It's a pity that NAR cannot move to a national consensus on Buyer/Broker Agreements. If it became law or strict policy that while working with a buyer, they must sign exclusively with ONE agent, it would save tremendous heartache, resources, time, money, etc., etc., etc.
I cannot think of one subject in the past 7 years that has created more financial losses for real estate agents than the lack of having a written agreement with their 'supposed clients'. If 'all agreements in real estate must be in writing', why isn't this MOST important relationship required to be in writing?
Where do we start?
Boca Raton-Miami Beach, FL
If I represent a Seller, there is a contract. If I represent a Buyer, there is a contract. If we are to work together, there must be a complete understanding of that relationship - and what better way to solidify that understanding than to have it in a written form.
If an Agent is unsure of of the level of committment they are willing to offer a Buyer, they would not offer such an agreement, to sell a home to a buyer.
Now, it is not an ideal situation to insist or force a buyer to sign this agreement. Better to present the agreement and if there is reluctance to sign, then an Agent should continue on to either Plan A, B or C. But before we discuss this further, either always offer or never offer this contract. You should be consistent in your business practices.
Plan A: Further discuss why the Buyer is hesitant to sign the agreement, then decide if you will let them "try you out" for a day (give them a copy, with plans to sign on Day 2); Plan B: As an Agent, decide if the Buyer "qualifies" to work with you and go forward with them signing that they reject the Offer to work exclusively with you; or Plan C: Allow the Buyer work with another Agent.
In Nevada, the Duties Owed Disclosure which is a non-committal form explaining the Agent's Duties must be presented to the Buyer.
If an Agent has not presented any of the above documents to a Buyer at the first meeting, then a Buyer should interview with other Agents until they find "the right one".
I don't see what that has to do with the question at hand. I don't expect the "consumer" to have completed licensing courses, to have obtained a license, to maintain that license with continuing education courses, and to gather experience by brokering however many transactions a year for however many years.
I think it's okay to expect less of the consumer, who just wants to buy a freaking house, than they expect from us - which is a high level of professionalism, ethical and honest behavior, and an integrity that puts our professional position above our personal position.
We would never tell a seller, "you don't have to sign an agreement with me, I'll just go to work for you and if someone else finds you a buyer, well they can get paid," but we do that with buyers - "you don't have to sign an agreement with me, but if after a dozen trips to look at houses and my educating you about the market and negotiation strategies and house conditions and Heaven knows what else, you walk into an open house and decide to buy from the listing agent, that's okay because I Have Somehow Failed."
I do not insist that my Buyers sign an Exclusive Buyers agreement right away because I like to develop a relationship. When we are working together for a while then I present the form for signature.
Another option would be to have your client sign the Exclusive Buyer Agreement just for the day you show them properties which has a limited commitment for the buyer while covering you for your time should they return and purchase the property with another Realtor.
All the Best!
An Exclusive Buyer Agency Agreement demonstrates a commitment from both parties that creates, in my considered opinion, a more sound foundation on which to work together to the ultimate goal â€¦ the successful identification and purchase of a property.
In this arrangement, the Buyer is committed to the agent to get the job done (usually under specific terms and timeline) and the agent is committed to perform under those terms and guidelines.
To make a fun analogy, Iâ€™ve been married for nearly a quarter century â€¦. The more committed the parties are to each other, the harder they work and the more productive the outcome.
I think the way I handle the situation is to make it clear from day 1 that if the buyers intend to work with other Realtors their relationship with me is over.