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Gary Smith, Real Estate Pro in Michigan

Real Estate Agency Disclosure? There are always questions from consumers obviously lacking knowledge of

Asked by Gary Smith, Michigan Mon Feb 4, 2008

Buyers Agency. How do you approach Buyers Agency with Anonymous Internet Surfers?

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Answers

12
Hi Gary,

I first ask if they are working with a Realtor?
If the answer is No, then I explain briefly Buyer Agency as I don't want to interfere with an Agency Relationship.
I have the Michigan Disclosure on my web site,
When we meet I go over that first and tell them it is State Law to disclose the different ways they can be represented in Michigan.
Web Reference: http://MissyCaulk.com
2 votes Thank Flag Link Mon Feb 4, 2008
I created hypertext on my homepage that instructs buyers to click and read.....and bring a copy at our first showing so I can personally explain and close them on the advantages of using a Buyers Agent.
Web Reference: http://Contact4Homes.com
2 votes Thank Flag Link Mon Feb 4, 2008
Once they start really corresponding with me - I ask them if they are currently working with someone, and if not, I let them know I would like to interview for the job as their agent.

Also, I send them a PDF copy of our state's agency disclosure brochure once we start any kind of discussion about real estate. The law in South Carolina says that we must explain agency at first substantive contact - if they are anonymous, that's not substantive contact.
Web Reference: http://www.toonpawley.com
2 votes Thank Flag Link Mon Feb 4, 2008
Thanks for such a great question Gary, I practice in MA and CT where we have very strict agency disclosure laws, and yet I had never thought about how this issue would relate to electronic communications. I'll be adding some links tonight, that's for sure!!! Our disclosures use the "substantive contact" language that others below have mentioned, but I think it is never too early to start this topic. Certainly - it may be true that what one client sees as initial explorations another might see as substantive - better safe than sorry in my book! Thanks again, Stacey
1 vote Thank Flag Link Mon Feb 4, 2008
Delaware has just changed their laws concerning Agency in June of 2007. We are now required to give a Consumer Information Statement (CIS) at the first scheduled appointment or the first showing of property, whichever occurs first. If the first contact is by fax or electronic transmission, then the CIS must be sent with the fax documents or the electronic transmission information. The CIS explains the things a REALTOR must do and those items that a REALTOR may do. It gives the consumer definitions of a buyer's agent, sub agent, and a dual agent. If you would like a copy, simply email me at shirley@jacklingo.com. Hope this helps.
0 votes Thank Flag Link Wed Apr 23, 2008
Michael, I agree, for the first meeting they must come to the office. I learned from that mistake several years ago. I see California includes the "...you should from the outset understand what type of agency relationships or representation you wish to have with the agent..."

Jed, I don't think the agent2agent forum is meant to develop agency relationships between agents. I think its more to show consumers what type person they are dealing with.

As to Disclosing agency relationships at an Open House, I go over the Agency Disclosure and Buyers Agency, for those without an agent, at the door.
0 votes Thank Flag Link Mon Feb 4, 2008
I think this might be a question which is geographic in scope and pertaining to Michigan's State Laws. We don't have sub-agency in California but I belive it exists in other states. However, I do belive once you begin any "counseling/advice" conversations you are creating an agency which is one more reason they need to COME TO THE OFFICE!!
0 votes Thank Flag Link Mon Feb 4, 2008
Do you think we are creating an agency relationship by answering these questions? I'd like to hear form you on that.
I feel it's like talking at an open house and I don't need to disclose agency unitl at the latest when we start to write something. I have to admit that agents here are just starting to use buyers agency contracts.
0 votes Thank Flag Link Mon Feb 4, 2008
Jed Lane; Fog…, Real Estate Pro in San Francisco, CA
MVP'08
Contact
Brian, That's a good idea. I don't like anyone to sign paperwork without letting them read it first. Nice website BTW.
0 votes Thank Flag Link Mon Feb 4, 2008
While I have them on the phone, I obviously ask if they are working with someone...if not, I ask them to pull the form up from my site prior to us looking at homes.....print it and bring it with them. I would not expect someone to actually take the first step of reviewing this document prior to doing a home search on my site. I just think having the form available within the homepage does make their job easier to find the document. With that said, the paperwork is only paper and ink without explaining face to face what it does mean and what it does not mean to the relationship. Thanks to all for all the good advice!
Web Reference: http://Contact4Homes.com
0 votes Thank Flag Link Mon Feb 4, 2008
Brian & Missy, I think having the form available on your website is a good way to allow people to view them. I also include a link to several forms. This only works for those profile types that enjoy reading. Someone that only reads headlines would not be interested.
0 votes Thank Flag Link Mon Feb 4, 2008
Julie, I read so many questions from buyers on Trulia where they either fail to mention Agency Disclosure or do not remember signing the paperwork. Perhaps you and I are the minority in emailing a copy.

For those that do not know what Agency Disclosue entails, I've attached the Michigan version below.
0 votes Thank Flag Link Mon Feb 4, 2008
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