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Sign Before I Give You More Information...

By
Real Estate Agent with Diamond Partners Inc 00244377

Dear Mr. & Mrs. Buyer,

Please understand, it's not that I don't want to sell you a house or provide additional information regarding a property.  But, before I do - I will need your signature or an implied agreement.  It's the LAW.  If it seems I am not doing my part to follow up with you, it's because you have not told me WHO I will be representing if I were to assist you.  My firm requires that I produce this in writing.    

New York State requires every real estate agent disclose and explain the law of agency to prospective buyers and sellers.  As a buyer, you actually have choices when it comes to how I might represent or not represent you in a transaction.  Yes, the LAW says that I can help you without actually representing you.  In fact, I must assume I am representing the seller until you authorize me to act in the capacity of a buyer's agent.  This means my hands are tied until you agree on my role.  Until then, I cannot provide certain information which might be helpful to you as the buyer.

As the real estate consumer, I know this is hard for you to comprehend. 

Believe it or not, there are even many agents who don't understand this - although they have real estate licenses and this was drilled into their heads over and over.  I can't begin to count the many times this was covered in the real estate licensing course.  And, still many experienced agents don't get it.  And, those who do understand might ignore the process because they don't want to rock the boat and make a buyer sign something that they feel uncomfortable and confused about - or, might even cause them to panic about feeling obligated to the agent.  No need to feel scared, the New York State Agency Disclosure form only requires the agent to be obligated to a buyer or seller?  It discloses who the agent would be working for in providing any and all information.  That's all.

This LAW applies whenever there is any potential for a transaction.  Yes, even if you are just poking around and asking me to do some research, requesting to know what similar homes in a neighborhood are selling for, or what the sellers might have paid and when they purchased.  Yes, in seeking this information, ypu must decide to allow me to represent your best interest IF the information I provide could in any way be used to help you make an informed decision - and, even if I never become part of a transaction between you and the seller.   

If you are reluctant, I think I understand why.  You already told me that you have been talking to another real estate agent.  Even though you told me you might not continue to work with him, perhaps you'll still be keeping your options open. 

I agreed to show you just one property.  Maybe I explained the law of agency and went as far as requesting that you sign something while the previous agent did not.  This would mean that I am doing things by the book, and he is not.  You say you want me to provide more information.  Just provide an acknowledgment showing I informed you of the law and gave you the choice in how I would be working for either you OR the seller.  Otherwise, I feel that I cannot move forward in answering your questions.  Without authorizing me to work in your best interest, I cannot guide you in determining a fair market price. 

And, if you think the other agent was more helpful without having to discuss agency disclosure or clearly estabiishing the agent/buyer relationship, then you should realize he would be acting as an unauthorized buyer's agent, and therefore not be abiding to the LAW of agency.  This is required by LAW - before an agent can begin to discuss market value.  Any agent that does not establish this in advance of providing pertinent information that can be used against one party or another in a transaction, is not adhering to the LAW.  Seriously, ...is that really the kind of agent you want working for you?  

It's not that I am pressuring you.  It's not that I failed to follow up with the information you have requested.  It's not that I am not happy to do business with you.  It's not that I work differently than other agents.  It's not that I wouldn't do the best job in representing you.  In fact, I probably have a great deal more integrity than other agents for discussing the law of agency and asking for your signature or acknowledgment.  So, please just authorize me to act in the capacity of a buyer's agent and you will see what a good job I can do for you.     

Very Truly Yours,

Carol Culkin
Your "By The Book" Realtor® 

Posted by

_____________________________________________________________________________

Carol Culkin - REECENICHOLS REAL ESTATE

Carol Culkin - Licensed Real Estate Salesperson for ReeceNichols Real Estate, is your source for real estate in Overland Park and the bordering cities of Leawood, Olathe, Mission, Miriam, Lenexa and Shawnee, Stillwell and Spring Hill. Carol has been ranked as an award winning agent and offers her clients over 10 years of real estate experience.

PROFESSIONAL AFFILIATIONS, DESIGNATIONS AND COMMUNITY INVOLVEMENT:

Member of National Associations of Realtors®, Member of Kansas Associations of Realtors®, Member of Kansas City Regional Associations of Realtors®, Member of Heartland Multiple Listing Services, Accredited Buyer's Representative (ABR), Seniors Real Estate Specialist (SRES), Red Cross Volunteer - Greater Kansas City Chapter, Supportor of Cross-Lines Community Outreach.

 
 

ReeceNichols Real Estate

8001 College Blvd Suiite 100

Overland Park, KS 66210

Office: (913) 451-4415
Cell: (913) 333-8310
   
 http://www.overlandparkhomelocator.com/  
 

                                 

 

Comments(8)

Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

I understand completely. 

What would happen to listing agents' rhythm if they were required to obtain a seller's signature on a document, any type of document, before they could tour the home or provide a CMA?????

One thing for sure, these laws were not written by entities who understand the dynamics of our business. 

But, we learn to live with it. 

MD has disclosure of agency, but presumes buyers' agency initially.  Virginia believes that if you are working with a buyer, you are a buyer's agency.

One thing for sure.  No disclosure requires the buyer to work exclusively with one agent.

 

May 09, 2009 07:46 AM
TIM MONCRIEF
Tim Monciref - Austin, TX
Over 2,000 homes sold…..

Wow.... In Texas we have to disclose it, but not have it signed upon first meeting; but we always get it signed prior to a deal being written, even if we don't have to.

May 09, 2009 07:53 AM
Paul Andres
Family Realty Group, Inc. - Fair Oaks, CA

We're required to present agency before an exchange of information- I have to say I don't receive agency signatures prior to price evaluations or discussing the details of a property with a buyer... I do forward a copy of the agency relationships upon setting an appointment but have never actually asked for a signature prior to the contractual agreement - hopefully I haven't tipped anyone off and get served.

I, on the other had was able to prove procurring cause in a commission dispute with a builder by having the dated agency agreement.

May 09, 2009 08:01 AM
Marianne Snygg
ERA Herman Group Real Estate - Monument, CO
ABR, ASP, GRI, SFR

Carol, you got me so fired up that I started writing and writing and I think I was verging on more words than you put in your original post! So many, that I would be junking up your page with my rant! So, I'm just going to leave a few words and post my rant on my blog.

Needless to say, I totally agree with you. It's a tough topic to get the general public to understand. We just have to keep trying.

May 09, 2009 08:14 AM
Carol Culkin
Diamond Partners Inc - Overland Park, KS
Overland Park Residential Real Estate

At the top of The New York State Agency Disclosure it reads as follows:

 

THIS IS NOT A CONTRACT

New York State law requires real estate licensees who are acting as agents of buyers and sellers of property to advise the potential buyers and sellers with whom they work of the nature of their agency relationship and the rights and obligations it creates. This disclosure will help you to make informed choices about your relationship with the real estate broker and its sales associates.

May 09, 2009 08:23 AM
Ross Westerman
Kingwood, TX

Carol,

In Texas there is a form titled: Information About Brokerage Services which Texas requires agents to explain to a customer at the first substantive meeting.  This form defines the 3 agency relationships an individual may have with an agent.  The form does not have to be signed but a note made on the form that the customer would not sign.

Then there is the Buyer/Tenant Representation Agreement when signed by the customer and agent expressly creates a buyer agency and the customer becomes a client.  There is also Implied Agency which is an agency relationship whereby the customer/client believes, because of your actions, you are representing them and the agent has never stated that the customer/client is not being represented.  Implied Agency is not a written contract so would make it difficult to enforce in front of a judge.

If I understand your post what you have described is our state form:  Information About Brokerage Services which I stated is a state requirement to explain and I always give them a copy and keep the signed and dated one for my records.

If you would like to see this form I could convert one to a .png file and place it in a comment here.

May 09, 2009 08:58 AM
Carol Culkin
Diamond Partners Inc - Overland Park, KS
Overland Park Residential Real Estate

The Modern Resl Estate Practice in New York textbook reads as follows:

New York Real Property Law section 443 (RPL 443) requires that brokers and salespersons give prospective sellers and buyers (or landlords/tenants) a disclosure statement that describes the roles of sellers' agents, buyers' agents, listing brokers' and dual agents. The buyer or seller must sign an acknowledgment certifying that he or she has read the disclosure form and understands the role of the particular agent to the transaction.   

May 09, 2009 09:12 AM
Steven L. Smith
King of the House Home Inspection, Inc. - Bellingham, WA
Bellingham WA Home Inspector

Carol,

Sometimes the paperwork part of my job drives me crazy and it is worse for those of you who are in real estate.

May 09, 2009 09:27 AM