4 ways to protect your commission when a client buys new construction
12/29/2014 | Author: Editorial Staff
If your clients are among the 30% of Texas homebuyers looking for new construction, you can take a few steps to ensure they get the home they want and you get your earned commission.
Pat Strong, a Texas REALTORS® University instructor who teaches the “New-Home Construction and Buyer Representation” class, offers these suggestions.
Find out which contracts they use. Does the builder use contracts drafted by their own attorneys, or are they represented by a Texas REALTOR® who uses TAR and TREC forms? These forms have protections for buyers and buyer's agents that other forms don’t have.
Protect yourself with this form. Have them sign the Registration Agreement Between Broker and Owner (TAR 2401) and ask about what happens if the buyer comes back without you.
Register with the builder. Make sure the builder has you listed in his system as representing your client for an amount of time. Always accompany your client on the initial visit so you can learn about the builder’s registration process.
Remember MLS rules. Builders who act as listing brokers may list model homes in the MLS, but you may not be entitled to a commission if your client chooses a home that’s not listed in the MLS. Having a written agreement with the builder can you help avoid this situation.
Read more tips in “7 ways to have smoother transactions with builders” in the December 2014 issue of Texas REALTOR® magazine.
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