I'm looking around DFW for context.

The last several houses people in my family have bought (college station, Waco, Stephenville), there was NOT an exclusivity contract with the agent. The agent I've been in contact with the last week is asking me to sign one. Is that normal? Is that a red flag?

Run.

I sure as hell wouldn't...

We signed one with our realtor, but it was an exclusivity agreement on houses we toured with him. Basically we couldn't have him show us a house, then cut him out to negotiate a deal with the seller separately. We could have left him any time other then that.

At Red Pear Realty, we don't ask our buyers to sign buyer rep agreements with them. We feel very confident knowing that our clients will work with us due to our split commissions. As for listing agreements, that's actually required by TREC.

I had realtor in DFW that when we went to put an offer on a house asked us to sign one. She said her broker wanted them to get them signed and dinged their commission if they weren't signed. She said she never asks folks to sign them until they get to the offer stage because that is when the broker starts checking the paperwork.

She said that she was fine if we didn't want to sign. We went ahead and signed it. She back dated it so that it wasn't technically enforceable anymore but let her check the paperwork box.

I don't make my clients sign one for buying. Some brokers want their agents to do it so they don't get screwed on commissions, but think its such a small chance at that.

I have my Buyers sign the representative agreement when we are submitting an offer. Without it, by TREC rules, I am representing the Seller.

I do strike out the statement that requires the Buyer to pay my commission if the listing agent refuses to pay.

Does TREC have a promulgated buyer representation agreement?

Quote:

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No. A buyer representation agreement is a private contract between a real estate broker and a buyer and is not promulgated or regulated by TREC. You should consult with a private attorney. The Texas Association of Realtors (TAR) provides certain forms to its members. If you are a member, TAR may have a form that fits your needs.

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TREC rules do not state that you must sign a Texas Association of Realtors (essentially a labor union) form in order to have a client relationship. I'll let Felipe find and post good link on the TREC website on this subject.

The vast majority of folks that we help from TexAgs are really good people but there are unfortunately some not so good people out there. This is why some agents use a buyer rep agreement from TAR. I had an Aggie realtor who does not work with us tell me that he took a couple to see something like 12 or 15 houses this past weekend, and then on Monday another agent called him to ask follow-up questions about all those houses. Essentially the prospective buyers and agent used this other agent to do all their showings that weekend, and then were going to cut him out of the offer they were about to make. Situations like that are why Buyer rep agreements exist.

I don't use a Buyer Rep agreement. I'd much rather my client shake my hand than sign something they probably don't even read.

Red Pear Realty said:

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TREC rules do not state that you must sign a Texas Association of Realtors (essentially a labor union) form in order to have a client relationship. I'll let Felipe find and post good link on the TREC website on this subject.

The vast majority of folks that we help from TexAgs are really good people but there are unfortunately some not so good people out there. This is why some agents use a buyer rep agreement from TAR. I had an Aggie realtor who does not work with us tell me that he took a couple to see something like 12 or 15 houses this past weekend, and then on Monday another agent called him to ask follow-up questions about all those houses. Essentially the prospective buyers and agent used this other agent to do all their showings that weekend, and then were going to cut him out of the offer they were about to make. Situations like that are why Buyer rep agreements exist.

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I just don't understand why people are this ****ty.

Sea Speed said:

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Red Pear Realty said:

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TREC rules do not state that you must sign a Texas Association of Realtors (essentially a labor union) form in order to have a client relationship. I'll let Felipe find and post good link on the TREC website on this subject.

The vast majority of folks that we help from TexAgs are really good people but there are unfortunately some not so good people out there. This is why some agents use a buyer rep agreement from TAR. I had an Aggie realtor who does not work with us tell me that he took a couple to see something like 12 or 15 houses this past weekend, and then on Monday another agent called him to ask follow-up questions about all those houses. Essentially the prospective buyers and agent used this other agent to do all their showings that weekend, and then were going to cut him out of the offer they were about to make. Situations like that are why Buyer rep agreements exist.

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I just don't understand why people are this ****ty.

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MONEY

Not just money though, someone just pushed back on releasing our earnest money even though it turns they didn't have a freaking deed to the property. They weren't going to get that money either way.

I don't think it is a red flag, just like it isn't necessarily a red flag to the agent that you wont sign it. I would say, be 100% honest with your agent. It is a 2 way street. If you are 100% committed to using this agent tell them that and give them the reason you don't want to sign it. On the same note if you are just going to call another agent and use them because you want to see a house at 3pm on a Saturday and the agent has a family activity they have to be at, be honest with them about that too. Basically you have to have a "define the relationship" talk with your agent. Do you actually want them to be YOUR agent or do you just want them there to open doors to houses. Either way is ok as long as everyone understands. So many times clients expect agents to be available at all times of the day or night and want 100% commitment from an agent but they are not willing to give that same commitment on the other end. As long as everyone is upfront and honest then everyone can decide if they want to continue the relationship.

Ok agents…Without a buyer's rep agreement, who do you represent?

Here is some good info from the Texas Realtors Website

Does the law require a broker to have a written representation agreement to act as someone's agent?
No. A relationship between a broker and a client can legally exist without a written document. However, there are four good reasons why a broker-client relationship should be in writing, whether it's with a buyer, seller, landlord, or tenant:
1. A broker cannot sue for a commission unless there is a written agreement signed by the party agreeing to pay that commission.
2. If office policy permits a broker to act as an intermediary (the broker has a broker-client relationship with both the seller and the buyer in the same transaction), then the broker must obtain the written consent of each party and it must state who will pay the broker. The Texas REALTORS buyer's representation agreements and listing agreements include the necessary written consents and other statutory requirements for a broker to act as an intermediary.
3. Written agreements between a broker and his client help ensure that all parties have mutually agreed on the terms of representation.
4. Article 9 of the Code of Ethics requires that REALTORS, for the protection of all parties, assure whenever possible that all agreements related to real estate transactions are in writing.

That's great info. What does the IABS state?

Are you talking about another form that the state of Texas and TREC do not require to be signed?

I am. It does not have to be signed. It does have to be presented. What does it state?

OK thanks. Just wanted to make sure we were still talking about forms that do not need to be signed.

We are. My question stands.

Know1 said:

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Ok agents…Without a buyer's rep agreement, who do you represent?

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Without a Buyer's Rep Agreement (either written or oral), a REALTOR represents the Seller.

I think folks often get confused about the agreement. There is no standard form, and the agreement is not in place to "lock in" a buyer. It can have that application, but that is not the intent. Unfortunately some agents use it this way; a huge disservice to their clients causing many to view the agreement as a "red flag" . The intent of the agreement is to establish an agency relationship between the buyer and the agent/broker.

Without a written agreement the agent represents the seller. The IABS (Information About Brokerage Services) does not expressly spell out the ramifications of an oral agreement. I'm no attorney, so I'll let them weigh in on that. but my understanding is that an implied agency relationship (one that is established by ones words or actions that would lead a buyer to believe you are representing them) does not absolve you of your legal obligations to the seller....certainly a sticky situation that can be avoided by a written agreement.

Since there is no promulgated form, you can use any form of agreement you like...without one you represent the seller as a sub agent. My guess would be that the fine folks at Red Pear use some kind of form that, while it may look very different than others who use forms from their association or their own attorney, still establishes the proper representation to satisfy the obligations of a REALTOR.

This relationship should be discussed in detail before you get started. All expectations/obligations should be discussed and documented. If you don't trust the person enough to enter into a contract with them or if the terms are unacceptable to you....find someone else to work with. That's the great thing about real estate...there is always someone out there that will meet your needs.

Agree with this. There is not a good reason to forgo a buyer rep agreement. When I was active, I never operated without one in place. I never had any issue having them signed and if I did, it was because I was not doing my job well enough to educate a customer on their benefit.

As with allot of things with TREC they often times like to leave things ambiguous. The IABS says

"The broker becomes the buyer/tenant's agent by agreeing to represent the buyer, usually through a
written representation agreement."

So not having a signed agreement doesn't necessarily mean you represent the seller and are acting as a subagent. I think it would be better for everyone if it did say that though. Page 10 of the contract does have an area when the "other broker" is listed and you check a box that says they are representing the buyer or acting as a sub agent. So in theory that could constitute an agreement, but again TREC has that as only one of two pages on the contract the buyer and seller neither sign or initial which I would think could lead to even more confusion.

I'd love to hear an attorney chime in on this. Oral agreements and how they would be enforced in this specific instance. Again....my question would be does implied agency absolve you of your responsibility to the seller and how?

warreng said:

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As with allot of things with TREC they often times like to leave things ambiguous. The IABS says

"The broker becomes the buyer/tenant's agent by agreeing to represent the buyer, usually through a
written representation agreement."

So not having a signed agreement doesn't necessarily mean you represent the seller and are acting as a subagent.

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If you are speaking about Texas, then read the IABS again. In Texas, without a buyer rep agreement, you do not have an agent in any assumed or contracted capacity. That agent is a sub agent of the the seller. It's explicitly stated so.

There is a lot of info available to an agent on the MLS. A lot of it you will never be aware of without a buyer rep agreement.

There just isn't a reason not to have A buyer rep agreement in place if you are a serious buyer.

I just copied and pasted this directly from the IABS.

"The broker becomes the buyer/tenant's agent by agreeing to represent the buyer, usually through a
written representation agreement."

I'm just saying it says "usually" not always

Check further down…

AS SUBAGENT: A license holder acts as a subagent when aiding a buyer in a transaction without an agreement to represent the buyer. A subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first.

you guys are talking in circles.

the point is, you can establish an agreement with a buyer with the BRA or some other form of agreement.

I always just did a BRA for the particular property we were offering on, as my broker required it.

But the question was if there isnt a signed buyers rep agreement does that automatically make them a sub agent. The answer is no. The IABS says the agreement is "usually in writing" which means it usually is but not always meaning it is possible to represent a buyer without having something in writing. The Texas Realtor Website says

Does the law require a broker to have a written representation agreement to act as someone's agent?

No. A relationship between a broker and a client can legally exist without a written document.


All that being said, you should have a signed agreement as it removes any confusion, but based on everything else it looks like it is at least POSSIBLE to have an agreement not in writing.

So if the buyer doesn't sign an agreement then technically they represent the seller, why do sellers not go after buyers agents more often for not looking out for their best interest?

practically, the only time this question/issue would arise is if there was a legal dispute about the commission.

Under normal circumstances, the seller would not be privy to the BRA as it's between the buyers agent/broker and their clients.

Agents that don't have a representation agreement are volunteers. Volunteers don't get paid. No agent is trying to take advantage of you. The only way they make money is through a transaction. Agents are reasonably just trying to have protection in the deal. Buyers pay the commissions the majority of the time.