when they are ready to seriously negotiate the terms of their purchase I can be their advocate and help them achieve the best terms for their purchase. Your post indicated that you visited the builder many times and discussed purchasing terms without any mention that you want to have your Realtor represent you until the end when you wanted to move forward on the terms that you liked. Well, at that point it is too late to involve a Realtor. You can pay a Realtor yourself to give you advice during the building process, but the builder will not discuss the transaction with a Realtor who is not named on the contract. Nor will the builder add a Realtor to the transaction contract and pay that Realtor a brokerage fee if they were not present from the beginning representing your interests. If all consumers would simply say to a builder's rep at the front door that they "are not purchasing without the representation of a Realtor" that's all it would take. Because at that mention the model home rep will ask for the name, and will offer to email your Realtor the Registration Form.
Disclaimer: Answers provided are just opinions and should not be accepted as advice.
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