60 Seconds in Real Estate, Cary NC: NC Association of REALTORS® Buyers Agency Agreement

By
Real Estate Broker/Owner with Realty Arts NC Broker License #235526

Buyers Agency Agreement

Buyers Agency Agreements?  Do you need one in North Carolina?

Yes, if you are going to work with a REALTOR® or licensed agent to represent you.
It is the law.  An agent cannot represent you in a real estate transaction without a written agreement.
The North Carolina Association of REALTORS® provides members with a form that describes the relationship and establishes expectations for the parties.
Absent a formal agreement, the default assumption is that the agent is working for the Seller, not for the Buyer.

The Buyer agency agreement serves a valuable purpose for the Buyer.  The Buyer becomes a "Client," rather than a "Customer."  When the Buyer is a Customer, the Agent's loyalty is with the Seller, and the benefits of advocacy remain with the Seller.  We sell to Customers.  We consult with Clients, and the legal responsibilities are more detailed in that relationship.

Some folks are hesitant to formally engage an agent for a variety of reasons:

  • Sometimes they are afraid they will be tied down to the agent, even if the relationship is just not working.  I always give the client, and myself, a "Get Out Of Jail, Free" card.  All my Buyer Agency agreements include the provision, "Either party may terminate this agreement at any time prior to location of a suitable property."  I want people to be at ease as we work together, and in the client/agent relationship of their free will.
  • Some folks do not understand how agents are paid, and that makes them nervous to sign a document.  To make it worse, some agents are uncomfortable or inarticulate when it comes to discussing compensation.  Agent compensation is dealt with in the agency agreement, but should always be open to conversation.  We are fortunate in the Triangle MLS, as Buyer agents typically have no problem collecting co-brokerage fees from listing agents, and this simplifies the compensation conversation.
  • Some people just don't like paperwork, and will sacrifice security for convenience.  But, for sure, there will be tons more required documentation before a home is bought.  Meetings where we are writing offers, discussing purchase terms, and exploring property values are much easier if we don't have to spend valuable time going over a Buyers Agency Agreement that should have been reviewed days or weeks prior.

And I did a 60 Seconds in Real Estate video touching on some of these topics:

 

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Scan the QR Code with your Smartphone to Email MeQR CodeMike Jaquish, REALTOR®

919-880-2769 www.RealtyArts.com

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Independent Broker/Owner, Realty Arts

130 Towerview Court,

Cary, NC

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Rainer
246,325
Daniel H. Fisher
www.FisherHermanRealty.com (704) 617-3544 - Charlotte, NC
MCRP - Charlotte Real Estate, NC or SC

A NC Buyer Agency must be agreed to in writing sometime prior to making an offer.

However, if a Buyer gives their word that when they buy a home in Charlotte, they will do so with our firm, we start treating that Buyer as a client.

We trust that Buyer will keep their promise and continue working together as they buy a Home for sale in Charlotte. We never sell to our clients.  As their agent, we research, inform, advise, counsel, then assist and act on their behalf.

With regards to commissions, our Buyer clients understand that while they are ultimately responsible to pay our commission, the Seller generally pays our commissionon behalf of the Buyer.  We disclose the commission offered by the Sellers of each listed home for sale that they are considering.

People comment that they appreciate this more relaxed and trusting approach.

Jun 08, 2011 02:33 AM #1
Rainmaker
786,727
Mike Jaquish
Realty Arts - Cary, NC
919-880-2769 Cary, NC, Real Estate

Daniel,

Verbal is good, but I truly like to avoid the signing of the agency agreement when we are working on the Offer to Purchase. And I like to establish compensation expectation as required by regulation so that variations are noted, again, as required by regulation.

There is no lack of trust in my approach, either, and I find that clarity builds trust.

Jun 08, 2011 02:37 AM #2
Ambassador
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. 4Terra Land Brokers .. 828-776-0779 Asheville NC
REAL ESTATE RESOURCES & NETWORK - Asheville, NC
What's Most Important to YOU? Call(828)-776-0779

Mike~

Thanks for the post on this very interesting subject. It is timely ...and useful information. I'm "Suggesting" it!

Jun 08, 2011 03:42 AM #3
Rainmaker
786,727
Mike Jaquish
Realty Arts - Cary, NC
919-880-2769 Cary, NC, Real Estate

janeAnne,

Thanks! I remember from licensing class and the topic of agency, "The most confusing topic for many consumers is, 'Who does the agent represent?'"

Jun 08, 2011 04:04 AM #4
Rainmaker
97,274
Joshua Harley
Fathom Realty - Plano, TX
CEO, Tech Geek, Innovator, Disruptor, US Marine

Mike - that's a great video, and I expect it's helpful when you are talking to folks who are interested in buying - you can direct them to more info.  Well done.

Jun 08, 2011 04:13 AM #5
Rainmaker
786,727
Mike Jaquish
Realty Arts - Cary, NC
919-880-2769 Cary, NC, Real Estate

Joshua,

Thanks. And, yes, it is always good to be able to point people at more information.

Jun 08, 2011 06:10 AM #6
Rainer
134,721
Jim O'Donnell
Raleigh Cary Realty - Fuquay Varina, NC

Good post.  Should I assume the next 60 second video will discuss dual agency?

Jun 09, 2011 02:37 AM #7
Rainer
134,721
Jim O'Donnell
Raleigh Cary Realty - Fuquay Varina, NC

I am waiting for my next installment of the 60 second video

Jun 13, 2011 04:13 AM #8
Rainmaker
786,727
Mike Jaquish
Realty Arts - Cary, NC
919-880-2769 Cary, NC, Real Estate

Jim,

It is posted!

Jun 13, 2011 03:47 PM #9
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Loreena and Michael Yeo
3:16 team REALTY ~ Locally-owned Prosper TX Real Estate Co. - Prosper, TX
Real Estate Agents

Love this video, Mike. I think videos enhance marketing. Nicely done.

Jun 17, 2011 12:34 AM #10
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