an exclusive Buyer's Representation Agreement. Any concerns with this?
My Realtor asked me to sign...
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Last: 3 yr ago by jja79
Not uncommon, but I think the classier agent approach is not to. If you have to, limit the time and geographic scope as much as possible. Carve out any houses you saw before engaging them or brought to them. Otherwise if you find a cool house on Zillow and do all the legwork, they take 3% for filling in the blanks on your TREC form.
They are a TREC requirement but I'm pretty low key early on with presenting the buyers' rep as we see if the working relationship is a good fit.
Since some agents research, prep, preview, log lots of miles before even meeting with the buyer, it's nice to know you have the buyer's commitment they are going to work with just you.
If the relationship ends up being a rough fit, I always shred the doc, no strings attached. Goal is a satisfied client. I do use the form too as a commitment on my part for accountability to document my realtor credit I give at closing to the buyer. I'm over 50 so it's good to get the gift to buyer in writing!
Since some agents research, prep, preview, log lots of miles before even meeting with the buyer, it's nice to know you have the buyer's commitment they are going to work with just you.
If the relationship ends up being a rough fit, I always shred the doc, no strings attached. Goal is a satisfied client. I do use the form too as a commitment on my part for accountability to document my realtor credit I give at closing to the buyer. I'm over 50 so it's good to get the gift to buyer in writing!
Nothing to do with being "classy". It's for the buyers agent to protect themselves and set expectations. Nobody wants to work for free.
Many brokerages will require their agents to get it filled out before submitting contract. Helps to settle disputes about representation vs subagency.
Buyer is free to request edits. I was always fine with scratching the part about buyer being responsible for commissions if seller doesn't pay, but that was me.
I know I wouldn't be mess with a buyer in this market without them at least committing to an exclusive arrangement.
Many brokerages will require their agents to get it filled out before submitting contract. Helps to settle disputes about representation vs subagency.
Buyer is free to request edits. I was always fine with scratching the part about buyer being responsible for commissions if seller doesn't pay, but that was me.
I know I wouldn't be mess with a buyer in this market without them at least committing to an exclusive arrangement.
Gift? You give a buyer credit?TXAggie4Christ said:
They are a TREC requirement but I'm pretty low key early on with presenting the buyers' rep as we see if the working relationship is a good fit.
Since some agents research, prep, preview, log lots of miles before even meeting with the buyer, it's nice to know you have the buyer's commitment they are going to work with just you.
If the relationship ends up being a rough fit, I always shred the doc, no strings attached. Goal is a satisfied client. I do use the form too as a commitment on my part for accountability to document my realtor credit I give at closing to the buyer. I'm over 50 so it's good to get the gift to buyer in writing!
Don't sign it. The best realtor I've worked with told us if you don't like my services and think I'm doing a poor job you should be able to fire me. He was great and on TexAgs
The crappy ass realtor in Pearland I signed the agreement with was fired on day 181. She sucked.
The crappy ass realtor in Pearland I signed the agreement with was fired on day 181. She sucked.
No I get it, I agree with you. OP should realize that his/her hesitation in wanting to sign is the same feeling your prospective agent has at you NOT wanting to sign. If the agent is awesome I'd negotiate and sign it. If it's just some spare who's not contributing much more than MLS and super access, meh.
Don't sign it. There are plenty of agents that will work without it it.
There are numerous reasons not to, but the biggest to me when in a major city like DFW or Houston, an agent may know a particular area like Frisco for example, it you decide to start looking in Argyle and they have zero knowledge of that area you are stuck with them.
There are numerous reasons not to, but the biggest to me when in a major city like DFW or Houston, an agent may know a particular area like Frisco for example, it you decide to start looking in Argyle and they have zero knowledge of that area you are stuck with them.
Not true. There is a specific section where you can name the area(s) where the agreement applies.
If you really like the agent, its fine to sign it. There's no reason or obligation to though and the best agents I've worked with do not request an agreement.
Well aware of that. Still doesn't change my statement.Diggity said:
Not true. There is a specific section where you can name the area(s) where the agreement applies.
how so? you would limit the area that you commit to an agent with to their "specialty". If you didn't care to use them for a new area, you would have no obligation to do so.
Certainly no obligation to sign anything, but I'm just trying to point out how the document can be used to protect both parties.
Certainly no obligation to sign anything, but I'm just trying to point out how the document can be used to protect both parties.
It's not necessary to sign an Exclusive Agreement. If the Broker/Agent shows you a house and you use them to make an offer, the Broker/Agent will seek a share of the commission to be paid to the Seller's Broker/Agent and that is accomplished in the standard TREC forms. If the home is FSBO, the Buyer Agent may want a Buyer Representation Agreement signed before helping you submit an offer. In that situation, you could limit the Agreement to that particular FSBO house.
You can also execute a listing agreement on a cocktail napkin...but it's better to define the terms of the relationship more explicitly
To your point, if there were ever an argument over procuring cause, broker for buyers agent would have no prayer without a representation agreement.
To your point, if there were ever an argument over procuring cause, broker for buyers agent would have no prayer without a representation agreement.
It sounds reasonable to me. I like my agent and he's going out of his way to show me property. He's asking for exclusivity for 6 months...
doesn't it seem kind of unprofessional to not have a contract signed?
doesn't it seem kind of unprofessional to not have a contract signed?
Even if you sign a buyer's rep agreement. You can still fire them as your agent.
EagleCamden said:
It sounds reasonable to me. I like my agent and he's going out of his way to show me property. He's asking for exclusivity for 6 months...
doesn't it seem kind of unprofessional to not have a contract signed?
I never hold the buyers hostage if they want out of the Buyers Rep sooner than the date in contract. But most of my clients are referrals, church friends, very few without some common acquaintance so they know they can trust me.
One reason I do the form too is our boss and TREC require it. Doesn't make an agent any better not asking someone to fill one out in my mind. But I don't force them signing first time out. Grow the relationship first then ask for the commitment if we are going well together.
Yes, I give all buyers a credit at closing documented with lender and title co. Over 16000 agents in the SA area so it's a way to say thanks but also as mentioned I work with a lot of military and church family and serving God with serving clients so it's a way to try and be a little generous helping folks with a little $$ during whats often an emotional and financial stressful time
Good luck in the hunt!
just for clarification, it's not required by TREC, but encouraged. Usually it's the broker who will require it (if you want to get paid that is).
This agreement is usually a good tool to see if the buyer is real or not. No since in wasting your time if they won't sign it or if they balk at the idea.
I'm a very old (Class of '65) Realtor. Been in the business for almost 52 years. I started off in the residential business, moved into commercial in 1991. I was on the executive committee of the Texas Association of Realtors when the buyer representation practice started here. It originated in California.
Prior to the buyer rep movement, I sold hundreds of properties where I legally represented the Seller as the Seller had listed their property with me. Never once did I feel that my number one obligation was to get the Seller every penny I could from the Buyer. My role was to negotiate terms which both parties were happy with. I never had any Buyers complain that I did not treat them fairly. Additionally, I did not hear of this happening with other agents.
The Buyer rep movement has, in my opinion, resulted in a situation where many transactions are hampered by the fact that agents see their role as assisting their client to either beat the Seller down in price as much as possible, or conversely, getting every cent they can from the Buyer when the agent represents the Seller.
Unfortunately, the vast majority of the potential Buyers do not know enough about how the business works to understand that they are being led down the primrose path when an agent asks them to sign an exclusive representation agreement. It sounds great when the agent tells you that he/she is going to help you get the best deal, but unless the Buyer has done enough research to ascertain that the agent is qualified, honest, and possesses integrity, then the Buyer may be signing up with someone who does not have the knowledge, experience, and honesty to do a good job.
My advice to all potential Buyers is: Check out the agents before you choose one. Just like in every other profession, there are great ones, good ones, average ones, and lousy ones..
Prior to the buyer rep movement, I sold hundreds of properties where I legally represented the Seller as the Seller had listed their property with me. Never once did I feel that my number one obligation was to get the Seller every penny I could from the Buyer. My role was to negotiate terms which both parties were happy with. I never had any Buyers complain that I did not treat them fairly. Additionally, I did not hear of this happening with other agents.
The Buyer rep movement has, in my opinion, resulted in a situation where many transactions are hampered by the fact that agents see their role as assisting their client to either beat the Seller down in price as much as possible, or conversely, getting every cent they can from the Buyer when the agent represents the Seller.
Unfortunately, the vast majority of the potential Buyers do not know enough about how the business works to understand that they are being led down the primrose path when an agent asks them to sign an exclusive representation agreement. It sounds great when the agent tells you that he/she is going to help you get the best deal, but unless the Buyer has done enough research to ascertain that the agent is qualified, honest, and possesses integrity, then the Buyer may be signing up with someone who does not have the knowledge, experience, and honesty to do a good job.
My advice to all potential Buyers is: Check out the agents before you choose one. Just like in every other profession, there are great ones, good ones, average ones, and lousy ones..
Thanks. This realtor was referred to me by one of my good friends, so he has that built in trust factor. In this one form he showed me, he said if he works as a "subagent", where no agreement is signed, technically he has to put the seller's needs first. He showed it to me in writing!
He said the agreement clearly outlines each party's role and it protects buyer and buyer's agent.
I'm going to sign it because I like the guy.
He said the agreement clearly outlines each party's role and it protects buyer and buyer's agent.
I'm going to sign it because I like the guy.
This is correct. Without agreement he is a sub agent and does not represent you. People do it all the time which is a bad idea for both parties. Like stated before, you can sign it and fire them if not happy.EagleCamden said:
Thanks. This realtor was referred to me by one of my good friends, so he has that built in trust factor. In this one form he showed me, he said if he works as a "subagent", where no agreement is signed, technically he has to put the seller's needs first. He showed it to me in writing!
He said the agreement clearly outlines each party's role and it protects buyer and buyer's agent.
I'm going to sign it because I like the guy.
I don't understand this 'don't sign it, classy agent' nonsense in the thread like realtors are trying to get one up on you. For one, I've signed enough of hose things and done enough transactions where I'm confident most brokers require their agents to get a signed agreement prior to working with them. Second, for most people, buying or selling a house is the most expensive transaction you'll ever make, I want as many terms and conditions laid out to and agreed to in writing and signed as I can practically get. Third, a home sale or purchase is completely bilateral and your decision, not your agent's. That means, you still hold all the power in the transaction. If you don't like an agent or want to work with somebody else, just be honest with the agent and say so and they'll tear up the form. It really doesn't benefit them either to hold you as a c,isn't if you say you don't want to work with them.
Having bought and sold dozens of properties in about 20 states over the last 15 years, I've never once signed a buyers rep agreement despite being asked to most times. Even my selling rep agreements have a thirty day out clause. I wouldn't sign one. A great agent will be properly motivated to find your home and get closed without one. A lazy agent will not be motivated by having one. Almost every agent is through a "good, trusted friend".....if they are "good and trusted"...even more reason not to need one. Don't hold it against the agent for asking for one, but keep looking until you find an agent that doesn't require one.
And, I've never had to fire a procuring agent. Finally, don't be a flaky buyer with your agent regardless of whether you're buying or selling or whether you have an agreement in place or not.
Keep in mind, a huge portion of the posters on this forum are real estate agents. Good ag's....but with a bent toward agents.
And, I've never had to fire a procuring agent. Finally, don't be a flaky buyer with your agent regardless of whether you're buying or selling or whether you have an agreement in place or not.
Keep in mind, a huge portion of the posters on this forum are real estate agents. Good ag's....but with a bent toward agents.
Sounds like he signed it Harley.
We'll just have to wait for the horror stories about the how lazy and unmotivated his agent became after the fact.
We'll just have to wait for the horror stories about the how lazy and unmotivated his agent became after the fact.
HarleySpoon said:
A great agent will be properly motivated to find your home and get closed without one. A lazy agent will not be motivated by having one.
I'm not an agent, broker or in the real estate business.
Nobody in their right mind would go work for somebody if the terms you gave them was 'come work for me. Nope... I won't give you anything in writing laying out terms of employment or even what you'll get paid. But don't worry... you'll get taken care of if you do real good. Trust me.' But yet in your world, for a realtor, it spells 'motivating factor.'
Respectfully, you logic is terrible. Also, remember that agreement is what makes you a client. It makes the broker and their agent contractually obligated to work in your best interest. And again... you still practically have all the power. All you have to do is tell the broker you won't be signing anything to buy or sell a house with them representing you and I guarantee you the broker is tearing the agreement up.
I'm just here for the comments from those who think it's a great idea to trust someone to be the fiduciary in one of the largest monetary transactions they will be apart of without a signed working agreement
There are many issues and some myths concerning the exclusive Buyers Representation Agreement.
Myths: You can fire the agent anytime you want. Wrong! If you sign the agreement most of the time there is NOT a termination clause that allows one to exit the agreement unilaterally. YES, in a lot of cases agents will allow it but are not required to grant it. If they ALWAYS allow termination, then have that procedure spelled out in the agreement.
I have had this type of agreement presented to me twice in the last year. No discussion was presented prior or during the package of documents to be sign. It was assumed that I would sign it without discussion. Not cool.
One was listing a property to rent. I was assumed to sign a 6 month agreement to have the agent represent me for ALL properties I owned in the local area, when I was wanting that agent to list only ONE of the properties I owned.
The second time was when I called the listing realtor to show me a property to buy. He showed it to me and mentioned another property off market that he could show me. He did and I immediately had him submit an offer as an intermediary. No problem, but in the Doc U Sign paperwork was a 6 month Buyers Agreement having him exclusively representing me on ALL properties in the locale I was looking. Remind you none of this was discussed before being presented. I asked for him to change the agreement to the specific property I was putting an offer in and he complied with my request. But had I not asked him to change it, and had the deal not been accepted, I would have been obligated to use him for any property I wanted to buy in the 6 month period.
I certainly understand that if my intention was to lock in with one realtor to find me a property that an agreement and understanding should be agreed prior to being presented the signing document. For myself when buying, I would rather deal only with the listing realtor as i have no real need for representation. Because the internet has drastically changed the task of buying a property, most of the time it is the buyer directing which properties that should be seen. NO longer the days of driving endlessly looking at properties that you have no clue of before stepping foot into it.
The other notion that you should vet your realtor sounds good but in many cases you are new to the area and you have time constraints that prevent any thorough vetting. The realtor career is littered with fly by night, part time realtors and thus sorting out the good ones over the bad ones is no easy task.
Lastly let me put a plug for the realtors. Yes, you should not work for free! It is all relationship driven. You need agreements that protect your interest, but not presented in a way to take advantage of a naive client. Most clients buy or sell a property so seldom that they are not aware of the different options of how they can sell or buy property. They rely on the professionalism of the agent to guide them through the process.
Myths: You can fire the agent anytime you want. Wrong! If you sign the agreement most of the time there is NOT a termination clause that allows one to exit the agreement unilaterally. YES, in a lot of cases agents will allow it but are not required to grant it. If they ALWAYS allow termination, then have that procedure spelled out in the agreement.
I have had this type of agreement presented to me twice in the last year. No discussion was presented prior or during the package of documents to be sign. It was assumed that I would sign it without discussion. Not cool.
One was listing a property to rent. I was assumed to sign a 6 month agreement to have the agent represent me for ALL properties I owned in the local area, when I was wanting that agent to list only ONE of the properties I owned.
The second time was when I called the listing realtor to show me a property to buy. He showed it to me and mentioned another property off market that he could show me. He did and I immediately had him submit an offer as an intermediary. No problem, but in the Doc U Sign paperwork was a 6 month Buyers Agreement having him exclusively representing me on ALL properties in the locale I was looking. Remind you none of this was discussed before being presented. I asked for him to change the agreement to the specific property I was putting an offer in and he complied with my request. But had I not asked him to change it, and had the deal not been accepted, I would have been obligated to use him for any property I wanted to buy in the 6 month period.
I certainly understand that if my intention was to lock in with one realtor to find me a property that an agreement and understanding should be agreed prior to being presented the signing document. For myself when buying, I would rather deal only with the listing realtor as i have no real need for representation. Because the internet has drastically changed the task of buying a property, most of the time it is the buyer directing which properties that should be seen. NO longer the days of driving endlessly looking at properties that you have no clue of before stepping foot into it.
The other notion that you should vet your realtor sounds good but in many cases you are new to the area and you have time constraints that prevent any thorough vetting. The realtor career is littered with fly by night, part time realtors and thus sorting out the good ones over the bad ones is no easy task.
Lastly let me put a plug for the realtors. Yes, you should not work for free! It is all relationship driven. You need agreements that protect your interest, but not presented in a way to take advantage of a naive client. Most clients buy or sell a property so seldom that they are not aware of the different options of how they can sell or buy property. They rely on the professionalism of the agent to guide them through the process.
scrap said:
Myths: You can fire the agent anytime you want. Wrong! If you sign the agreement most of the time there is NOT a termination clause that allows one to exit the agreement unilaterally. YES, in a lot of cases agents will allow it but are not required to grant it. If they ALWAYS allow termination, then have that procedure spelled out in the agreement.
Technically you are correct. However, end of the day you are the only one committing capital in the transaction so practically, this is nonsense. If you go to a broker and say look this and this happens so I'm not going to be committing a purchase to you... unless a significant amount of work has been done on particular properties by the broker and agent for you... there is zero incentive for them to not tear up the agreement. So while you are right that it isn't unilateral... since you ultimately are the only one putting up capital, it pretty much is.
And, in Texas, if you don't have that agreement, your rep technically is obligated to work for the seller... not you during negotiations.
I don't know why anybody would sign one of these. Makes no sense to me at all. My strategy is to not tie off with a particular realtor. Just call up the listing agent. You can sign up for alerts on most major websites like Zillow and get the alert the same time the realtor does. And, who is going to have more motivation to sell - a listing realtor getting 3% (if you show up with a buyer's agent) or a listing realtor getting the full commission minus the company's fees (going straight to the listing agent). The only way I would see an advantage to tying yourself to a particular realtor is if they are the one in the area that gets all the "good" listings. You might then find out about new listings faster than the general public.
More nonsense.Bonfire97 said:
I don't know why anybody would sign one of these. Makes no sense to me at all. My strategy is to not tie off with a particular realtor. Just call up the listing agent. You can sign up for alerts on most major websites like Zillow and get the alert the same time the realtor does. And, who is going to have more motivation to sell - a listing realtor getting 3% (if you show up with a buyer's agent) or a listing realtor getting the full commission minus the company's fees (going straight to the listing agent). The only way I would see an advantage to tying yourself to a particular realtor is if they are the one in the area that gets all the "good" listings. You might then find out about new listings faster than the general public.
1. An agent doesn't sell a home... a seller does.
2. A listing agent is contractually obligated to share everything with their client and do what's in their best interest.
3. Do you really think the majority of clients aren't getting all antsy and asking the listing agent to revise their fee down if the buyer has no agent? You will say well the listing agent doesn't have to... once again, a 3% spread isn't small and a seller can just say I'm not signing up for this deal unless you revise your fee down to the agent.
ATM9000 said:
More nonsense.
1. An agent doesn't sell a home... a seller does.
2. A listing agent is contractually obligated to share everything with their client and do what's in their best interest.
3. Do you really think the majority of clients aren't getting all antsy and asking the listing agent to revise their fee down if the buyer has no agent? You will say well the listing agent doesn't have to... once again, a 3% spread isn't small and a seller can just say I'm not signing up for this deal unless you revise your fee down to the agent.
ATM: Are you a realtor, been a realtor or have a family member a realtor because you only see this discussion from a realtor's perspective.
You say " All you have to do is tell the broker you won't be signing anything to buy or sell a house with them representing you and I guarantee you the broker is tearing the agreement up."
Thats big hat no cattle talk right thar! First off you should not have to tell the broker that, it should be in writing ways to terminate but there is not. Secondly, YOU can't guarantee dog doodoo. Yeah, it probably makes good business sense to do so but there is this thing called ego and emotions that just might get in the way. YOUR guarantee means NOTHING......just saying.
Many people don't have the outgoing personality to challenge the agreement since there is no termination clause written. So they just live with what they signed. They didn't think far enough ahead to consider what happens if things don't go as planned. So simply telling someone to go to the broker to tear up the agreement is not in a lot of peoples' wheel house. Just like a lot of people will not ask the waiter to take back the food because of some flaw, they live with it.
Lastly, you say "So while you are right that it isn't unilateral... since you ultimately are the only one putting up capital, it pretty much is". But, yet you know that the buyer has a goal and may be under time constraints and having to wait till the buyers contract expires might not be ideal to the goals of the client.
I'm not against buyer or sellers agreements, but TREC and the realtor industry should write them in a way that are very much slanted in favor to the agent. PUT IN THE REQUIREMENTS FOR EARLY TERMINATION and we are all good, especially since we always work with HIGHLY RECOMMENDED, TRUSTED AGENTS, right.
I always terminated them a couple weeks after closing just to be safe. You never know when things will get delayed.
Every buyer is different, every agent is different. It's a two way relationship.
Every buyer is different, every agent is different. It's a two way relationship.
scrap said:ATM9000 said:
More nonsense.
1. An agent doesn't sell a home... a seller does.
2. A listing agent is contractually obligated to share everything with their client and do what's in their best interest.
3. Do you really think the majority of clients aren't getting all antsy and asking the listing agent to revise their fee down if the buyer has no agent? You will say well the listing agent doesn't have to... once again, a 3% spread isn't small and a seller can just say I'm not signing up for this deal unless you revise your fee down to the agent.
ATM: Are you a realtor, been a realtor or have a family member a realtor because you only see this discussion from a realtor's perspective.
You say " All you have to do is tell the broker you won't be signing anything to buy or sell a house with them representing you and I guarantee you the broker is tearing the agreement up."
Thats big hat no cattle talk right thar! First off you should not have to tell the broker that, it should be in writing ways to terminate but there is not. Secondly, YOU can't guarantee dog doodoo. Yeah, it probably makes good business sense to do so but there is this thing called ego and emotions that just might get in the way. YOUR guarantee means NOTHING......just saying.
Many people don't have the outgoing personality to challenge the agreement since there is no termination clause written. So they just live with what they signed. They didn't think far enough ahead to consider what happens if things don't go as planned. So simply telling someone to go to the broker to tear up the agreement is not in a lot of peoples' wheel house. Just like a lot of people will not ask the waiter to take back the food because of some flaw, they live with it.
Lastly, you say "So while you are right that it isn't unilateral... since you ultimately are the only one putting up capital, it pretty much is". But, yet you know that the buyer has a goal and may be under time constraints and having to wait till the buyers contract expires might not be ideal to the goals of the client.
I'm not against buyer or sellers agreements, but TREC and the realtor industry should write them in a way that are very much slanted in favor to the agent. PUT IN THE REQUIREMENTS FOR EARLY TERMINATION and we are all good, especially since we always work with HIGHLY RECOMMENDED, TRUSTED AGENTS, right.
Not an agent or have close family that is... just always find the weird fascination some people have and logical leaps people take in the amount of servitude realtors should have relative to other professions that you see on this board and think there's a lot of misconceptions and not seeing the forest for the trees when you break down real estate transactions around here sometimes. You didn't say this one exactly but the guy who made the logical conclusion that realtors without agreements with their clients in place would be MORE motivated to work for you even though there's not a damn person in this thread who probably works or goes to work without some sort of pre-arranged agreement in place setting terms out for their employment and compensation is a perfect example of this.
I've done this before with an broker. Signed on with an agent, it wasn't really working out and part of that was on me, partially the agent. Wrote an email to the broker and agent explaining that the agent hadn't really met what I was looking for, listed the reasons why. The broker initially asked that I work with another one of their agents and I declined and respectfully told them a deal wouldn't get done with them representing me. The broker sent me notice of canceling the agreement 30 minutes later.
See the forest and not the trees from their perspective. They are in a highly competitive business and word of mouth matters a lot. If word gets out they are unreasonable, inflexible or unethical when it comes to rep agreements, they risk severe reputational harm in the market. It's not worth it to keep you as a client if you are unhappy, express it and can't mediate it and a broker is going to find a hell of a lot more goodwill with a client and the marketplace if they show flexibility on things like this.
Now the other side of this is I suppose you can write in specific early termination requirements if you'd like to, but you need to remember this arguably locks you in a bit more to the agreement too and NOT just the broker and actually might make walking away from an arrangement that's not working out MORE difficult when reality is, it isn't really that difficult to as it is.
So again, even with the contract being laid out as it is, practically speaking, the client still holds pretty much all the cards because they are the only one who can fund the transaction.