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New Jersey Home Buyers: When Asked to "Consent to Dual Agency" - Just say no.

Given the number of Realtors misleading the public with websites proclaiming that they are "Buyer's Agents" or will represent buyers as a "Buyer's Agent" I've decided to dwell on this subject a bit more.

5 Questions a home buyer should ask when interviewing to find an agent to represent them:

How long have you been in the business?

What makes you stand out in your ability to represent me?

Does your company also list homes?

Can you fully represent me (as a fiduciary) if your company listed the home I want to buy?

If I hire you and I want to see one of your company's listings will you release me to work with a buyer agent from another company - even if I have already seen the house?

I'm dwelling on this because there are a number of agents in my area that advertise themselves as 'buyer's agents' on their websites and (if it is there at all) bury the information on dual agency potential. There is at least one local Realtor with a misleading website name (the name itself gives the impression she would be a buyer's agent).

In fact when you go to the first page of the site it states without qualification "I'm "name" of "company" in "town name" , your Home Buying Advocate. I work an 80 plus hour work week to get the right home, at the right price, without fail, for all my clients."

Frankly, that statement is not just misleading. It is unethical, it is false. She works for a big franchise company that lists hundreds of homes.

It is even more bold - and literally in bold - stating:
"South Jersey Buyer's Agent Gets the Terms and Price that is Best for you, the Buyer"

The site links to the agent's property search page.

At some point I may report this to the real estate commission - in the mean time I'll just use it for fodder for commenting about buyer agency. I'm sure I've given enough info here for anyone to figure out who the agent is and I'm wondering if the site will change because of it.

Members of NAEBA (the National Association of Exclusive Buyer Agents) have taken a pledge to exclusively represent buyers - and never sellers - and they work for companies that maintain that as the core of their business model.

I am a buyer agent member of NAEBA working in the South Jersey and Central Jersey area. My office is in Cherry Hill. If you are looking for a home in the next 6 months, have a 650 plus credit score and are employed, call me today.

Paul Howard, Broker

NJHomeBuyer.com Realty (member of NAEBA)

Cherry Hill NJ 08002

856-488-8444

NJHomeBuyer.com Realty on FaceBook

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twitter.com/paulhoward

Posted by Paul Howard NJHomeBuyer.com Realty... 856-488-8444 on 05/31/2009 10:39 PM

Comments (4)

Non Disclosure of Potential for Dual Agency in Advertising. in the Home Buying Channel

buyers agent, advertising, dual agent, naeba, paul howard, njhomebuyercom realty

This post has been included in New Jersey Information Camden County, NJ Information
Post is included in group: New Jersey Real Estate Experts
Post is included in group: ETHICS and the REALTOR

4 Comments on New Jersey Home Buyers: When Asked to "Consent to Dual Agency" - Just say no.

JUN

Paul,

Great post.

And, when buyers actually think about it they have got to see how false and mis-leading that licensee's site is.

The REALTOR Code of Ethics requires licensees to disclose the chance of dual agency to consumers early in the process. In her case you would think that the chance of dual agency would be about 50%. I wonder if she ever does disclose. Probably not until late in the process. Otherwise buyers would be running away from her.

JUN

Thanks Jon,

You would think buyers would run away but I doubt that effect offsets the number she snags with tactics like this. It clearly violates the code of ethics.

I know if I had made this a 'Members Only" post so the general public couldn't see it I'd have dozens of comments by now. I think a lot of the industry doesn't want to touch it. A bit self serving.

It is an important message though, companies that work as dual agents need to disclose the problems with it up front. It is not an individual agent problem. Agents can only work for the person their company is working for.

JUN

NAEBA is urging Congress to have a Nationwide agency disclosure required. I think it is an excellent idea and way past it's time. (There was a press release today!)

I honestly don't have a problem with people saying they are a buyer agent and working with an individual buyer on their side of the transaction. It's better than dual-agency. BUT when they list and work for a company that does and call themselves an Exclusive Buyer Agent - well THAT gets my undies in a knot!

Nannette, I have no problem with agents saying they are a buyer's agent - if they are. When it comes to advertising ones self as a buyer's agent I think it is unethical to do it without disclosing in the same advertising that they can't deliver on that if the buyer may look at a listing the company has. The ONLY agents that can advertise unconditionally as a buyer's agent are those that work for companies that do not list homes - Exclusive Buyer Agents. The only way I know to be sure that a company is an Exclusive Buyer Office is to verify that they are a member of NAEBA - The National Association of Exclusive Buyer Agents.

It is my view that most advertising as 'buyer agents' by Realtors and other licensees across the country is deceptive when they advertise unconditionally. Only in the case of Exclusive Buyer Agents would the claim always be true.

When the URL for the page shouts "Buyers1st" or some equivalent words, or when the landing page (any landing page) makes a statement that the consumer should use them as their buyers agent without disclosing any potential for dual agency that is deceptive.

When a Realtor or other licensee advertises themselves as a buyer's agent without disclosing dual agency potential - even in a designated agency state - that is deceptive because at that point they have not been 'designated' as a buyer's agent by their firm and even then the person doing the designating would be a dual agent if the firm listed the property in question.

The issue is disclosure that is definitely true. I'm happy to see NAEBA pushing for national disclosure. Although I don't think it will happen at the federal level I think federal pressure can make it more likely at the state level. On the other hand to the extent that advertising reaches across state lines - it is a federal issue.

The issue is also false or deceptive advertising. That lack of disclosure is what makes the advertising deceptive. The issues are separate though.

The deceptive advertising aspect is, to me, crystal clear and as I discuss this it becomes even more clear. An easy read at http://www.ftc.gov/bcp/edu/pubs/business/adv/bus35.shtm may help to clarify it for others.

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