March 14th, 2022 at 2:05 pm
Answer: Probably the best thing for you to do to help ensure that you will get paid is to have your buyers sign an exclusive buyer-broker agreement (C.A.R. Form BRE). Get that signed before you even embark on your farming campaign.
In other situations, it might be a little difficult to get your buyers to sign a buyer-broker agreement. But in this situation, it should be relatively easy to get your buyers to sign. After all, farming campaigns usually involve a massive and time-consuming undertaking on your part. Your buyers should understand that you are unwilling to do that unless they promise to pay you.
As a helpful tip, you can show your buyers that paragraph 3B of the BRE says that, if you get paid by the seller or another source, that compensation you get will be deducted from whatever the buyers may owe you. So if, for example, the buyers agree to pay you 2.5% in the BRE, and you later get the seller to pay you 2.5% under an SP, the buyers will owe you nothing.
Stay Tuned Next Week: Transactions involving an SP have become more prevalent in the current housing market, given the low listing inventory and the strong demand from prospective buyers. Stay tuned next week for some more ins and outs on using an SP.
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