I typically present the buyer agency agreement to the client/buyer once a comfortable rapport has been established in advance via phone and email....which is typically prior to us actually venturing out to look at homes.
It can be a little awkward at times (depending on how reserved the buyer is), because many people are leary of signing things. However, legally it is the right thing to do to protect both the buyer and the Realtor.
If there is no buyer agency agreement signed, an agent could spend days, weeks and possibly months showing a buyer homes, only for that buyer to go and utilize another agent to help facilitate the actual purchase. That's a lot of hours, gas, mileage and due dilligence expended with no possible ROI (return on investment) if the buyer bails on you and is not bound to you.
In addition, if a buyer doesn't have a signed buyer's agency agreement in place, an agent may not be obligated from a fiduciary standpoint to represent the best interest of a particular buyer in connection with specifics homes for sale or rent.
So everyone's protected, I always encourage the buyer's agency agreement to be executed from the beginning. That way the paperwork can be out of the way, and fun part (searching for the perfect home) can begin!
If you need assistance with Monmouth County homes and/or local info, please call on me. I'd love to help you.
All the best,
Waterfront Home Expert & Short Sale Specialist
Weichert, Realtors (Marlboro~ Manalapan office)
455 Route 9 South
Manalapan, NJ 07726
917-723-5645 - cell
732-536-4400, ext 199 - office
"Your Reliable Resource For NJ Real Estate, Local Info & More"
Although it is not mandatory, I "usually" have the client sign the "Buyer Agency Agreement" when we first meet. It pretty much goes "hand in hand" with the CIS(Consumer Information Statement), which is mandatory, in NJ to be provided to the client prior to showing any properties. It is a benefit to both parties(agent & client) to have the agreement signed if you are planning on working with the agent. It is more or less a contract between the buyer & the agent and ensures that your agent will be working hard in your best interest and that the buyer will remain loyal to the agent. However, you should never feel intimidated or forced to sign anything if you are not comfortable. Your agent should be able to explain the "Buyer Agency Agreement" and the benefits of having this agreement signed. Feel free to contact me if you have any further questions or concerns and I will be happy to help you.
626 Rt. 9 South
Freehold, NJ 07728
Just Jersey Properties
I explain different kinds of agency at the first meeting and let them know they have the option of having a Realtor represent their own best interests. I have yet to sign someone up on the first outing, and would rather wait till Iâ€™ve already taken them out once or twice to see if I really want to. Where I am there are folks who think looking at houses is a fun thing to do between the wine tasting and the BBQ, and I want to know what I'm getting into also.
I would advise YOU to make sure YOU want to sign up with a particular agent by spending some time with them. If they insist they won't take you out without an agreement, tell them to just make the time period for that weekend, and say you don't commit on the first date. :)
Recently I had a situation - with a buyer who found me here on Trulia - after introducing the concept of the Buyer Agency Agreement at our initial meeting, we spent a day together looking at homes. At the conclusion of our second meeting, he said "I'm ready to sign that agreement".
The agreement is meant to reflect a level of commitment to working together not a "gotcha" entrapment tool - I walked away from that interaction confident that my approach is the best one for me. His readiness to sign confirmed his confidence and trust. I have no doubt that this buyer is committed to doing business with me and I am completely dedicated to his success.
All agents are not alike and so you will find different approaches. Mention has been made of the Consumer Information Statement (CIS) - this is a state required disclosure that explains the different roles real estate agents play - any agent you interact with should present this disclosure to you at first meeting.
Good luck to you and best,
Search and connect at http://www.feenick.com
I usually ask my buyers to sign the agreement after the 1st or on the 2nd appointment. This way we both get to know each other and my client can feel comfortable that I will work hard for them. I would not recommend signing it upon meeting the agent for the first time because you want to "interview" the agent first.
Let me know if you have any questions.
626 Route 9 South
Freehold, NJ 07728
I regard the buyer agency agreement as a confirmation of the "gentleman's agreement" that I have developed with my client. My broker likes to have it on file, and so I usually ask my buyer to sign it when we are writing up a contract - having said that I will tell you I am encouraged to do it at first meeting or early on. And as has been stated by prior posters, the reason is to test/confirm commitment/loyalty of the buyer. But I am of the opinion that that trust needs to be earned, and so while I may introduce the concept at first meeting, I rarely ask for it to be signed then. I am proudest when a buyer will proactively say to me, "you know that buyer agent agreement you described...., we are ready to sign it now." That tells me I have earned their trust.
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Did you go to the New York Real Estate Commission's website to see if any of these questions are answered in their FAQs or by calling them.
As to questions that are legal, no Realtor should answer those - unless they have passed the bar in your area.
However, if a buyer failed to live up to this agreement, I suspect there would be legal ramifications.
What recourse does a buyer have if an agent does not deliver on their fiduciary duties?
Keller Williams Atlantic Shore