If I already spoke to a New Jersey homeowner about buying his home (it
was up for sale by owner) and he subsequently signed with an agent, is
it a.lawful and b.ethical for the agent to charge the fee (buyer's and
seller's) from the price paid?

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Clarification of Question by mordechai-ga on 04 Jan 2005 09:52 PST

I have not yet bought the home in question and the agent insists that
I must go through him.

My guess is the agent can collect his fee. If you had made an offer in
writing, and the date of your offer can be proven within reasonable
certainty, and the seller made a writen response to your offer, you
might be able to avoid the fee. If you have nothing in writing and the
seller did not note your interest in the property at the time he
listed with the realtor, Your only hope is the realtor believes you
and wants to be a nice guy and withdraw voluntarilly.   Neil

Thank you for the comment. Actually, in my case, the agent knows that
I saw the house, so it is not an issue of proof. I just need to know
the law and ethics so that I can talk to the agent in an educated
manner. Further, I don't think that the seller's agent has the right
to demand that the buyer use him as his realtor. Therefore I think
that in this case, because I saw the property already, I can ask the
agent to drop the buyer's side of the commission, and we should see it
as if I had come in with another agent. If you know anything more, or
have links to information, please let me know or post it as an answer.
Thank you.

I'm not an expert in real estate law, but I have recently bought a
house in Southern NJ, and your question struck me as interesting.  I
know there are different customs in Northern NJ.

I believe, that as a buyer, you will not pay the agent's fee.  The
seller pays all listing fees.  The seller has signed a listing
agreement that requires him or her to pay the agent.  If you didn't
sign something that obligates you to pay some fee, then I think it is
the seller's responsibility.

If the seller talked to you, then signed a listing agreement with an
agent, the seller might have a hard time avoiding paying the fee.

For better or for worse, there are laws in NJ that cover any
eventuality you can think of.  I never buy a house without a good real
estate lawyer.

As was previously commented,  it all comes down to what kind of realtor you have.