No, this is not required by the California Department of Real Estate however there are some brokerage firms who may be requiring their agents to use this form.

There is basis, but I would say your friend probably misunderstood the agent. Your friend is NOT required to sign a buyer's agreement. However, that is the way that she will have representation in the sale; it is for their own protection. Without this agreement, they have no representation and the agent is not necessarily obligated to look after their best interests, beyond honesty and competence. It is not to the agent's advantage to be in an agreement with them because it obligates the agent in many ways and there's no real benefit to the agent. So, unless the agent is crazy or a liar, they have no reason to push the agreement and your friend would be wise to CAUTIOUSLY have such an agreement. MAJOR CAVEAT: your friend will want to make sure of what they are doing before they enter this agreement, for it does bind the person to working with the agent or, at least paying them a commission, whether they buy through the agent or not. However, they also expire, so it's not a permanent arrangement.

Your friend needs to read the agreement beforehand, make sure they understand every word of it and have the agent explain each detail, so they know exactly what they are agreeing to. If it's something want to do, that's great, if not... it isn't REQUIRED. If the agent is not using the GAR form, then your friend should have a lawyer look it over.

Georgia Law requires that we, as agents in Georgia, explain to our clients what agency means and how working with them as clients vs. customers affects whether we are actually representing them as Buyer Agents or not. If your client refuses to sign the agency form, then the agent can work with them as customers and once your client becomes comfortable with them and wishes for them to represent them in the transaction, they can sign it. They would need to refuse signing it and make a note that it was presented to them and refused to be signed by the Buyer. Agency agreements can be for one day, one week, one month, one year or any time the Buyer feels comfortable with and he can cancel this agreement at any time. Some agents may charge a few to do so; but I feel I only want to work with people who want to work with me and trust I will represent their interests as if they were my own.

Anne Cintron
Accredited Buyer's Representative
Prudential Georgia Realty

770 772-3318

FYI to clarify - Buyer Agency started in Georgia, I believe, in 1993. I remember working with then Georgia Real Estate Commissioner, Charles Clark, on the language both the State Legislature and the REALTORS could agree upon. So this is not a new thing....

Yes, state law prohibits Broker from representing Buyer as a client without first entering into a written agreement with Buyer under O.C.G.A. 1-6-A-1 et. seq. It is clearly stated on the top line of the Exclusive Buyer Brokerage Agreement and on the Non Exclusive Buyer Brokerage Agreement. It was on the 1/2008 printing. It is also on the new agremeents that were effective January 1, 2009. It may have been before that, but I'm not exactly sure when it started. It is not required before showing homes but if the Buyer wants to be represented and be given any advice it is required.

Another agent answered that it is an employment contract. Sorry, that is not true. Section 2 of the Exclusive Agreement states that "This agreement shall create an independent contractor relationship between Broker and Buyer. Broker shall at no time be considered an employee of Buyer." The same applies in the Non Exclusive Agreement in section 3.

Jen Bowman, Broker Associate, e-PRO
Success Realty
404-456-5024

In mid-2000, the law was changed in Georgia. State law prohibits a Broker (Agent) from "representing a Buyer as a client without first entering into a written agreement". In other words, real estate practitioners are not allowed to perform certain services without the Buyer signing the Buyer Brokerage agreement.

While we are all used to the idea of a Seller signing a written Listing Agreement with a real estate Broker, the practice of written agreements between Buyer and Broker has been much less common. As of 2000 however, Georgia law mandates that a Broker and Buyer must have a written agreement before the Broker can represent the Buyer as a client. So what does this mean in practical terms? Can a Buyer still work with an Agent without signing anything? Does this change the way Buyer's Agents get paid? Does the buyer now have to pay a buyers agent?

In practical terms, the effect of this legislation is that Brokers will not be allowed to offer "Client Level" services to Buyers without a written agreement. They instead would be limited to "Customer Level" services. Customer Level services are basically acts which do not require that the broker offer opinions, advice or expertise. When a Buyer has a Client relationship with a Broker, the Broker is free to advise, and guide the Buyer more fully through the buying process.

A Buyer can work with an Agent without having to sign a Buyer Brokerage Agreement, but the level of service they receive from the Agent will be severely limited. For example, an Agent working with a Customer is only allowed to fill in exactly what the Buyer tells him on the Purchase and Sale Agreement (Contract). The Agent could not offer any advice or help with the offer or the special stipulations included in most offers.

This does little to change the way that Buyer's Agents get paid; however, the commission still typically comes out of the Seller's side at Closing. Buyers will not be obligated to pay a commission to the Buyer's Agent unless they have entered into a prior agreement to that effect. The Agreement also does not unduly bind Buyer and Agent together. Either party can terminate the Agreement at any time by giving written notice.

The 2000 changes protect both Buyers and Brokers by setting forth explicitly the terms under which they are working together. Because of this, each should have a better idea of what to expect from the other.

With that being said, I am a business man first and an Agent second. As a business man, getting the Buyer Brokerage Agreement signed is just good solid business practice.

My broker requires this form as do many broker's throughout the Atlanta area if you are representing a buyer. The agent should always get one signed and the earlier the better as we put an incredible amount of time and energy into showing property and through guiding/helping/informing buyers. I usually get one signed once I have met with a buyer and we begin to look at property. Many agents get them signed before they ever begin showing property.

Yes and No.

If the Buyer wants the Agent to express his/her opinion or give guidance, yes, Georgia law requires an Agency Agreement be executed.

If the Buyer simply wants the Agent to show them houses and not give guidance/advise, then no Agency Agreement is necessary.

Regarding the Agency Agreement, it does not have to be an Exclusive Agreement to satisfy the Georgia statute.