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I am having a back and forth debate with one of my most favorite people here at Active Rain about working with a buyer who does not sign a buyers rep agreement.
Apparently he recently went to a class and the instructor said if you do not have a signed buyers rep you are automatically a sub agent for the buyer.
Below is a question that was asked and answered at the Texas Association of REALTORS®. I have also included a link the the web site.
- If I am going to act as a buyer's agent, must I have a written buyer's representation agreement? (updated Sept. 16, 2009)
- While the relationship between a broker and a client can exist without the necessity of a written document to memorialize that relationship, there are many reasons why a broker-client relationship should be in writing. Those reasons apply whether the client is a seller or a buyer or whether we are discussing listing agreements or buyer representation agreements.
•1. 1. Section 1101.806(c) of the Real Estate License Act provides that a broker may not sue for the recovery of a commission unless there is a written agreement signed by the person agreeing to pay that commission. In other words, unless you have a written agreement signed by a seller or buyer agreeing to pay your commission, you cannot enforce your right to collect your commission from that person.
•2. 2. If a broker's practice or office policy permits the broker to act as an intermediary (i.e., the broker has a broker-client relationship with both the seller and the buyer in the same transaction) then Sec. 1101.559 of the Real Estate License Act requires that the broker obtain the written consent of each party and that written consent must also state who will pay the broker. The Texas Association of REALTORS® buyer's representation agreements and listing agreements have provisions which include the necessary written consents and other statutory requirements for a broker to act as an intermediary.
•3. 3. It is just good business to reduce to writing the rights and obligations of the broker and his client to insure a meeting of the minds of the parties as to all the essential terms of those rights and obligations. Furthermore, Article 9 of the Code of Ethics requires that REALTORS® shall assure whenever possible that agreements shall be in writing for the protection of all parties.
http://www.texasrealtors.com/MR/Legal/FAQs/Agency/BuyersRep.cfm
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