Contract — Page 2: Commission & Contingencies

📖 3 min read

Section 2 of the Buyer Contract Training course. This lesson walks through page 2 — buyer agent commission & contingencies. Open the RPA PDF below and follow every line reference as you read.

Buyer Agent Commission

• Section 2 — Buyer Agent Commission: must be equal to or less than your previously signed Pre-Showing Buyer Brokerage Agreement (BBA).
• May charge a % OR a flat fee (land deals or specific negotiated terms). Do NOT fill in both.

Get Paid

• If you don’t have a commission on here, and no BBA with an agreed amount prior, you will NOT be PAID.
• Choose your amount, but be mindful of your net and discuss the full terms and amounts with your Buyer.

Appraisal Contingency intro

• Page 2 Line 9: If CASH → N/A. If Loan → 1 or INCL as Pre-approved to offer.
• Read through the Appraisal Contingency with the client so they understand the options.

Appraisal Contingency

• Line 20: suggested 21 days (discuss with a lender).
• Once in escrow, put the expiration date in Google Calendar 2 days prior AND the day of, for reminders to you and your client.
• If the appraisal is delayed, you must extend by addendum before this date or the buyer is waiving the contingency.
• If the appraisal is low, complete negotiations before this date, waive, or cancel.
• 21-day appraisal allows your lender enough time to appraise.
• ZHL provides a FREE appraisal — saves the client roughly $500–$1,000. Appraisals are paid at the beginning of escrow, so verify client has $800–$1,000 on average for appraisal + home inspection.

Loan Contingency

• Have clients read this thoroughly. It is the buyer’s job to perform for the lender and the lender’s to perform for them. The seller has no agreement with the lender — only the buyer.
• Line 26: suggested 25 days. Place the expiration in Google Calendar 2 days prior AND day of.
• Lines 29–30: If buyer does not have FINAL approval (not conditional — FINAL) by this date, get an extension or they must waive or cancel in writing.
• Condos: require a Condo Cert Approval if not on the Approved List for conforming loans (based on occupancy and litigation). Place this language in Additional Terms on Page 9 of 11: “Buyer and Seller agree that if at any time Lender cannot obtain (if FHA put FHA in front) Condo Cert Questionnaire Approval, then Buyer’s Earnest Money to be refunded back to the buyer.”

Other Contingencies

• Line 36: N/A if a loan; 1 or INCL if CASH (Proof of Funds attached to the offer).
• If they need to sell a home, it will most likely need to be in escrow for the offer to be accepted — complete the addendum. Include the Contingent Upon Sale Addendum with the offer.