Georgia’s Buyer Agency Law….How Does it Affect You?

By
Real Estate Agent with Seasons Realty Group of Solid Source Realty, Inc.

 

For years Georgia did not have a buyer agency law in place. As a matter of fact, the only party to have representation in the transaction was a seller. However, the state of Georgia passed a law that provides the buyer to have the representation as well, but with a few provisions.

First, the buyer needs to put his request for representation in writing by signing a contract with a real estate broker. And, this request needs to be in writing before going to look at houses and certainly before writing a contract. Without this request in writing,  every agent the buyer talks to is technically representing the seller according to the way the law is written. So, why would you want everyone in the transaction representing the seller??

Well most don’t. However, the way the law is written, without a buyers agreement, the agent is obligated to protect the sellers price and interests and is NOT allowed to offer advice or opinion to the buyer.

Unfortunately, what this means is that any agent the unrepresented buyer talks to should not be given any confidential information as it may be used to the advantage of the seller, whom legally, the agent represents.

So, let’s say that a buyer, who decided not to sign a buyers agency agreement, decides to put an offer in on a home. The buyer has to tell the agent exactly what they want in the offer, without any advice or guidance being offered by the agent and the buyer may or may not understand the contract or the real estate process, can find himself in a world of hurt.

Ideally, the buyer should seek representation as soon as they are ready to look at houses. I recommend even before hand because there is a lot of education that goes into lending laws, pre approvals, etc that can save a buyer a boat load of time. 

And Just a Few More Tips When Hiring a Buyers Agent:

·         When you Google the Agent, What Do Their Clients Have to say about their services?

·         If you are concerned about the commission, remember the commission is paid by the seller and can be negotiated with a for-sale-by-owner seller as well.

·         Meet with the agent first; see if there is a comfort level with both the person’s knowledge and personality.

·         ASK QUESTIONS!

Remember, it doesn’t cost you a thing to have us represent you, but it could end up saving you a fortune. Visit http://www.seasonsrealtygroup.com/Our-Team.html to learn more about how our EXCLUSIVE BUYERS AGENTS can help you succeed in a world of uncertainty!

 

 

 

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Ambassador
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Florida Tolbert Team Keller Williams Advantage
Keller Williams Advantage III Realty in Lake Nona - Orlando, FL
Million $ Guild Member Cert Luxury Home Mkting Spc

Excellent reporting of the facts.  Congrats on all your HGTV appearances.  Post your schedule and I will be sure to tune in for the next one.

Feb 10, 2012 09:26 AM #1
Rainmaker
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Pat and Ed Okenica
RE/MAX Agents Realty Lake Oconee Ga - Greensboro, GA
Lake Oconee Ga Real Estate

This is such an interesting post about Buyers Agency.  However, one aspect I have never been able to get my arms around with the way the laws are written is, how does a Buyers agent function, comfortably, when a Buyer all of a sudden wants to see one of our listings...and subsequently wishes to make an offer.  The "textbook" tells us we should turn them over to another broker to represent them.  That just isn't realistic.  What agent in their right mind is going to turn their Buyer over to another broker, once they have established a relationship with a Buyer and shown them around all over the place?

I understand there is a "designated agency" option, however there is the issue of "imputed" knowledge an agent in your own company may have been privy to.  I just don't get it! I believe it was easier just representing the Seller. It's such a difficult concept to explain to Buyers and Sellers....especially when the Sellers sign an Exclusive Right to Sell, which also has a clause for them to agree to, which states, that at some point the agent may also be representing a Buyer.

How do other agents/brokers feel about Buyers Agency?  Am I just out in left field with my thinking?

Good Food for Thought, eh??

Feb 21, 2012 04:51 AM #2
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Rainmaker
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Winter Baserva

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