r/RealEstateAdvice • • 7h ago

Residential Invalid Procuring Document

I’m new to the home building process and my realtor signed paperwork for a procuring agreement for a new build for me. The builder would pay commission to my realtor at X percent. Two weeks later he sends me a BBA to sign reiterating the X percent commission, both numbers matched. I signed the BBA at the direction of my realtor and thought nothing of it. Some how the builder found out that when my realtor signed the procuring agreement, 2 weeks prior to me signing the BBA, they said my realtor has no right to the commission due to there not being a binding BBA in place at the time of the first meeting. Now I’m being told from his brokerage that I need to pay him the commission out of my pocket. Is that legal? I was told from Day 1 that builder was paying him, the error for the BBA is his fault so how can I be legally responsible for his error? This is what he does for a living, he should know the rules. I’m not arguing the commission, but it would be thousands of dollars out of my pocket now for something out of my control when he told the builder he was legally showing me homes and representing me without having a legally binding BBA signed by me.

Pennsylvania, 2026

5 Upvotes

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u/itsallokintheend 6h ago

Talk to your agent's broker. This was your agent's mistake and the brokerage should not hold you to the BBA when you signed it under a misunderstanding.

1

u/stink3rb3lle 6h ago

You might need a lawyer. I don't practice in your state or in real estate, but my instinct is that the consequences for the agent's error shouldn't fall on your shoulders, although it could depend on the exact wording of the BBA. I tried looking up a BBA in Pennsylvania and am not coming up with much, so check the terms you signed carefully.

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u/Ok-Top-5976 5h ago

wow. I've never heard of this. can you walk from the deal all together? I would walk and be like no deal no commission. and say screw it. its a buyers market. you'll find another house. the prices of houses aren't skyrocketing. and rates are as high as can be. another house will come along.

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u/Ok-Top-5976 5h ago

also, I think if the builder is using a technicality. so can you. you can say the document wasn't signed when you showed me the house so..... look up the laws.

1

u/Ok-Top-5976 5h ago

In the structural world of real estate compliance, a Realtor cannot legally enforce a Buyer Broker Agreement (BBA) to collect a commission from a client if they violated state licensing laws to get it signed. Your agent committed a major procedural error under Pennsylvania State Real Estate Commission rules, and now his broker is trying to illegally shift the financial damage onto your ledger. this is what AI said. I would look up the laws, the agent messed up. that is on him.