I've been reading a lot of posts, and they seem to come in waves here on the Rain, regarding using (or not) the Buyer Rep Agreements.
Good posts. Good perspectives.
Many agents don't use them, and are insulted at the mere mention . . .
I've been using Buyers Rep Agreements for years. Don't leave home without it! The ability to have several issues covered by obtaining the signatures from buyers is huge.
But THE MOST IMPORTANT REASON I USE A CONTRACT IS THIS: The Buyers, upon signing, have now made me (via Buyers Agent Portland, LLC) THEIR FIDUCIARY!
In order TO STIPULATE THE LEGAL AGENCY RELATIONSHIP, a signed contract is needed ~ otherwise the buyer/seller are not represented. The agent owes no duty to customers/consumers/or the general public.
When Buyers engage the services of Buyers Agent Portland, LLC to represent them, i.e., establish a FIDUCIARY RELATIONSHIP is legally formed and I become duty bound by the Fiduciary Duties of the Real Estate Agent, which are:
- Loyalty: To act at all times in the best interest of the principal and to put those interests above all others, including yourself.
- Obedience: To obey promptly all lawful instructions of the principal.
- Disclosure: To disclose all known, relevant facts to the principal.
- Confidentiality:To safeguard the principal's secrets, unless keeping the confidence would violate disclosure requirements about the property's condition.
- Reasonable care and diligence:To diligently use real estate skills and knowledge when pursing the principal's affairs.
- Accounting: To account for all funds and property entrusted by the principal
No getting around MY DUTIES TO THE BUYERS!! They signed me up. They engaged me. I'm now under contract to provide THE BUYERS FIDUCIARY DUTIES!
Do Buyers have a FIDUCIARY relationship with the agent when they call the listing agent off a FOR SALE SIGN -- NO!
Do Buyers have a FIDUCIARY relationship when they call the office and speak with the floor agent -- NO!
Do Buyers have a FIDUCIARY relationship when they meet the listing agent at the property to tour -- NO!
Do Buyers have a FIDUCIARY relationship when they email the listing agent for more information about a listed property -- NO!
Do Buyers have a FIDUCIARY relationship when they go to an OPEN HOUSE and talk with the listing agent -- NO!
Do Buyers have a FIDUCIARY relationship if a BUYERS AGENT shows them 10 houses -- NO!
Without a signed Buyers Rep Agreement -- there is no binding FIDUCIARY relationship and/or FIDUCIARY DUTY established.
When I talk with a customer, I talk to them about FIDUCIARY DUTIES, and why signing a Buyer Rep Agreement with Buyers Agent Portland, LLC is a good thing.
Here's what happens when a Buyer signs Buyers Agent Portland, LLC's Exclusive Buyer Agent Agreement:
The BUYERS become CLIENTS and I become their FIDUCIARY.