DMH,

Modifying these documents is almost a certain disqualification. Our recommendation is that as you continue to pursue these types of sales that you do so through a buyer's agent representing you.

As far as, "What can we do?".....accept their terms or move on and explore other options.

Good luck

The documents we use from KCRAR are standardized. They are approved by the Kansas City Regional Association of Realtors, the Missouri Association of Realtors, and the Kansas Association of Realtors. Our attorneys review and adapt the contract docs every year. Each brokerage has their attorneys go over the docs again. We, as realtors, write only in the approved spaces. Each bank has their attorneys draw up contracts that conform to federal laws and also cover the state and local laws as much as possible. (Federal outranks state, city and county) FNMA also has attorneys that draw up their addenda to conform to applicable laws. The addenda that banks use are not generally favorable to the buyer. They are written to protect the bank. The bank, or FNMA, will not accept an altered document. Have your agent read the instructions on the site or in the email they received.

Krisan,

Thank you very much for your assistance.

Dmhfactor,

It seems that we have moved away from your original question about special addendums

Under Buyer's agency, the agent has a fiduciary responsibility to the buyer that other agents do not have. Buyers have an experienced agent using their skills to negotiate on their behalf. You wouldn't expect to have an attorney draw up a will and not pay them, right? Or negotiate a divorce settlement and then go to another attorney to have it drawn up?

To discuss the possibility of cancelling a buyer's agency agreement, a buyer needs to speak to the broker. The Broker may exclude properties that they have presented to a buyer during that agency agreement from subsequent agreements, or they may negotiate that another agent within the office work with that buyer(if it is a personality conflict).

I am not going any further with questions regarding Exclusive Buyer's Agency. I am a Realtor, and there is a Code of Ethics that I conduct my business by- so far, I have spoken in generalities, and have referenced what counsel and experience I have shared with my clients.

.
To your success,
Krisan
*DISCLAIMER* IT IS NOT MY INTENTION TO SOLICIT THE CLIENTS OF OTHER LICENSEES. ANSWERS POSTED HERE ARE IN DIRECT RESPONSE TO QUESTIONS ASKED.

Hi Krisan,

Providing a buyer's addendum to the seller's addendum makes sense to me. Like you said, buyers should not count on it to be accepted. This is just basic negotiation.

I still do not understand how the Exclusive Buyer Agency Agreement protect the buyer. It seems like signing the agreement makes the buyer liable to the 2 commissions in your example. Without the agreement, there is nothing to hold the buyer accountable to pay the agent who did not participate in the sale of the house that was bought. As an investor, we may buy the same type of house in possibly the same neighborhood. I feel that the agent who has the time to invest in making the deal happen should get paid.

What does it take to cancel an exclusive buyer's agency agreement?

HI Dmhfactor,
You certainly include an addendum, I would caution my buyers to not put any hope on it getting signed- that way, if it does, it's a good thing, and if it doesn't, buyers weren't counting on it to make/break the deal.

In regards to the Buyer's Agency agreement- it offers protection for the buyer, as well as the buyer's agent. Without an agreement, unethical agents could "poach" other agent's buyers... or undercut the agent. A buyer could be liable for 2 commissions if agent 1 shows thema house, and then agent 2 sells them another house in the same area.

Some buyers/investors and agents chose to work within a Non-Exclusive Buyer's Agency agreement- but not all Real Estate offices offer that choice.

Krisan

*disclaimer* The answers offered here are in response to direct questions, and are not intended to solicit the clients of other agents.

Krisan,

Thank you so much for responding to my questions. I feel much better now that I am not being singled out nor the listing agent is creating his/her own rule.

However, if the original addendum is left intact, we should still be able to submit a one or two line addendum that the listing agent may be willing to present. Fannie Mae can quickly read the addendum and accept or reject without much time spent on it.

On a different subject, as an investor, can we work with more than one realtor in the same area? Does the Exclusive Buyer Agency Agreement preclude this without additional cost to the buyer? Is it necessary to execute such an agreement? It sounds like a protection for the realtor for exclusivity reasons.

Thanks again.

I realized as I re-read my post that it did sound contradictory-

I meant that each bank uses addendums with their specific terms- for instance, some will charge a per diem if the buyer doesn't close on time, others will just say that they _could_ charge one.One thing that 99% say is that the seller choses the title company for buyers to close at. You are correct in saying that the addendums cover all of that banks properties.

One asset manager told me once that the reason that particular bank doesn't allow any changes to their addendums is that it would have to be reviewed by attorney's etc- and with 300-500 properties for each asset manager, that just wasn't in the company's business plan or budget. That was 1 banks answer.

In my experience, as a listing agent for several banks, they won't even sign some of our required addendums, like a company disclosure- that includes HUD. You can try anything, but it is my opinion that they won't sign, so whatever you write won't be binding.

Any seller can dictate terms they want for the sale of their home. I would suggest to any buyer of mine with questions about addendums, if I couldn't find an answer, to consult a real estate attorney.

Sorry for any confusion, and good luck!
Krisan

Krisan,
There is a huge difference between "specific" and "blanket". They contradict each other. I can understand the Fannie Mae's form to be a blanket addendum and applies to any property they sell. Therefore it is not specific. What's specific about it is the protection it provides Fannie Mae. Though I have not had any personal experience with it, I have heard others submit an addendum to Fannie Mae's addendum. Any thoughts on this?
Thanks.

DMHfactor,
It isn't the listing agent that dictates what terms a seller(any seller) is willing to accept. Most REO addendums are very specific and they are blanket addendums, given the number of homes across the country that are bank owned.

Best of luck,
Krisan

Krisan,

It is this reason that the banks, or perhaps just the listing agents, are holding the economy on hold. Yes, they may find another buyer who will agree to their terms untouched but when? There is a lot of inventory out there and if some listing agents carte blanche would not allow any changes to the addendum, I believe they are doing disservice to their client, to the community, and to the country even. Banks have to sell their properties. Buyers do not have to buy theirs.

If this is a policy of Fannie Mae or HUD, this must be in writing. Unless there is a reference to a document that can be cited, this is all hearsay and just an opinion. Anyone has a document?

Hi Dmhfactor,
That listing agent is right- many, many REO properties, including Fannie Mae and HUD homes, do not allow changes to be made on their special addendums. Basically, as the seller, their stance is that if a purchaser doesn't like their terms, the next one will. And their terms and special addendums, when in conflict with our basic contract, supersede any conflicts.


Please note, it is not that the listing agent is trying to be difficult, they are just working for their client.

Hope this helps,
Krisan in KC