The other day on the radio I heard this oldies from the 70’s, Signed, Sealed and Delivered I’m Yours and my very literal brain immediately made the jump to some of the social media real estate groups regarding Buyer Employment Agreements. Here in AZ we have a document entitled “Buyer Broker Exclusive Employment Agreement" or BBEEA for short.
What I have read is agents signing similar worded agreements and then the buyer purchases a house using another real estate agent. The real estate agent with the signed document is beside himself or herself. Then asks this question:
What can I do to secure compensation?
For me beyond the whining and whimpering, the posting of this question reveals the buyer’s agent failed to explain the purpose of the Employment Agreement. My sense the problem might be a brief or no explanation shared when the buyer’s agent tells the buyer please sign here. Additionally the other agent may not have asked if the buyer is working with another agent and if so was any document(s) signed?
When I have clients sign the AZ BBEEA, I first include it as a sample in the packet I provide to the buyers. I ask the potential clients to read it and then we can discuss the other sample documents within the packet. During this second conversation, I first go over the following documents:
- Consent to Limited Representation - Explaining if I represent both the seller as the listing agent and the buyer as the buyer's agent.
- READE - Real Estate Agency Disclosure Election - This explains the fiduciary duties held by myself. Often OLD CAR is stated as a simple explanation to what those duties are.
- MCA - Market Condition Advisory - Markets go up, markets go down, there is no guarantee
- WFA - Wire Fraud Advisory that highlights how to be aware of wire fraud.
Then we discuss the BBEEA and how it works with the actual purchase contract including any and all addenda such as:
- Seller Compensation Agreement (SCA)
- Waste Water Treatment Facility - Septic (WWTFA)
- HOA, Well, etc, if applicable
I do stress if you talk with another real estate agent please inform that agent you are represented by and have a signed employment agreement with another professional real estate agent. Outside of a couple of clients who bought FSBO properties during the last 8 years, I have never had any issue with clients working with another agent.
Unfortunately too many real estate agents believe signed, sealed and delivered will ensure their compensation.
Education matters!
Fail to educate often delivers unintended consequences!
Remember Signed, Sealed and Delivered is not a Guarantee of your client truly being yours.
P.S. Please consider checking out my Facebook business page, The Grit and Gratitude Realtor, that will focus on the Dirt Roads in Mohave County as well local real estate, lots of dirt or vacant land parcels as some of the local attractions.
#LetsGetBackToRealConversations #WeDoThingsDifferently #RealEstateAgent #RealEstateBuyers #GoldenValleyAZHomesandLand #ArizonaAcreage
Leanne M Smith, The Grit and Gratitude Agent Who Goes the Extra Mile Because Life Begins Where the Pavement Ends.
Feature Photo Courtesy of Pixabay.com
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