Case Study: Buyer Representation
1. Exclusive Buyer Agent Agreement
2. Buyer’s Breach to the agreement (Offered/Accepted by other agent)
3. What can you do?
4. What can the company can do for you?
5. Possible Consequences
1. Excusive Buyer Agreement
1. Specify Area (Single house, Town, County, State)
2. Specify Buyer commission amount (Other stipulations)
3. Specify period/term
4. When do you need to initiate the agreement
Case: * Residential buyer case in Atlanta, GA
* Term:6/1/25 – 12/31/25
* No area specification of area in GA
* Buyer directs to Broker to seek to get Seller or Seller’s Broker to pay all or a portion of Broker’s compensation
* No Buyer commission specified (blank)
2. Buyer’s Breach to the agreement
1. Toward the middle of Oct, 2025, Buyer contacted the other agent without notifying the signed agent.
– What happened?
– What is the reason of the client’s action?
2. The other agent offered for the house in Alpharetta, GA that the signed agent had a showing before, and the offer was accepted.
(The sale contract is fully bounded in 3 days)
3. What can you do?
1. Ignore that client, and move on. ( do not want to waste my/broker’s time : it is not worth it)
2. Can talk to the other agent on remediation/negotiation.
3. Can talk to the broker of that company.
4. Report it to company’s broker
4. What can the company do for you?
1. Communicate with that violated company( P Realty), explaining the violation and the consequence.
2. Also negotiate the commission at the closing. ( In this case, we claimed 50/50)
3. Depending on the result, be ready to file the complaining to the local Board to discipline that violated broker/agent and commission adjustment.
5. Possible consequences?
1. The violated broker doesn’t cooperate and proceed their own way -> Filling complaint to the local Board
2. The violated broker does cooperate and share the commission with 50/50. ( In this case, that broker(Sally K) was cooperative and apological, and agreed to pay the commission(50%))
3. Unexpected result: the buyer got scared and cancelled the contract with possible penalty because of bounded contract. And he asked the cancellation of the “exclusive buyer brokerage engagement agreement” signed previously. (That agreement was cancelled on 10/29/2025)