I am in the process of buying the home we rent from my landlord. He had offered to finace the purchase himself with a 7% interest rate, no down payment, and $3000 closing fees. We decided to have bank finance us with a 5.25% rate and our closing cost and down payment will be around $6000. I told the landlord that we have decided to have the bank finance us instead without letting him know about the interest rate and down payment and closing cost. The landlord said that we still will have to pay the $3000. He said that this is his commission. The landlord is not our real estate agent. We don't even have a real estate agent. So, why should we pay him $3000 for commission? The landlord had us to sign a form that list his real estate company that he owns as a dual agent. Does this have something to do with the $3000 that he wants us to pay? Also, is this a conflick of interest by the landlord (which is the seller) having his real estate company listed as the dual agent? Please explain to me the role of a dual agent. Please try to answer my questions asap because we would like to close on the purchase soon. Thanks.

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   July 12, 2010

These kinds of situations are exactly way the agency need to be disclosed. Get yourself an agent to represent your interests. If the landlord gives you a problem then tell him your agent found a nicer home down the street.