Who Pays the Buyer's Agent in Utah?

The buyer-broker agreement should state either a specific amount or an objectively determinable method of compensation. That is the starting point. If the buyer agrees to pay a certain amount, third-party contributions may reduce what the buyer must bring, but the agreement still controls the brokerage's entitlement.

The Utah REPC contains a section where the seller may agree to contribute a percentage of the purchase price or a dollar amount to the buyer's brokerage. If no amount is entered, the seller has not agreed in that contract to make that contribution.

Any contribution must be negotiated as part of the offer. A seller may accept it, reject it, counter it, or weigh it against the price and other requested concessions.

Compensation should be evaluated as part of the complete economics of the offer. For example, a buyer offering a higher price while requesting a brokerage contribution and closing-cost credit may produce less net money to the seller than a slightly lower offer with fewer concessions.

Buyers should also confirm with their lender whether a proposed structure affects cash-to-close, financing limits, or appraisal treatment.

• The listing agent does not automatically represent the buyer.
• A seller contribution is negotiable, not guaranteed.
• A buyer may still owe money if third-party payments are less than the agreed compensation.
• A brokerage cannot collect more than the compensation agreed to in the buyer-broker agreement.
• Compensation and service quality should be discussed openly rather than hidden until an offer is written.

• Read the compensation paragraph before signing.
• Ask for a dollar example at your likely purchase price.
• Ask whether the agreement requires payment if you buy an off-market, builder, or FSBO property.
• Ask how seller contributions will be requested.
• Confirm whether the agreement contains a minimum fee.
• Understand cancellation and protection-period terms.

The honest answer is not simply 'the seller pays.' The buyer contracts for representation, and the transaction may be structured so that another party contributes toward that cost. Buyers should understand the maximum obligation before they begin touring seriously.

• Which deadline controls this issue?
• What must be delivered in writing?
• What money is at risk if the transaction is canceled?
• Does an addendum change the standard form?
• Is this a real-estate question, or does it require legal, tax, lending, inspection, or engineering advice?