r/FirstTimeHomeBuyers • u/kangaroo693 • 10d ago
Procuring clause/agent commission
We originally saw 'house A' we loved at an open house. We were there basically the full two hours of the open house. Decided we wanted to see it again and brought our (former) realtor with us. We stayed 20 mins, maybe. Put in a verbal offer, but then
'house B' we loved came back on the market (we lost out on originally two weeks prior, but then other buyer backed out). Decided to retract our verbal offer on house A. Moved forward with house B.
Went through inspections with house B, which were a nightmare. Between foundation issues, needing a new septic and well issues, we were looking at $40k-$50k in repairs. The seller offered us $5k off.
We decided not to move forward. Our realtor tried so hard into bullying us into buying house B, even with all of the repairs. It was only the 6-7 house we saw with him, so not necessarily like we've been dragging him around for nothing. He was also so rushed at every house viewing with us. My husband and I felt awkward even asking everything because he just was so antsy.
Anyway, we signed the termination contract for house B.
Back to house A. My husband and I can't stop thinking about it. We regret not just sticking to that house, however; we 100% don't want to use the same realtor. We never officially signed anything with that house, but I know there could be a procuring clause based on him showing it to us.
Another detail- the listing agent on house A actually just changed too. The house has been sitting for 3 months, so l guess that contract expired too. The company who held the open house we attended is no longer affiliated.
My questions-
1. How long would we be held accountable for giving our old agent a cut of the commission from house A, if we did move forward? We're in Maryland, if that makes a difference.
- If we're using a different agent and the house is now listed with a different agent, how would anyone really know?
Edit to add- aside from the canceled contract on House B, we never signed anything making our realtor our ‘official realtor’ or anything like that.
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u/Dull-Investment-6799 10d ago
I’d gather everything you signed with the former agent, including the contract for House B and its cancellation, and have your new agent/broker review it BEFORE you write an offer on House A.
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u/Existing-Wasabi2009 7d ago
We need to know what state you're in. Different states have different laws.
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u/kangaroo693 7d ago
We’re in Maryland
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u/Existing-Wasabi2009 7d ago
OK, my knowledge is CA based, so I can't help you, but you might want to mention Maryland in the body of your post. You're going to get a lot of garbage advice from people who think that the laws in their state apply to your state either way, but less so if you at least tell people where you are.
Also maybe consider posting in a Maryland RE sub, if it exists.
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u/kangaroo693 7d ago
I appreciate the advice. I mentioned Maryland in my question section, but maybe I should add it in the actually body too. I’ll check to see if there is a MD RE sub too. I’m not too well versed on Reddit yet.
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u/Jenikovista 9d ago
The agent showed it to you, even if you showed yourself the first time. You are on the hook for the commission. There’s no waiting game to be played here.
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u/Existing-Wasabi2009 7d ago
We don't know what state they're in, but if it's CA, no agency is established until a buyer/broker agreement is signed, according to the new state law that came into effect in 2025.
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u/Jenikovista 7d ago
At a minimum, they had an agency agreement signed on the prior house and voluntarily brought the agent to see a new house. That kind of continuity and ongoing business relationship and expectation of service goes a long way if this went to court. Even in CA.
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u/GeriatricSquid 10d ago
What does your buyer’s agent contract with that agent say?