There is one large flaw with the agent presenting it to you now.
For a buyer agency contract to be legit and be upheld it must be introduced to the buyer at FIRST meeting BEFORE seeing houses.
This is the main reason why my office almost never uses buyer agency agreements because we'd have to have the client, who we have yet to know and prove ourselves with, commit to working with us.
If your agent has done a good job for you thus far then there is no reason why you couldn't move forward with an offer. Let them know it's too late for them to produce a buyers agency contract and you don't want one.
They should have no issue working with you. If they try to pressure you or scare you move on and work with someone else.
Best of luck!
For example, you walk into an open house and decided you really like the property and want to put in an offer. Maybe it was something you didn't see with your agent because it was above the price range you had considered going to. The agent at the open house makes you feel as if you need to put in the offer through them and you don't realize you can call up your agent that you have been working with and have him represent you. You make an offer through the agent at the open house and now the agent that has worked for you for months is cut our even though they worked so hard for you and looked out for your interest.
I would just talk to him. It may not have happened to him, but to his coworker next to him and he is using that lesson to try and protect himself and his business. You can also adjust it to make both of you feel comfortable with what is written in it.
The Buyer's Agency Agreement is the smartest thing you can sign with your trusted agent. It gives him the legal right to work as your exclusive agent and 'represent' you, negotiate for you, and point out any defects or concerns about the homes your are viewing. In Colorado you are not allowed to do any of those things and are limited in how much you can legally help your buyer without being sanctioned by the Real Estate Commission. Otherwise your agent is little more than a mute mediator between you and the seller and just shuffling papers back and forth with little or no professional input. Acting as what we call in Colorado a 'Transaction Broker' rather than an exclusive Buyer's Agent.
The problem is when agents don't explain that to you up front and have you sign the agreement early in your relationship. Preferably the initial buyer consultation. Some are afraid to bring it up because they do not know how to explain it correctly and think it sounds offensive. But it is certainly to your advantage to sign the Buyer Agency Agreement. The best part about it is that in almost all cases the seller is prepared to pay your agent the commission. You get all of the benefits mentioned and the seller pays for it. It just makes sense. Good success with your purchase.
Robert McGuire ASR
Your Castle Real Estate
Direct - 303-669-1246
I agree that this document should have been presented at your first meeting but if you have been working with the agent for a while and trust him/her, i see no reason not to sign it.
However, if the agent introduced you to the home, wrote the contract and it proceeds to closing, the agent will get paid no matter what.
Really if you been working with the agent for 2 months why wouldn't you sign it anyway?
Maybe the agent didn't explain to you that you can cancel anytime with written notice. an email will suffice.
In my opinion I think the buyers agreement is meaningless because I've seen agents with disputes win or lose disputes with out any bearing of the agreement. It all comes down to who told you about the house and who you really have been working with.
Your agent has this backward, at least in my opinion. A buyer's agency agreement, if one is used should come very early on before showing all the homes and investing their time. If they are seriously worried about getting paid, they should write the offer and do whatever they can to get the deal accepted. If you get the house you are after, they will ge paid.
It sounds like this agent may be new and is confused and you may want to speak to their managing broker for some clarification.
As an agent, I have been trained to ask for it to be signed at first meeting to protect myself. BUT, I do not feel comfortable doing that because I expect to earn a client's trust and loyalty.
If you are feeling this uncomfortable now, how would you have felt had he asked you at first meeting. It may be the way he is presenting it. But if he has earned your trust and loyalty, then reassure him of that.
Good luck to you,
Unwavering Commitment to Service, Unsurpassed Results
I don't know why an agent would present that to you at that point in your relationship. I would think if he/she was that insecure about your business, the form would be presented to you at the first meeting or so.
Plenty of agents use them. I prefer not to. If you like me, you work with me (and visa versa!) If not, who wants to work with someone they do not like, trust, etc????
As far as NJ goes, there are 3 main types of agency: buyers agency, sellers agency, and dual disclosed agency. The first time an agent meets a potential client, there is a Consumer Information Statement we are required to give out that explains each type of agency very clearly so that people know what to expect. If you never got it, now might be a good time to get one. I can email it to you, if you'd like. Just contact me via Trulia or my website below.
Karina is correct. The agency relationship must be determined on your first meeting. At the first meeting with the agent you should be given a Consumer Information Statement (CIS) explaining the 4 ways you can be represented in NJ. It is at that time that the agency relationship should be determined, not after the fact.
I hope all this advise helps. Please do not hesitate to contact me with any additional questions or clarification.
Andres Garcia - Sales Associate, CDPE - RE/MAX Gold Coast Realty - 56 Newark Street - Hoboken, NJ 07030 - Direct: 201 795-5200 x340
What I'm used to is: (1) A buyer's contract (2) Signed very early in the process, when the buyer decides on an agent to work with. But, again, as you can see, practices and opinions vary.
I'm guessing that your agent didn't want to "bind" you to a general agreement, but only saw the need for one when you identified a house on which you wanted to make an offer. And that'd be OK. I do think it would have helped if that had been discussed up front--if the agent had told you early on: "I don't require a signed agreement at this point. But when it comes time to make an offer, then we'll sign the agreement applicable to the house you're interested in." That would have avoided the surprise you ran into.
As a practical matter, from your description--that you've been working with the agent for several months--it sounds as if the agent probably earned the commission on this transaction. If you agree, then there's no harm in signing. If you disagree--let's say you found the home completely on your own--then you might consider not signing.
One other factor, though: Whether you sign or not, the house won't be any less expensive without a buyer's agent involved. The seller has already signed a listing agreement with HIS agent regarding the amount of commission. If you're thinking that you can save some money without having your own agent involved, that's incorrect. So--with or without an agent, this one or a new one--the costs to the seller are going to be the same.
Hope that helps.
MK Group at Liberty Realty
Your Luxury Property Specialist
#1 Realtor in Hudson County MLS in 2011 out of approximately 3000 licensed agents
Only realtor in Hudson County to Reach Top Sales Award of Platinum since 2005 thru 2011
Office (201) 610 - 1010
Office Direct (201) 659 - 1143
Cell (201) 320 - 5371
Please don't sign the buyer's agreement at this stage in the game. If the seller's agent disputes your agent's claim and shows they are the procuring cause, you could be responsible for paying your agent commission.
Hope this helps.