Exclusive Buyer Agreement Misconceptions
There's a reason why I've been focusing on EBA. And when I read this post today I couldn't help re-blog. I have my reasons!
This is the best explanation I've read, bar none!
Some states call them "Buyer Broker Representation Agreements" which makes more sense and is more logical.
In Oregon, they are called "Exclusive Buyer Service Agreement" . . . but the mere fact that there is a provision which would permit "disclosed limited agency" (our state's "dual agency" moniker) is a joke. How can anything be "exclusive" IF the contract itself allows for dual agency? It's NOT "exclusive" to the buyer because it sets the buyer up for a misleading notion of exclusive representation. It can not be an "Exclusive Buyer Service Agreement" if there are provisions allowing for . . . NON-Exclusive Buyer Services. DUH!
Exclusive Buyer Agreement Misconceptions
An Exclusive Buyer Agreement is a Buyer "Listing" agreement no different than a Seller "Listing" agreement. A Buyer listing is an agreement to find the buyer a home, just like a seller listing agreement is to sell the sellers property.
An Exclusive Buyer Agreement only means that the buyer will work "exclusively" with that licensee and not work with other offices. The Exclusive Buyer Agreement needs to have a start and end date, and the terms under which the buyer will buy and by what means the agent will be compensated.
Here is some clarity for the most common Exclusive Buyer Agreement Misconceptions:
- An Exclusive Buyer Agreement DOES NOT MAKE ANY AGENT AN EXCLUSIVE BUYERS AGENT...Exclusive Buyers Agents ONLY work in Buyer Agency offices the never list property...ever. Watch the video.
- An Exclusive Buyer Agreement is not the same as a mandated "agency" disclosure that is required by the state. It is also not an agreement for "Exclusive Buyer Representation" services that only an Exclusive Buyer Agent can offer.
- Having an Exclusive Buyer Agreement does not change the status of the licensee. If the licensee is a sellers agent, buyers agent, transaction broker, dual agent, single agent, or non-agent...what they are does NOT change. For example, if the Real Estate Office policy is to be a Transaction Broker, an Exclusive Buyer Agreement does not make the Transaction Broker a Buyers Agent...they are still a Transaction Broker.
Last but not least...read the agreement and understand it. "Working with" and "Assisting" does not mean "Representing". Make sure that both the agent and the buyer clearly understand what they are signing so that there is informed consent and no Exclusive Buyer Agreement Misconceptions.
Copyright @ Buyers Broker of Florida 2012 "Exclusive Buyer Agreement Misconceptions"
Real Estate Agent Conflict of Interest
Orlando Buyers Agent or Orlando Exclusive Buyers Agent
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