Can a "Buyers Agent" be as effective for a buyer client as an "Exclusive Buyers Agent"?

Has anyone (that also lists property) had to explain the difference to propsective clients and what was their reaction? Or have you lost sellers who also need to buy to EBA's?

The forms of agency described both afford the client the full fiduciary and legal obligations of agent-to-client. A Buyers Agent will not represent a client in a transaction involving another client of his firm as there would be a conflict of interest, but could stilll list and sell that "same clients" property without a conflict. The Exclusive Buyers Agent will not act as a listing agent and will refer the client to another (listing) brokerage firm from which he may receive a referral fee.

So if an agent was working with a buyer, and they wanted to buy one of their agencies listings... the buyers agent would have to abstain and lose their client?

advocate1,

please reply.

Broker, Advocate1's reply would not be legal in my state of Iowa. As Appointed agents, I never, at any time, represent anyone else in my firm unless I am specifically their listing or buying agent. I am not "automatically" representing every client of my firm just because I am an agent there.

Therefore, I can be an EBA to any number of people and also be their listing agent as well. I am their EBA as they look for their new home, and their listing agent as I sell their home.

I would say, as usual, rules and variances differ per state and type of agency practiced.

"I am not "automatically" representing every client of my firm just because I am an agent there."

That's a very good point.

"Therefore, I can be an EBA to any number of people and also be their listing agent as well. I am their EBA as they look for their new home, and their listing agent as I sell their home."

This brings up another issue... can you practice Exclusive Buyer Agency without being an Exclusive Buyer Agent? I think it's a matter of semantics and that you indeed can as you described above. You are their exclusive buyers agent in the purchase of their home. I know many "EBA"'s will disagree. Any EBA's want to chime in?

I suggest to read up on what an EBA is and does:
http://www.naeba.org/

I've know what an EBA is and does... but if I'm representing a buyer on the purchase of a home... and am also listing agent on thier house.... why can't I be as effective acting as a fiduciary buyers agent as a so called "EBA"?

Because the chance of the EBA to sell his own listing is not there, but if you don't have any listings yourself, I don't see a difference in representation.

Reply to Broker - " So if an agent was working with a buyer, and they wanted to buy one of their agencies listings... the buyers agent would have to abstain and lose their client? "
Yes, Conflict of Interest, you have a fiduciary duty to your buyer client,UNLESS "all parties" to a transaction,after receiving "full and timely disclosure" of all "material facts" in writting, chose on the basis of the disclosures, make an "informed decision" to enter into a "Consentual Duel Agency Agreement". Now, under this agreement you are relieved of the "fiduciary duty" other than to treating all parties fairly, and to not misrepresent and give accounting.
But be aware that "Consentual Duel Agency" is still not without risks.

So any Buyer Agent who is working with a buyer and that refuses to collect any commission on the sale-side of the transaction that they are a party to can be considered an EBA for that transaction. Simple enough.

I know technical EBA's will disagree.

I disagree!!! See our State "Designated Broker" relationship as an alternative. Also, what if you are in a one RE company town? (p.s. other states are changing to it also)

Regualtions etc. will vary from Jurisdiction to Jurisdiction and the Real Estate Industry has and is having a problem with the Law of Agency as defined by the courts and they have tried going over the law,under it and around it, resulting in various types of (real estate described) agency relationships i.e. Consentual Duel Agency, Designated Broker,Facilator, etc. each with their own particular worded agreement concerning the terms and conditions therein and designed primarily to absolve the agent of having to comply with the Law of Agency and thus reduce the agents liability in relation thereto. As with any contract, it can be challenged and the Courts will make the final decision.

Forgive me if I'm throwing a spanner in the works, but I don't think the question of jurisdiction is a relevant one.
There's a world of difference between a Buyer Agent and an Exclusive Buyer Agent. You have to be either one or the other and you simply cannot be both. Not only that, but to be an EBA you have to work for a company that itself doesn't have any listings. You and your company work solely for buyers. The moment the chance of a listing surfaces (and your buyer client may well need to get his/her house sold), you have to gracefully but unmistakably decline. The most you can do is to refer the client to some listing agent who, you have to hope, will do the sort of job you want the client to receive. However, if you're to be really true to your EBA duty of care, you'll also not go looking for a referral from that listing agent or, if you do, you'll unquestionably advise your client of this intention and get his/her agreement to this arrangement.
The whole subject of agency is seldom properly understood, but the word "exclusive" means exactly that: you work for buyers to the exclusion of everyone else. And it doesn't matter what the locality happens to be. It applies here, there, and everywhere else.

Duncan

Duncan,

I'm going to have to disagree with you on this. I think your form of EBA is a business model that you choose and that it confuses the public when you say what you said.

There is no reason that an agent who works in a traditional agency can't be an EBA in a specific transaction if they only represent the buyer and have no interest in the seller-side.

So practicing "Exclusive Buyer Agency" and being an "Exclusive Buyer Agent" in a transaction are two different things...... one is a business model and one is a form of agency. If I'm incorrect please let me know.