I took an on-line real estate continuing ed class earlier this year on Buyer Agency. As was expected, the literature emphasized the essentials of ensuring that all buyers to whom you show homes sign an Exclusive Buyer Agency Agreement. If you are showing homes that are not listed by your company and neglect to have the buyer sign one, you are essentially breaking the law.
Awkward
For whatever reason, some Realtors feel awkward asking a buyer to do so. And of course it perpetuates itself. The more Realtors who fail to meet their responsibility to do so, the more it can serve as a deterent to others. I suggest that we refrain from justifying our bad behavior with the bad behavior of others.
Simplified
The on-line course suggested the following dialogue with a potential buyer which should simplify the discussion for all those involved:
“I will work hard to try to find you a property that meets your needs, will negotiate on your behalf and will watch out for your best interest. In return, you agree to pay my firm a professional services fee of 3%. In other words, we earn a fee if you buy a property in the geographic area spelled out in this agreement during the time period indicated.
However, f the sellers’ broker is sharing the seller’s commission as part of the transaction, which is usually the case, this agreement credits the 3% back to you.”
“Extremely well said,” I thought as I read this.
Further Clarity
Some wonder about the enforceability of this contract. Using the example of the listing contract is a simple way to put it in perspective for yourself. Both are bi-lateral contracts, and one is as “iron clad” as the other. If they weren’t, then what would be the point of having a contract in the first place?
Your Part
It’s way past the time when all Realtors need to hold up their end of the bargain. Do yourself a favor and save yourself from possible embarrassment at the closing table, not to mention the possibility of personal disappointment for a lot of work with no compensation. Buyer Agency is the law.
What steps do you take to meet your responsibilities regarding buyer agency?
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once again, great advice Al!
I realize that, like a lot of things, it’s easier said then done Mary-Jo but Realtors simply have to meet their responsibilities.