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Who are you contracting with?

By
Real Estate Agent with Realty ONE Group Advocates 484-237-2055 PA License - AB067198

You have decided to buy or sell a house, so after some research, talking with friends and family you call a few agents to discuss working with them.

But, stop. Before you go any further who are you actually going to be contracting with? You may imagine it is the agent with whom you are talking. But in Pennsylvania and maybe elsewhere that is NOT the case. Those forms that are presented to you tell a different story.

Firstly, before discussing any real estate related conversation with you, those agents should tell you about the "Consumer NOTICE". Yes, I capitalized that as it is not a contract, but a notice which explains the different relationships you the public have with an agent or brokerage. Basically it explains who represents who. You, so far have no representation. So be careful what you share, as that agent can share what you tell them with others.

After this, you can get down to the nitty gritty discussing the terms of how you will work together. This includes all sorts of things and is really like an initial date. Will the relationship work, do you like each other, who is going to pay for dinner etc.

Now, as I said at the start, you may even more believe you are going to be contracting with your agent, but that is not the case. You are actually going to be signing documents with the agent's brokerage. In Pennsylvania all agents have to lodge their license with a broker, who is responsible for training them and responsible for their actions. The public contracts with the broker, who designates the agent to work with you. Sometimes you may end up working with a different agent for all sorts of reasons.

The broker is the one who decides if you will be released from the contract, not the agent. The agent may have a lot of discretion who they work with, and the terms of that relationship, but it is still with the broker.

Please, make sure you read what you sign, and understand who you are contracting with from the start, so there are no upsets along the way.

If you have any questions, please reach out to Nick Vandekar, Associate Broker, Selling the Main Line and Chester County with Realty ONE Group Advocates, office 484-237-2055, cell or text 610-203-4543, Nick@VandekarTeam.com. I make sure you have the confidence to make the right decisions throughout the transaction.

Posted by

Nick Vandekar
Nick is a Tredyffrin Easttown Residential and Commercial REALTOR selling The Main Line, Chester, Delaware and Montgomery Counties.

Giving you the confidence to make
the right decisions.

225 W Uwchlan Ave
Downingtown , PA 19335
Office 484-237-2055
SellingTheMainLine.com
Mobile: (610) 203-4543 [call or text me]
Email Me

 

My Blog

   

If you are buying or selling on or around
Tredyffrin Easttown or along the Main Line, 
I can help you, contact me.

Comments(32)

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Leanne Smith
Dirt Road Real Estate - Golden Valley, AZ
The Grit and Gratitude Agent

So true about knowing the broker owns the contract and the agent is just than an agent or salesperson. AZ is also a state where the broker owns the contract.

Apr 24, 2024 08:35 AM
Nick Vandekar, 610-203-4543
Realty ONE Group Advocates 484-237-2055 - Downingtown, PA
Selling the Main Line & Chester County

Leanne Smith I do not believe that most consumers know this.

Apr 24, 2024 09:47 AM
Leanne Smith

And some agents fail to understand this key concept.

Apr 24, 2024 10:10 AM
Kathy Streib
Cypress, TX
Retired Home Stager/Redesign

Apr 27, 2024 06:01 PM
Kat Palmiotti
eXp Commercial, Referral Divison - Kalispell, MT
Helping your Montana dreams take root

This is something most non-real estate people have no idea about - that they are not contracting with the agent but with the brokerage.

Apr 28, 2024 05:00 AM
Wayne Martin
Wayne M Martin - Oswego, IL
Real Estate Broker - Retired

Good morning Nick. I wonder how many agents understand the relationship with their customers and with their broker? And as I ponder that, I also am mindful that regardless of how clueless state legislators are on the subject of agency, history demonstrates we cannot legislate loyalty or obedience try as they may. Enjoy your day.

Apr 28, 2024 05:43 AM
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Good morning Nick,

I'm not sure how I missed your excellent post! I'm so glad that Kathy Streib featured it in her Sunday series. In Texas we call your "Consumer Notice" "Information on Brokerage Services." It is to be presented to a buyer or seller first so you can go over how we practice Real Estate in Texas. So important because it spells out how you work with a buyer agent or sellers agent. It f you choose to work with an agent  written agreement is required.

Apr 28, 2024 08:14 AM
Hannah Williams
HomeStarr Realty - Philadelphia, PA
Expertise NE Philadelphia & Bucks 215-820-3376

Nick Vandekar, 610-203-4543  Exactly it is not a contract it is a simple form that explains who represents who and what their fiduciary relationships are so there are no misunderstandings - So Glad Kathy Streib featured as i missed this 

Apr 28, 2024 10:53 AM
Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker in DC, MD, VA and attorney in DC

am glad that Kathy Streibfeatured this. You make great points  I do wonder if any states allow direct contracts with the realtor rather than the brokerage. 

Apr 29, 2024 04:15 AM
Nick Vandekar, 610-203-4543
Realty ONE Group Advocates 484-237-2055 - Downingtown, PA
Selling the Main Line & Chester County

Kathy Streib again, thank you so much.

Kat Palmiotti people really do not listen when we are explaining things at the beginning. They are like children just wanting to go and look at houses.

Wayne Martin very true, I do not think many state representatives understand how the real estate business works.

Dorie Dillard Austin TX I like how you explain that, it is very clear.

 

Apr 29, 2024 06:55 AM
Nick Vandekar, 610-203-4543
Realty ONE Group Advocates 484-237-2055 - Downingtown, PA
Selling the Main Line & Chester County

Hannah Williams thanks, glad you got to read it and comment.

Lise Howe that I do not know, although some state refer to all agents as brokers I believe and so maybe they can operate alone. Be interesting as a question in Q & A.

Apr 29, 2024 06:56 AM
Debe Maxwell, CRS
Savvy + Company (704) 491-3310 - Charlotte, NC
The RIGHT CHARLOTTE REALTOR!

WOW! This is excellent, Nick and I can't imagine why it was not featured! 

We operate similarly...we have, what is called, "Working with Real Estate Agents" and also, is NOT a Contract but, rather a review of how we work/operate and what we do and don't do on their behalf, with and without a Contract. 

Savvy agents have this conversation UP FRONT and have all documents signed prior to any transactional work. I just don't understand why any buyer or seller would want to work with an agent who is showing them houses but, is working FOR the seller (seller-sub-agency).

May 04, 2024 08:37 PM
Nick Vandekar, 610-203-4543
Realty ONE Group Advocates 484-237-2055 - Downingtown, PA
Selling the Main Line & Chester County

Debe Maxwell, CRS thank you, I appreciate the compliment.

May 06, 2024 05:59 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Real Estate Broker

Great explanation, Nick. I continue to be amazed by how few agents can fully explain agency to their prospective clients.

May 06, 2024 07:26 AM
Nick Vandekar, 610-203-4543
Realty ONE Group Advocates 484-237-2055 - Downingtown, PA
Selling the Main Line & Chester County

Nina Hollander, Broker thank you, I appreciate your compliment.

May 06, 2024 08:00 AM
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Good Job Nick and thank you for sharing your interesting blog with us.  I would call you for sure to me my Realtor!

May 06, 2024 08:35 AM
Nick Vandekar, 610-203-4543
Realty ONE Group Advocates 484-237-2055 - Downingtown, PA
Selling the Main Line & Chester County

Will Hamm thank you, someone did just that this morning.

May 06, 2024 08:37 AM
Michael J. Perry
Fathom Realty - Lancaster, PA
Lancaster, PA Relo Specialist

Since late 1999 , PA has had a Two Form Requirement with Consumers . All were specifically trained to present both Forms before showing houses .( I was was on the State Faculty-PRI and trained by Jim Goldsmith personally to help address Realtor Associations about this new law in 1999 ).PAR made a training Video that was supposed to be showed at Sales Meetings showing how to present both forms ! 
Fast Forward to 2010 to Present- only 1 out of 5 Agents were correctly following the Above !!!

May 08, 2024 06:14 AM
Nick Vandekar, 610-203-4543
Realty ONE Group Advocates 484-237-2055 - Downingtown, PA
Selling the Main Line & Chester County

Michael J. Perry few brokers have really pushed their agents to get these forms signed in advance. Often it is newer agents who do get the forms signed.

May 08, 2024 08:51 AM
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

The first form that is presented to a prospective buyer or seller client to be signed is the Disclosure Regarding Real Estate Agency Relationship. It is a State mandated form. It sets out the responsibilities of the Seller's Agent, Buyer's Agent, Agent Representing Both Buyer And Seller and Seller and Buyer Responsibilities. It along with other forms, is bundled as the first form in a package for a purchase offer, listing agreement, or buyer broker agreement.

May 08, 2024 05:24 PM
Nick Vandekar, 610-203-4543
Realty ONE Group Advocates 484-237-2055 - Downingtown, PA
Selling the Main Line & Chester County

John Juarez our first form is called a CONSUMER NOTICE, even if you never have a business relationship with the consumer you are supposed to go over the contents. They do not have to sign, but you are supposed to record their unwillingness to sign. Then if they want to move ahead and have a business relationship with you the buyer will sign a buyer broker agreement which details everything about the agreement between the brokerage and the buyer, including compensation and a retainer fee if desired and agreed upon.

May 09, 2024 11:40 AM
John Juarez

Seems fairly close to what we do in CA.

May 09, 2024 01:53 PM