Our broker requires we do one at the first showing. In general most agents in our office do one "free" showing to get a feel for the customer. If they like us and want to continue to use us then we have them sign a Buyers Agency form and a Limited Agency form.

If we haven't had them sign before we write an offer, we absolutely must have them sign before we do the offer paperwork. By then it's not usually and issue. The ones who've refused to sign generally are already bouncing around with different Realtors so they aren't really worth the trouble in my mind.

Many agents in other offices have said they always meet new buyers in the office to go over these documents and get a feel for their needs. We haven't done that yet but may be that way once we get busier in the spring.

What Fl Agent Said -
I was licensed in Florida just before the agency law changed to elimenate dual agency and Transaction Brokersge became the norm used by the majority of brokerage firms. In spite of that. customers still referred to us as "their agent" and licensees still referred to "my client"

Being an AGENT brings a lot more responsibility in terms of what you MUST do versus what you CAN do. And even the implication of an agency relationship could mean years of litigation and heartache for all involved.

You make a good point, I didn't take the time to explain the process or edjumacate my lady. I'm not good at this due to a certain shyness/possible lazyness, need to overcome this issue. I did give her 20 business cards for their open house adventures. To be honest I still like these people.


The same thing happened to these guys but they didn't handle it
very well which is unfortunate as you will see.

http://www.youtube.com/watch?v=PM9wx3slsOA

I take in a lot of sign calls from buyers who want me to show them the listing, I always ask, Are you working with an agent?

I know many of you know the words that I am about to write. 6 times in 10 they say, "We have not signed anything with anyone."

Of course what I hear is, "Yes we are but we are willing to screw him/her if we think it is to our benefit."

Then I ask if they have been looking at houses with anyone. Well, so sand so showed us a few homes. At that point I ask them to tell so and so to give me a holla.

LOCALLY we are subject to periodic "compliance audits" by the regulators and in addition to the regular audit process they may choose one or more files at random or by design to examine more closely for violations.

One thing that must be present in the file is documentation of the agent advising a consumer (disclosure) of the various type relationships available to the consumer, such as a fiduciary relationship or a non-fiduciary relationship and when the required written disclosure was actually made and acknowledged by the consumer and the relationship that was established, if any by the consumer.

Therefore, our brokerage firm only "represent" buyer’s under a buyer brokerage agreement, referred to locally as a “Buyer Representation Agreement” We also make a point of explaining that if they had signed a similar agreement with another brokerage firm that the would be required to compensate both brokerage firms as originally agreed.

Further, we have a buyer’s registry where a brokerage firm who places a buyer under contract can register that buyer’s name in the registry and allows other brokerage firms to check on whether the buyer is under contract to another brokerage firm.

IMPORTANT NOTICE: This information is provided as basic educational information by the author and is not a substitute for the advice of an expert and/or the advice of a Lawyer. There is NO representation as to legality, accuracy, correctness of the herein information and the reader is strongly urged to consult a lawyer in the relevant jurisdiction to ensure accuracy before acting on this information.

Time is money. I don't know how else to say it. I can only work with so many clients at a time.

To work with me you have to show commitment and ability to purchase.If you can't show me that I don't have time for you as I have many other commercial buyers lined up that want to work with me. I want to achieve the highest ROI of my time as possible.It is close to the same time line to sell a 1 million dollar property as it is to sell a 5 million dollar property.

The other factor to time is how much business do they represent??

If I list one Family Dollar store and they own 20 others plus know other owners that is an important long term client.Especially if we get along well after the first transaction.

I have a few hundred investors that just want the deal when I list them and then about 15 to 20 I work closely with on a more daily basis that we get along great.

Had one buyer call me 1 week ago.Had about 600k in CD's and they weren't paying out squat.Commercial market is depressed so he wants to jump into the game.Is older and doesn't have a computer so I snail mail him properties. Told me to send him whatever agreement and he will sign it I didn't even mention it the buyer did.

If you can demonstrate that confidence in person or on the phone your passion will come across and they will want to work with you.It won't be forced it will just flow.One of the hardest things for some agents just making it is when they get a potential client they hold on for dear life.

The potential client senses this desperation and turns them off to using that agent.All of my clients respect my time as well as I do theirs.

So what I would say is do what others don't to become the best.I personally love reading the federal and state statute laws pertaining to real estate,banking finance,etc. Being able to intelligently converse on a myriad of topics shows the potential client you are well versed and knowledgeable about many subjects.

If you work with investor clients don't just know about contracts.Learn about rehabbing,cash on cash,ROI,debt service,taxes,1031 exchanges,county codes,city codes,new development,zoning,and on and on.

If you don't have much business use that time to learn and become a more valued commodity.Ask yourself why would anyone want to work with you for real estate??

If you answer because I give great customer service you are in serious trouble.

If you explain that the buyer brokers agreement contractually shows you represent the buyer as a client most will sign it.If you say it protects my commission if you try to screw me that won't make buyers jump up and down.

Super,

In Louisiana we have a state mandated "Agency" form for all buyers and sellers to sign, explaining our relationship. The Buyer-Broker agreement is strictly optional, as far an being required by any authority.

I only do residential, and am still torn on whether to require my buyers to sign it or not, because SO few agents use them, buyers are reluctant to sign any formal committment. I don't think as a consumer I would sign an obligation to work with someone exclusively before I have experienced any level of service from them.

My thoughts are to explain upfront that we will show them 2-3 properties, and if they want to continue our service, THEN we will sign a formal obligation to commit. Give them a "test drive" to see if we are a true fit. Any thoughts?

super realtor is absolutely right when he writes time is money and the best use for your spare time is to develop your knowledge.

Everything thing you do around real estate involves some law or regulation which you can read up on, together with reading real estate caselaw and learn from the mistakes of others.

It’s amazing how many times the courts interpretation of the law, differs from what some real estate organizations have mistakenly led some agents to believe, it’s like the blind leading the blind.

Locally, it is understood that if you are not working for the buyer, then in most instances you are acting as a sub-agent of the listing broker, and if you are doing neither, then you are in the wrong business.

I, only represent clients who are qualified and committed and I don’t sugar-coat the agency explanation and put it to the prospect plain and simple, do you want me working for you or against you. If you don’t want me as you agent, then I won’t take up anymore of your time.

@Andy,



I like your take on this thread and have explained this very same idea to some others as well. I couldn't have said it any better.

-Keith