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#69953 - 05/03/05 03:31 PM Buyer_Agreements
Guest
Unregistered


Hi All,

I have a problem keeping buyers. It seems most of the buyers have at least 3 realtors working for them at the same time. Whenever I ask them sign a buyer-agreement, they told me that why they have to sign the buyer agreememt when there are so manyh realtors would love to represent them. What should I do in this case? Most of the time, after showing them houses for weeks and even months, they purchased house from other agents. Do you think this is very unethical after using a realtor for months, use a service for free, wasting my gas and time?

If anyone has any good suggestion, please share. I would really appreciate it because I am truly frustrate over this situation.

I am new in the business, so I still try to figure out my way in this real estate jungle. Upb to now, any right things that I have done have gone against me.

Thanks.

OCBroker.

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#69954 - 05/03/05 06:33 PM Re: Buyer_Agreements
Guest
Unregistered


Find them the property first. In Nevada, we find them the property and sign the agreement with the offer. The agreement only lasts for that transaction

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#69955 - 05/13/05 01:31 PM Re: Buyer_Agreements
Guest
Unregistered


Please help me understand this:

When I was in RE school, they pounded in our heads the fact you have to get a Buyers Rep Form signed to cover you....in other words if you did not have one signed and your buyer(someone you have spent countless hours helping) went somwehere else you did not get any comission.

Today I was talking to several Realtor friends of mine.....and not one of the them use this form, because you would have to sue the buyer anyhow for the comission. Does this make sense?

Please give me your thoughts! Thankyou:) confused

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#69956 - 05/13/05 03:42 PM Re: Buyer_Agreements
KT Offline
Major Contributor

Registered: 01/18/05
Posts: 1581
Loc: Ohio
Many agents I've met don't use an EBA, either. It's not a rule, or law that I know of, anywhere that you must get buyers to sign one. It was designed for buyer agents' protection, to ensure they do get what's owed to them after completing a successful transaction.

W/out an EBA, buyers can use several agents, walk into an open, call a FSBO, whatever, and sign a purchase areement w/out "their" agent. And if they do that, I say more power to them. They found the house, not "their" agent. Why would anybody want to fork over several thousands of dollars to an agent who, if they are lucky, maybe, wrote the PA, but didn't find the house?

As far as suing goes to get a commission...I've heard this variation, but not suing the buyers. Like a listing agent holds an open, buyer either says they aren't working with an agent, or says, no we don't have an EBA, listing agent asks how they heard about the open, buyer says from the ad, or the sign (never mentions "their" agent at all in fact.) Listing agent writes offer, offer is accepted, then buyers "agent" steps in and says, woh nellie, their "my" buyers, where's "my" money, and listing agents says, uh, dude, no way. I was procurring cause for the transaction, and shows "buyers" agent records in regards to transaction, like NOT HAVING AN EBA with the buyers.

Why would somebody sue the buyers? They weren't under a contract w/the agent. THERE WAS NO EBA. I don't understand that at all. And no, giving a buyer client a stack of cards to hand out if they visit open houses does not mean they are "working" with an agent. I personally wouldn't mess w/a buyer that handed me a card, or dropped a name, but didn't have an EBA, because I have a little respect for the other agents out there, but there are agents that don't give a *insert your favorite explative here*, if there's no EBA.

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#69957 - 05/13/05 03:59 PM Re: Buyer_Agreements
Guest
Unregistered


Katie,

Thanks so much for explaining this to me, although I am still confused or I did not explain myself very well.

My intention is to get the buyer to sign a EBA so they know I will be representing them. I was told to use this everytime to insure I was the Agent that got the comission if the buyers decided not to be loyal to me and go find another Agent to help them, or another Agent scooped them up right from under me.

Now, when I spoke to other Agents about this they said a EBA will not insure you receive the comission any how, I thought that is what EBA was for, and that is where the suit comes in, if they do not pay you the comission that is owed to you, you sue them......I am going to ask on the other board.

Thankyou so much for the time you took to answer my question.

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#69958 - 05/16/05 03:35 PM Re: Buyer_Agreements
Jade456 Offline
Member

Registered: 09/10/04
Posts: 122
Loc: Las Vegas, Nevada
My wife's team uses them for buyers that fly in from out of town. If they don't sign it, they are not taken out to see property.

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#69959 - 05/17/05 02:03 PM Re: Buyer_Agreements
Kthor Offline
Member

Registered: 05/16/05
Posts: 100
Loc: CA- East Bay
first when you meet clients, explain to them the Value of your service. etc....then tell them they have to sign this buyer/broker agreement.
if they didn't sign the agreement, then your value to your clients is next to nothing.
Walk away if they don't want to sign. it's better
to go to the next prospect than waste your time
to some sob client who's gonna play around with you and waste your time
_________________________
Find Berkeley Real Estate and Homes For sale, Search MLS

Find Places to visit in California and Information

Foreclosures

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#69960 - 05/19/05 06:07 AM Re: Buyer_Agreements
GA Peach Realtor Offline
Member

Registered: 02/28/05
Posts: 21
Loc: Atlanta
I don't use them either and I only work with Buyers and I have lost 3 so far out of 3 years...Let them know up front this is how you make your money and if the want to play games find another realtor...Just in a professional kind of way smile
_________________________
Nikki Johnson
"Your Success is Our Success!"
678-508-3878
www.TheNikkiJohnsonTeam.com

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#69961 - 05/27/05 09:57 PM Re: Buyer_Agreements
Guest
Unregistered


It was explained to me that the Buyers agreement can be explained to the client like this : Mr/Mrs buyer if I take you to this property with out this form signed I will not be able to offer you my expertise as I could get sued for implied representation (making a statement against the seller, who is paying the commission). However, If I am working for you, I can give you the benefit of my knowledge.
[URL=http://www.nwnjhomefinders.com]www.nwnjhomes.com

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#69962 - 06/04/05 08:25 PM Re: Buyer_Agreements
Duncan Pollock Offline
Member

Registered: 06/28/04
Posts: 148
Loc: Ontario, Canada
I remember what one of the first Gurus I listened to said regarding loyalty.
"How do you get it?" he asked.
"Earn it?" we wondered. "No," he responded.
"Deserve it?" we went on. "No," he demurred.
"How then?" we asked him.
"Simple," he explained. "You ASK for it."
In other words, from the get go you tell a prospective buyer that you intend to work for them and to help them get, as it were, "the most house for the money" as opposed to the "most money for the house" (which is what a listing or sub agent is going to try for). Your total commitment is to their best interests, no one else's. Not a seller's, not a listing agent's, not a sub-agent's. Just theirs. You will, in fact, do "whatever it takes" to find them the one right home. No limit on time, no limit on the number of houses, no limit on effort. Instead, as much time and effort as they require, with no hesitation or complaints whatsoever or ever from you.
In a word, your wish is to treat them as a CLIENT and to serve them to your utmost ability.
And the cost to them for all this? Just one simple, single thing that isn't going to cost them a dime -- and stands a good chance of saving them money (because you're going to help them pay as little as possible for the house you find for them). And what is it? Loyalty!
They can go to any open house they want. They can call up their own on whatever listings they see or happen to notice while driving by. Or they can ask you to get the information for them as often as they wish. Indeed, they can do whatever they choose to do EXCEPT for one thing: when they are ready to make an offer, they let you and you alone be the agent that draws it up, presents it, negotiates it, and -- by this simple, straightforward, but undeviating means -- allows you to get paid for what you've done.
You need to believe this. You need to demonstrate it. You need to live up to the truth of it. And all it really requires is a handshake or a nod of the head.
You can, if you wish, get them to sign a Buyer Agency Agreement, but it isn't necessary if you get your message across. Nikki lost no more than three people in three years and I've beaten her by losing only two. But neither she nor I have ever needed a signature to ensure loyalty. Instead, we do what the Guru advised.
We ASK for it!

Duncan
_________________________
Acts as an Exclusive Buyer Broker for residential and non-residential properties in Canada's Niagara Peninsula.

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#69963 - 06/04/05 11:20 PM Re: Buyer_Agreements
Dee in Austin Offline
Major Contributor

Registered: 12/03/04
Posts: 2198
Loc: Austin, TX
Here is what I do. Texas may be different than your state. Agents here have a duty to disclose to the seller until a buyer agrees orally or in writing that you represent them. I normally just work with investors and sellers, but have picked up beginner investors lately.

When I first meet a buyer:

1. I explain that, by law, I must explain the "information about broker services" notice, which discusses types of agent representation.

2. I tell the buyer to keep in mind that I do not represent them because until they have hired me. I hand them a sheet that explains what I can and cannot do until they hire me.

3. I explain that when we see the property, I cannot offer advice, etc. and that they should not tell me anything that they would consider confidential because I still have a duty to the seller.

4. I then tell them that we can look at houses today, but to keep what I said in mind. If they'd like to hire me after today or put in an offer, I've included the form they'd need to complete.

I like the idea of giving the person a chance to get to know me before we sign. So far, it's worked fine. They already know they need to sign the contact and they're prepared to move to the next step. So far, I've had luck with us finding houses on the first shot, but if we didn't find a house they liked, I'd basically tell the buyer that if they'd like to see additional homes, that would be great. All they need to do is hire me.
_________________________
Dee Copeland, ABR, ASR, CRS, e-PRO, GRI, SRES
Broker-Associate, Keller Williams Realty
http://www.CopelandGroupRealty.com
http://www.TexasRealtyBlog.com

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#69964 - 06/11/05 08:02 AM Re: Buyer_Agreements
Mary Ellen in Georgia Offline
Member

Registered: 06/09/05
Posts: 39
Loc: southwest Georgia
This is all very enlightening...

I have been a "buyer" and a "seller" but never a "representor"... well, i will be soon (just passed my exam) - i guess i am writing b/c it is amazing what is ASSUMED by a buyer who is still a customer - UNLESS the agent explains the facts!!

I can recall a few times purchasing when i assssssumed i was being represented, when in fact i was not - this led to confusion on my part and in one situation paying too much for a property, only to realize the fact a few years later when listing....

i plan to draw from my own experience of having suffered the consequences $$$$ - when not having signed a EBA. I am learning so much on this website - it is giving me the confidence i will need to get going - thanks for listening.))

..... still, i like your advice Duncan, on boldly going in to the relationship and helping the buyer to define it - for the best results for all that are involved!! with that said - i plan to see how this works (at first, hopefully as a rule) and use "implication" as an aggreement.) thanks!!

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#69965 - 06/25/05 07:34 PM Re: Buyer_Agreements
RealtorBarbaraT Offline
Member

Registered: 06/25/05
Posts: 452
Loc: Wantagh, NY
I just got my CBR designation and it opened my eyes. Before this I was giving info away. Not anymore. I tell you one thing, all of your doubts and questions are answered when you take this course. I am no longer wasting my time with people who use us for info and then go buy with someone else!
_________________________
Century 21 American Homes
http://newhorizonsrealtyteam.com
http://www.wantaghrealtorbarbaratretola.com

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#69966 - 06/25/05 07:40 PM Re: Buyer_Agreements
Dee in Austin Offline
Major Contributor

Registered: 12/03/04
Posts: 2198
Loc: Austin, TX
Congrats, Barbara. When you take CRS or GRI courses on buyer representation, it really answers a lot of these questions.
_________________________
Dee Copeland, ABR, ASR, CRS, e-PRO, GRI, SRES
Broker-Associate, Keller Williams Realty
http://www.CopelandGroupRealty.com
http://www.TexasRealtyBlog.com

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#69967 - 07/01/05 09:52 AM Re: Buyer_Agreements
altarealtor Offline
Member

Registered: 01/09/05
Posts: 390
Duncan, that was a fine post indeed. Buyers agreements are appropriate for specific situations, such as the mentioned fly in on a relocation. Misused however, will fuel the publics' mistrust for Realtors. Buyers agreements IMHO are a tool of the skilled, not the masses.

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#69968 - 07/01/05 02:32 PM Re: Buyer_Agreements
RealtorBarbaraT Offline
Member

Registered: 06/25/05
Posts: 452
Loc: Wantagh, NY
I have a real different take on it but I do think if you want to practice Buyer agency, then you must get your designation.
_________________________
Century 21 American Homes
http://newhorizonsrealtyteam.com
http://www.wantaghrealtorbarbaratretola.com

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#69969 - 07/01/05 02:36 PM Re: Buyer_Agreements
RealtorBarbaraT Offline
Member

Registered: 06/25/05
Posts: 452
Loc: Wantagh, NY
I do not agree, I think you are always under obligation to the seller unless you become a buyer agent to the buyer customer (thereby making them the client instead of the seller). Otherwise you are violating your fiduciary duties to the seller, your real client.
_________________________
Century 21 American Homes
http://newhorizonsrealtyteam.com
http://www.wantaghrealtorbarbaratretola.com

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#69970 - 07/04/05 08:06 AM Re: Buyer_Agreements
Jim Lee Offline
Major Contributor

Registered: 07/01/99
Posts: 4785
Loc: Knoxville, Tennessee, Knox Cou...
Quote:
Originally posted by RealtorBarbaraT:
I do not agree, I think you are always under obligation to the seller unless you become a buyer agent to the buyer customer (thereby making them the client instead of the seller). Otherwise you are violating your fiduciary duties to the seller, your [b]real client. [/b]
That may be true where you are but it is not true in all states Barbara.

In Tennessee for example, unless you have a signed agency agreement with either a buyer or a seller you are nobody's agent and not under any obligation to either party except to follow the real estate commission's regulations regarding duties to consumers and the Realtor's Code of Ethics.

Tennessee calls that status "facilitator", other states call it "transaction broker" and maybe there are other terms. Whatever the label it does not involve any fudiciary duties to a buyer or seller unless mandated by law.

We have "designated agency" in Tennessee which makes only one agent in a company have fudiciary duties to either a buyer or seller client and you have to have a written agreement with either to be anyone's agent.

As an example one agent in my company can be the "designated selller's agent" and another can be the "designated buyer's agent" with full fudiciary duties to both AND the broker is not a dual agent in this case.
_________________________
Jim Lee, REALTORŪ, CRS, ABR, e-PRO
[url=www.KnoxvilleHomeCenter.com]www.KnoxvilleHomeCenter.com[/url]
[url=www.KnoxvilleTennesseeRealEstateBlog.com]www.KnoxvilleTennesseeRealEstateBlog.com[/url]
I am not an attorney & I am not giving you any legal advice.

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#69971 - 07/20/05 06:51 AM Re: Buyer_Agreements
Irene Morales Ward Offline
Member

Registered: 06/12/05
Posts: 68
Loc: Northern Virginia
But neither she nor I have ever needed a signature to ensure loyalty. Instead, we do what the Guru advised.
We ASK for it!

Duncan [/QB][/QUOTE]

I agree wholeheartedly with your advise and philosophy. That is precisely the kind of explanation that gets my clients committed to me. Almost 100% of my clients are referral so explaining to them how I do business and what I expect from them in return is very simple. If you don't explain how you work you can't blame the customers for not understanding the implications of using multiple agents.

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#147800 - 06/13/07 03:24 PM Re: Buyer_Agreements [Re: Duncan Pollock]
Dave Skitz Offline
Member

Registered: 06/13/07
Posts: 51
Loc: New Mexico
Originally Posted By: Duncan Pollock

...They can go to any open house they want. They can call up their own on whatever listings they see or happen to notice while driving by. Or they can ask you to get the information for them as often as they wish. Indeed, they can do whatever they choose to do EXCEPT for one thing: when they are ready to make an offer, they let you and you alone be the agent that draws it up, presents it, negotiates it, and -- by this simple, straightforward, but undeviating means -- allows you to get paid for what you've done...

How do handle this type of situation, if they're working with another agent in a similar fashion?

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#147867 - 06/13/07 07:38 PM Re: Buyer_Agreements [Re: Dave Skitz]
Jade456 Offline
Member

Registered: 09/10/04
Posts: 122
Loc: Las Vegas, Nevada
Good question Dave. I'm guessing one agreement with supercede another.

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#148572 - 06/16/07 03:06 PM Re: Buyer_Agreements [Re: Jade456]
Pikes Peak Offline
Major Contributor

Registered: 12/15/04
Posts: 2799
Loc: FL
"I'm guessing one agreement with supercede another."
If they have signed 2 agreements to pay the agents, they could owe 2 commissions.

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#148693 - 06/17/07 12:31 PM Re: Buyer_Agreements [Re: Pikes Peak]
Dave Skitz Offline
Member

Registered: 06/13/07
Posts: 51
Loc: New Mexico
Sorry, I guess I didn't state my question properly. Referring back to Duncan's post: "...Indeed, they can do whatever they choose to do EXCEPT for one thing: when they are ready to make an offer, they let you and you alone be the agent that draws it up, presents it, negotiates it, and -- by this simple, straightforward, but undeviating means -- allows you to get paid for what you've done..." How do handle this situation, if the they're working with another agent(s) without having signed an agreement with either you or the other agent(s)?

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#153075 - 07/05/07 08:13 AM Re: Buyer_Agreements [Re: Dee in Austin]
Leighlee Offline
Junior Member

Registered: 06/24/07
Posts: 5
Hi

I was reading your post, and I was wondering, could you share with us what you put on your list of services that you can not provide to the prospective buyers?

Thank you
Leighlee

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#154465 - 07/10/07 04:10 PM Re: Buyer_Agreements [Re: Leighlee]
MrsSea Offline
Member

Registered: 07/09/07
Posts: 258
Loc: Washington, DC
Ok, I know this was covered I think on my first day of class..but Imma ask again anyhow.


I have a client, we have an agreement, could I tell her that if she sees a home/condo elswhere with a different realtor (say they work for Remax) and she REALLY wants that one (and I work for Coldwell Banker) to let me know... how does that work....she's loyal and tells me "I want that home, what can you do to make a deal?"


Edited by MrsSea (07/10/07 04:11 PM)

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#154771 - 07/11/07 11:37 AM Re: Buyer_Agreements [Re: MrsSea]
rwilson99 Offline
Member

Registered: 09/04/05
Posts: 479
Loc: Tampa, Florida
You cover that when you complete your buyer agreement...

Mr./Mrs. Buyer

There are ostensibly two rules for you with this agreement.

1. I get to show you the property, if you see something let me know and I'll arrange the showing, OK?

2. I get to write the contract, after all if the seller's agent writes the contract, I don't get to protect you're interest, make sense?

You will need to trade a little bit of instant gratification for a higher level of service, does that sound fair?

Super... I need your driver's license so we can complete the paperwork.
_________________________
Robert Wilson
Keller Williams Tampa

I am not a laywer, and I can't even spell very well.

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#158228 - 07/25/07 09:02 PM Re: Buyer_Agreements [Re: Guest]
Devil's Advocate Offline
Veteran Member

Registered: 01/03/05
Posts: 538
Loc: Ontario, Canada
If applicable, study up on agency law and then be in a position to explain to the prospect the difference between a fiduciary relationship and a non-fiduciary relationship and the advantage and disadvantage of both relationships. An intelligent consumer will quickly see the difference if explained to them right and if they are not willing to engage your service, then don't give then any.

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#159539 - 07/31/07 08:44 PM Re: Buyer_Agreements [Re: altarealtor]
rich1mck Offline
Member

Registered: 07/13/07
Posts: 246
Loc: Port St Lucie, Florida
Excellent post Duncan!
_________________________
Ignorance is Bliss...Stop being Blissful.

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#166844 - 08/30/07 04:09 PM Re: Buyer_Agreements [Re: Guest]
Bella Offline
Member

Registered: 08/29/07
Posts: 30
Loc: Maryland, USA
This could lead to many commission disputes (procurring cause) and be costly to all agents involved thus must be avoided.
If buyers are hesitant to sign the agency agreement, inform them that this is your office policy. Further, you can explain in detail that they have the right to cancel the agreement if disatisfied with your services. That should eliminate any discomfort or concerns unless they are not serious about buying.

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#166862 - 08/30/07 05:40 PM Re: Buyer_Agreements [Re: Bella]
Pikes Peak Offline
Major Contributor

Registered: 12/15/04
Posts: 2799
Loc: FL
"If buyers are hesitant to sign the agency agreement, inform them that this is your office policy."

If it really is not office policy, it could be perceived as discrimination and land you in different hot water.

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#167343 - 09/02/07 11:53 AM Re: Buyer_Agreements [Re: Duncan Pollock]
Devil's Advocate Offline
Veteran Member

Registered: 01/03/05
Posts: 538
Loc: Ontario, Canada
Locally: Briefly stated and to the best of my recollection, agents locally are required to disclose and document in writing the various types of agency relationships available to the consumer and explain the difference between a fiduciary relationship and a non-fiduciary relationship, such as when acting as subagent of the Listing Broker and/or opposing party, or in a duel agency relationship, or when representing multiple clients in the same transactions, and of course last but not least, there is a customer relationship agreement, wherein the customer acknowledges that they are without representation and are self-represented, the purpose and intent of this form, being to safeguards the agent against allegations and liability for a breach of his/her fiduciary duty, arising from a plaintiffs claim of implied agency.

The receipt of all disclosures are acknowledged by the consumer and based upon their informed consent, they are able to chose the type relationship they desire.

A (local) Buyer broker Agreement, I believe entitles the buyer broker to the agreed upon compensation, if the buyer purchases a property , regardless of howsoever and by whomsoever effected during the term of the agreement

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 .

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#382041 - 07/06/11 04:25 AM Re: Buyer_Agreements [Re: Guest]
Florida Girl Offline
Member

Registered: 07/06/11
Posts: 10
Loc: Florida
I often get a buyer to sign a "Transaction Broker Disclosure" at first meeting. I explain it's not a contract. This is my mental preparation for the buyer; getting him used to signing stuff for me. Later I will get an EBBA if I spend a lot of time with him.

At time of making an offer, I ALWAYS get them to sign an EBBA (Exclusive Buyer Brokerage Agreement). This protects my commission. By the way, our EBBAs say that the commission is earned at contract signing... not at closing.

I have a friend who has been in real estate for years. She said she has worked for brokerages that required EBBAs. I asked her once how she got them signed. She said her company didn't allow her to transport anyone in her car without it. And if they didn't sign one, or balked, then she KNEW they were not serious buyers (aka "qualified buyers"; aka "ready, willing and able").

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#394962 - 11/18/11 06:02 AM Re: Buyer_Agreements [Re: Guest]
Leon FS Offline
Member

Registered: 11/18/11
Posts: 36
Loc: WA
I don't understand buyer's agreements. Wouldn't it be in the best interest of the buyer to be able to fire the agent at any time?

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#395231 - 11/20/11 09:01 PM Re: Buyer_Agreements [Re: Guest]
Home Seller Guru Offline
Member

Registered: 10/02/09
Posts: 279
Loc: Salt Lake City, UT
They still can fire the agent at any time. I don't know any agent that would force someone to work with them if they really didn't want to. That is especially true if a buyer called the agent's broker and said they want out - they would probably have a letter of release within 15 minutes.

The agent, however, does have a right to protect themselves. If I have educated a buyer on the buyer process, educated them on the market conditions, researched areas and current selling prices, found and shown a house to that buyer, for them to go around my back to purchase that house is very wrong. This is how I make a living. A vast majority of buyers are moral and ethical and realize this so it's rarely a problem.

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