LOL Carla! So true. How do you handle dual agency in your office/one of your own listings?
Herman - this type of post cannot be stated more often for the consumer. Every week I get someone who calls on my listing then asks about another one, asks if I'm the listing agent and when I say 'no' they say' Oh I only work with the listing agent. They are under the assumption that they will get a better deal and that the listing agent will cut the commission. Why, in the world do they think that I would do that when I don't know then from Adam's house cat and have a hard fought and highly committed relationship with my seller? Always amazes me
A sellers agent is important for a seller as shown on the MLS and in all the advertising The listing agent is working for the seller. So now a buyer is left all alone and has to fend for themselves becasue the listing agent is only interested in selling the home. GET representaion with a BUYERS AGENT.
Herman, this should be required reading for every buyer out there. Too many of them have no idea that their best interestes are not being represented when they go with a sellers agent or into a dual agency relationship.
I think that NAR does not really do a good job of explaining the importance of exclusive representation even though the code of ethics indicates that exclusive buyer or seller agency is favored. When an agent goes to the seller's agent directly, they have no representation at all. It is only disclosed dual agency when the Buyer has a buyer agency agreement in place with the same agent as the agent who represents the seller.
Good analogy.
EXCLUSIVE Buyers Agent works in an office that NEVER represents sellers. Therefor they do not list homes or practice dual agency.
An EXCLUSIVE BUYER AGENCY AGREEMENT does not make an agent an Exclusive Buyers Agent. Whatever your office policy is, remains the same. This agreement only makes the buyer "exclusively" work with that office.
A dual agency DISCLOSURE is not the same as an EXCLUSIVE BUYER AGENCY AGREEMENT. (there is no true representation with dual agency either)
Eve in Orlando
Since there is no dual agency in Florida I can't comment on that part of the post. I will say that I can not understand why anyone would not want their own real estate agent.
I would encourage any buyer to sign one--that real estate agent is working hard to get you the best deal for price and terms of the contract.
Susan - It amazes me as well. Seller agents do sometimes cut their commission to make a deal work. And word get around fast.
Jimmy - Well said my friend. The problem I find here in NYC is that it takes time for potential buyers to earn the trust it takes to sign a buyer agency contract. NYer's are very skeptical and trust is hard to earn!
Jim - Thanks you!
Lora - It should be required reading. Unfortunately many agents don't understand agency...so how can we expect the public to understand.
Joan - I couldn't agree more. It's so hypocrytical it's laughable.
Eve - I agree with your 3rd statement. Here in NY...your first 2 statements are not accurate.
Gary - No dual agency in Florida? So what type of agency do you declare when you're on both sides of a deal? Or is that illegal in Florida?
Harry - Sounds straight forward enough, doesn't it? You would think every buyer would be signing one. Not here in NY. Difficult to get that signature.
I am an Exclusive Buyers Agent. My brokerage does not take listings and/or represent the sellers. We practice TRUE fiduciary duties at EBA Portland. Not that the buyers have a clue . . . all I can do it edu-ma-cate them one at a time ;-)
An "Exclusive Buyers Agrent Agreement" is NOT the same as an Exclusive Buyers Agent.
ALL agents work for the brokerage and if that brokerage takes listings, then ALL agents are representing the seller of that listing and/or listings. It's the OFFICE LISTING and all agents hanging their license with that brokerage ARE agents of the seller.
It's called the Law of Real Estate Agency. It dates back to Common Law in the 1700's
Don't confuse the wording of your form with the PRACTICE of Exclusive Buyer Agent. I am willing to BET my license you "Exclusive Buyer Agency Agreement" contains language that allows you to practice Dual Agency. Probably a caveat under something like: representation of other clients in the same transaction . . . something like that.
If your brokerage takes listing, YOU can not advertise yourself as an Exclusive Buyers Agent. You do not practice EBA, since you work at a brokerage that takes listings.
The form is confusing, and if ANYONE reads it carefully, it will contain language to allow for Dual Agency. How "exclusive" is that?!?
Actually Herman, my statements are very accurate...
http://en.wikipedia.org/wiki/Exclusive_buyer_agent
I repeat, an Exclusive Buyer Agency agreement only means that the buyer will work "exclusively" with that office. The agent COULD be representing the buyer and they ALSO COULD BE A DUAL AGENT, TRANSACTION BROKER OR A FACILITATOR or a NON-AGENT. ( yes, it is no different than a listing agreement with the seller)
The agreement does NOT make the agent an EXCLUSIVE Buyers Agent...they are found ONLY IN OFFICES THAT DO NOT LIST PROPERTY.
Eve in Orlando
Ps: Florida has replaced the word "dual agent" with "transaction broker"...a middleman with no fiduciary duties...sounds better and is easier to dupe the consumer with.
Great explanation anyone should be able to understand. Since buyer agency came into the picture, I've found that lots of agents just can't explain it very well. I make it very simple for buyers: I tell them I need to represent someone's interest in the transaction... so it's either their's or the seller's and as the seller already has an agent representing his or her interests, why would they not want me to represent theirs?
Corinne - Agreed. Once you explain agency to potential clients, it's seems so elementary.
Carl & Mike & Eve - So the keyword is EXCLUSIVE. That's interesting and honestly? Makes perfect sense. But how do you make your phone ring if you don't have any listings? I'm not being facetious. I know for my own office, the more listings we have, the more deals we close...and vice versa. So where do your leads/deals come from? Thank you for taking the time to comment and correct me.
Nina - That's the problem. We aren't explaining it to our clients properly.
Herman, An informative post that every buyer should read. I cannot tell you how often I hear them say, I'll call the listing agent thinking they're going to get a better deal (as Susan Jacobsen said.)
In Florida, there is no dual agency. We are required to work as transaction brokers. You can still have a BBA. There is a place to check off single agent, etc.
Elyse - Thank you for commenting. I'm doing a deal right now where I'm on both sides of the deal, as a dual agent. When I first met with the buyer and we discussed buyer agency, he didn't want to hear about it. All he cared about was how much he was going to save by going directly to the listing agent. I actually hand all buyers a printed copy of this blog at each meeting after we discuss agency.
Okay, so I'll chime in . . . YES being a Realtor to your client is important. Being a FIDUCIARY is even more. The general pubic doesn't understand how a fiduciary has more at stake than the "dual agent." This quote is a joke, IMHO because NAR does not do anything to promote Exclusive Buyer Agency (no listings, no seller representation) and/or warn about the pitfalls of the dual agency to buyers: “REALTORS® pledge themselves to protect and promote the interests of their client. This obligation of absolute fidelity to the client's interests is primary. . . . Unless . . . You call the listing agent and they double dip, Then forget what we just said about Realtor(r) pledging themselves and all that nonsense. We were joking. Just kidding!! ~~ Thank you! The NAR. Proudly protecting OUR TRADEMARK since 1901. Buyers . . . meh, not so much!"