How Buyer Agent Compensation Works in Texas | Explained with Real Estate Contracts..
Автор: Koshy Oommen, The Houston Real Estate Agent
Загружено: 2026-03-07
Просмотров: 19
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Are you a buyer or seller in Texas wondering how the buyer’s agent gets paid? In this video, I walk you through the three key contracts that structure compensation.
We start with the Listing Agreement. In Section 5A(1), the seller agrees to pay the listing broker a commission, and in 5A(2), that commission can be shared with the buyer’s broker. Section 5B also addresses cooperating brokers.
Next, we look at the Buyer Representation Agreement. In Section 7A, the buyer agrees to the broker’s fee (a percentage or flat fee). Then, in Section 7C, it says the broker will first seek payment from the seller or their agents.
Finally, we address the One-to-Four Family Residential Contract. In Paragraph 12A(1)(B), the seller may contribute a specific amount or percentage toward the buyer’s broker fee, and in 12A(1)(C), they can contribute to other buyer expenses, like closing costs.
These contracts work together so both buyers and sellers know exactly how agent compensation is handled in a Texas real estate deal.
If this helped, don’t forget to subscribe for more easy explanations of Texas real estate contracts!
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