Normally brokerage fees for the Buyer’s Broker are paid by the Listing Broker, but this is a question I always get when clients are reviewing the promulgated RESIDENTIAL BUYER/TENANT REPRESENTATION AGREEMENT clauses 11.A.1. and 11.B.   These clauses  state: 11.A.1 Commission: The parties agree that Broker will receive a commission calculated as follows: (1) ______ % of the gross sales price if client agrees to purchase property in the market area. 11.B Source of Commission Payment: Broker will seek to obtain payment of the commission specified in Paragraph 11.A first from the seller, landlord, or their agents. If such persons refuse or fail to pay Broker the amount specified, Client will pay Broker the amount specified less any amounts Broker receives from such persons.

By merely signing the agreement you don't owe anything to the Broker, because you have not bought a property yet.

When you do sign an offer to purchase a property, it will state on the contract that the listing Broker will pay for that amount (they are going to receive the commission from the seller). If for any reason they wouldn't agree to sign the contract as stated, the contract wouldn't be valid, and you would not be obligated to a fee because there is still no purchase.

In order to complete the closing, the Title Company or closing agent will use the contract information to complete the transaction, and automatically deduct from the sellers proceeds the amounts required to pay the listing and buyer brokers’ commissions. This insures that you (the buyer) won’t be liable for the commission.

An example where a buyer will be obligated to pay for the fee is when he/she goes into a transaction telling the listing broker that they are not represented, when they actually are. The listing broker will then keep both sides of the brokerage fee. When the buyer broker attempts to collect their fee, they will be told by the seller’s broker that the buyer stated not being represented. Since this is false, the buyer will be obligated to pay that brokerage fee as stated on Paragraph 11.B.