In Illinois, we have buyer's agency, and the agent is presumed to be working with the person he/she is working with (in other words... if you're working with the buyer, you're a buyer's agent... with or without an exclusive buyer's agreement).
We get a lot of resistance to buyers signing "anything" let alone a document that basically spells out that if they buy a house, the agent gets paid, and if the listing doesn't "co-op" the buyer's agency fee, it makes our buyer client responsible for that payment.
While I agree, that the EBA offers a great opportunity to sit down with the client, and spell out exactly how things work and who's responsible for what... you don't actually NEED the EBA in order to sit down and have that conversation. I feel that if I explain things upfront, and if I treat my buyer clients well... they will stick with me, they will buy with me, and I will get paid. I don't feel comfortable having my client (whom I'm supposed to represent) sign a document that, for the most part, protects ME (not them), and binds them to me, and makes them responsible for my commission.
I feel if I do my job properly, we'll have no problems. If they end up buying from a FSBO, or new construction, without me, and I don't end up getting paid, then I've not educated them well enough to understand that they need to include me at the first showing... and shame on me, not on them.
I'm not going to enforce the EBA so that they now have to pay me out of their pocket.
I would think that undisclosed dual agency is illegal in all states (I can't imagine it would not be) but I don't ever profess knowledge of state laws where I don't hold a license. :-)
shouldn't be doing that anyway... ? are you really saying that if they don't sign the EBA you won't be working in their best interest?
and I'm not including those states where it's a requirement, because otherwise you represent the seller, as I stated below. In those states I understand the need.
After two commission disputes with ,otherwise, very loyal & happy Buyer Clients .
I generally wait until the second personal meeting or until we are sure I can assist to sign the B.A. Agreement.
The description & paperwork regarding the mandated Agency Disclosure form are intimidating enough @ the first substantive meeting. I assume nothing and realize that laws regarding Agency are ever evolving.
I understand your reluctance to ask for the exclusive buyer-broker agreement. I used to feel the same way, but have come to the conclusion that my time is valuable and I don't feel like spending my time with buyers who consider me dispensible is a good use of time. I believe buyers should explore their options and interview several agents and then settle on an agent who is a good fit. If they are not willing to commit for at least 3 months, I am not willing to commit either. While we work in a service industry, I don't see why I should work for free. No accountant, doctor, attorney or other service professionals are expected to do free work. I am not sure why people think that real estate agents should work without ensuring that they'll get paid in the end.
What I'm getting at is it all depends on how you work! I do believe a Buyer Broker Agreement explains the whole process to the Buyer. It is a great tool to explain to them what YOUR duties to them consists of and what THEIR duties to themselves consist of! In the greatest state of California we have THREE (3) different Buyer Broker Agreements in various stages of exclusivity. But if you EXPLAIN to your buyers what everyone's duties are up front and during the whole process some Realtor/Agents feel Buyer Broker Agreemens are superfluous while others feel they are an absolute required document to begin a relationship. You pays your moneyâ€”you takes your choice!
you to negotiate the best price, etc., for the buyer and you are actually working for the buyer. Otherwise,
you are doing a transaction without representation of either buyer or seller. (Unless, of course, you
are the listing agent and you represent the Seller.)
I do it now and count it as a step in the productivity cycle. Get the appointment - do the presentation - get the signature.
I've learned allot from this thread.
If they want to continue working with me they must sign a buyer agreement and all the mandatory disclosures (we have a lot in VA) before I will work with them.
I've been burned too many times by buyers I have spent time with to have them buy a fsbo or a 'friends house'. Honestly, if they don't want to sign one, I explain that this is how I conduct my business , my time and knowledge is valuable, and it is to protect both of us. If they still say no, I thank them for the opportunity to show them houses, wish them luck, and send them on their way.
I am in California and we have three different kinds that our California Association of Realtors provide. Personally I do not use them. Most of my business comes from referrals and our relationship may be different.
Also in our state of SC, you must have a written buyer's agency agreement in order to represent the buyer, otherwise you may find yourself in undisclosed dual agency and that's against the law in SC.
I use a Buyer's Agency Agreement with every buyer client I have. Unless they sign a buyer's agency agreement, I work for the Seller and treat the buyer as a customer. If they want representation, they sign the agreement. It's really a a matter of education and the buyer understanding the benefits of buyer agency.
There have been many times that a buyer has started out as a customer and then decided they wanted me to represent them and then signed the agreement - I have found that they just need to get to know me, trust me and see me in action before they hire me.
A Buyer's Agency Agreement is only different from a listing agreement in that the purpose of the employment is different.
Hope that helps.