Do you have clients sign a buyer's representation agreement?

Asked by Kyle Jancovech, Austin, TX Sat Jan 7, 2012

http://www.KyleSellsAustin.com

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37
James Deskins, Agent, Worthington, OH
Sun Jan 8, 2012
Yes, for 16 years now. It's the most professional way to represent a buyer client. If I am going fully commit to them I want them to fully commit to me. It weeds out the tire kickers and the wishy-washy undecided lookers. And whether it's enforceable, or not, it sets the stage for how you will work together. It tells a prospective client that you are not a "casual" agent and you don't work with "casual" buyers.
3 votes
Well said James. It also is a way to determine real intent many times. I think if you present it as the natural process of business it is received better. Of course you want to build relationship that lead up to this commitment. I can see where someone off the street may be uncomfortable but this can be covered in the initial phone/walk in consultation. You find out where they are in the process. I don't mind 30+ to get acquainted and find out what they need, want and desire as well as their motivations. However if they just want to me jump in the car and show them a house without a relationship this is not safe for me, the seller or anyone.
Flag Tue Nov 27, 2012
Thomas Hess, Agent, Austin, TX
Sat Jan 7, 2012
Yes, I always require it and always for a time period. If it is a call for a single showing for one property it may only be for that one property. I also explain that this is a working agreement and NOT a contract and that if I do not perform as to showing properties that are appropriate, fail to be timely, or do not live up to my many obligations that it is easily terminated by an email or a phone call....but that it is still in force should the client enter into a contract with a property where I was the procurring cause on. A buyer's Rep agreement is a two way street. The client is committing to work only with me.....and I am committing to do my duties.
3 votes
Jeffrey Nyla…, , Austin, TX
Sat Jan 7, 2012
Always! If not, I represent the seller!
Web Reference:  http://www.NylandTeam.com
3 votes
Christopher…, Agent, Tarrytown, NY
Tue Jul 16, 2013
Hi, Absolutely! When explained properly, a buyer will not be scared of signing it and the agent won't be scared to present it! The beauty of the agreement is everything can be mutually agreed upon prior to sign, hence the term "agreement"

Christopher Pagli
Accredited Buyer Representative
Licensed Associate Broker
William Raveis Legends Realty Group
914.406.9023
1 vote
Aaron Weber…, Agent, Middleton, WI
Sun Jan 8, 2012
Yes. This protects the client and you. You should always do this.
1 vote
Dorene Slavi…, Agent, Torrance, CA
Sun Jan 8, 2012
Dear Kyle,
Yes I always work under an exclusive agency agreement with buyers. It is a professional relationship and contracts are understood to be a part of that relationship.
1 vote
Akil Walker, Agent, Upper Marlboro, MD
Sat Jan 7, 2012
Hello Kyle,


In MD were required to present "Understanding Agent Representation" during your intiial face to face meeting with a potential client. I have them sign that, and the buyer's representation agreement so we have a clear understanding that will be working together. If they are not comfortable or do not want to, we will both know there committment level. thus I have some money and more importanty time for the both of us.
1 vote
Hi Akil, I am in Texas and we also have a Buyers Rep Agreement. I would love to see your Understanding Agent Representation. Does that explain the BRA? Thank you for sharing any info you are willing to.
Flag Wed Jul 8, 2015
Vanessa Nunez, Agent, Austin, TX
Sat Jan 7, 2012
Kyle,

I ususally have them sign it at the time of the contract. It works well. I have done this very effectively, to help me to become 2011 Rookie of the Year with Austin Board of Realtors. I think people are more apt to have a loyalty commitment to you as an agent if you commit to them. Paper does not do this.

Warmest regards,

Vanessa Nunez
VOX Real Estate, LLC
1 vote
Jennifer Fiv…, Agent, Red Hook, NY
Sat Jan 7, 2012
Yes it is important to have that done. Who wants to spend time working with a buyer who is not committed to the relationship. You should also spellout what you will be doing ,and when you will me meeting to look at properties.
1 vote
Susie Kay, Agent, Dallas, TX
Sat Oct 10, 2015
Yes, if they refuse to sign the buyer's rep, then you can still show the properties but you represent the sellers!
0 votes
Selling the…, , Colorado Springs, CO
Fri Oct 9, 2015
I have a very good friend who wants to buy a house. I sent her the buyer rep form and they never signed it. I reminded them that this needs done several times. We have looked at houses. Thoughts?
0 votes
Ask them why they aren't signing. Maybe they don't understand it, so you probably want to go over it. Next time you show them houses, bring a copy and explain the form to them. I tell my clients straight up the form was developed to protect realtors - someone sued someone and now we all have to sign this 4 page govt form to make sure we're in agreement about what we're doing here. Go over fees, mention that it binds you as their fiduciary and of course without the paper, it's how you operate anyway, but for peace of mind for everyone (including your Boss!) this is part of the process.
Flag Fri Oct 9, 2015
Amanda Chris…, Agent, Fort Wayne, IN
Tue Oct 22, 2013
Nope. Never have and never will. I educate all buyers up front about the process, about procuring cause, how I get paid, and what I expect of them.

I have been doing this long enough to know my loyal buyers v. buyers that just don't care.

Signing a buyer's agreement is almost like saying "Here Mr. Buyer. Please sign this. I don't trust you."

Just my two cents!
0 votes
Josh Daniels, Agent, Port Lavaca, TX
Tue Oct 22, 2013
Yes.

For two reasons:

1. You are going to spend money showing them houses, and should protect your investment. That is just good business.

2. It is important to educate your clients, and explain that you will be loyal to them, and that they should be loyal to you in return. Don't present it as you staking a claim on their business, but rather as a partnership between you both that says you're obligated to represent their best interest.

Josh Daniels
Russell Cain Real Estate
sellingportlavaca.com
0 votes
Jordan Gouger, Agent, Austin, TX
Fri Sep 6, 2013
Yes. I try to as soon as realistically possible. I explain to them that by signing it they are hiring me and if at any time I am not living up to their expectations, they can fire me.
0 votes
Susie Kay, Agent, Dallas, TX
Thu Sep 5, 2013
Yes, I do. If they don't feel comfortable signing an agreement they can always sign for a week or two. If they refuse then just like Jeffrey said below I represent the seller under the subagency in the MLS or you can choose not to work with them at all.

Susie Kay
United Real Estate
http://www.dfwdreamhomes.net
469-371-2899
0 votes
Mike Porter, Agent, Austin, TX
Thu Sep 5, 2013
It's important for the client as well as the agent. It specifies what the client can expect from the agent in terms of representation and vice a versa .It also shows the client how seriously an agent is taking the search and sets the expectation of exemplary service.
0 votes
James Deskins, Agent, Worthington, OH
Fri Aug 30, 2013
Mark A., but how many houses will you show them without a buyer's agreement? 1? 2? More?

Just curious.
0 votes
Mark Alexand…, Agent, Austin, TX
Thu Aug 29, 2013
I don't mind showing a potential buyer A House without a buyers rep. Getting a little face to face is good to have to see if you are a good match. Definitely no shopping without having sent them to a lender.

Approve rather than sign. Document rather than contract. Sometimes verbage makes all the difference.
0 votes
James Deskins, Agent, Worthington, OH
Thu Aug 29, 2013
Warning! Investors can be flaky and may try to "use" you. Be advised!
0 votes
Roxanne Kahn, Agent, Austin, TX
Wed Aug 28, 2013
I always have my clients sign a Buyer's Rep. It's best to try to get them to sign it early on, but if the situation doesn't present itself I have them sign it before we go on our first showing. This way, they understand that we have an agreement that I am representing them and not the seller and it also helps to protect you! I would get this signed every time. My agency actually requires it.
0 votes
Annette Law…, Agent, Palm Harbor, FL
Tue Jul 16, 2013
As James, Columbus Ohio, so clearly pointe out, "Only if you are a professinal.'
There are plenty who are not.
Without it you clearly identify for your client which one you are.
0 votes
Valarie Rich…, Agent, 77380, TX
Tue Jul 16, 2013
I have an investor that doesn't want to sign the buyers agreement in case he finds another property on his own. We have found a home he wants to write the contract. Should I just check the box Seller as listing agents sub agent. This is a Texas 1-4 contract.
0 votes
kt_vandaele, , Austin, TX
Sat Jun 22, 2013
Hi i'm a real state agent, If I sell my listing to a costumer who I did not know that they have signed a buyer representation agreement with a different agent, was I obligated to ask ?
0 votes
John Souerbry, Agent, Fairfield, CA
Tue Jan 10, 2012
I agree with Vanessa, and others, that it's better to try trust first. One other thing to consider - does anyone really want to go to court against a client? That's not good publicity, and it WILL get in the paper for everyone to see.
0 votes
Carmen Brode…, Agent, Scottsdale, AZ
Tue Jan 10, 2012
I used to but don't bother anymore. If someone is going to double cross my, karma will get them in the end.
0 votes
Julie Butler, Agent, Virginia Beach, VA
Tue Jan 10, 2012
Its important to have a client sign a buyer's representation agreement, but I don't always do it right away. If I think the client needs a little hand holding to gain trust in me as their agent, then I give them the time they need. You need to be able to read the clients so that you don't scare them away by insisting they sign it before you spend any time with them. Of course you have to be careful not to spend tons of time with them just to have them find a home with the help of another agent.
0 votes
Vanessa Nunez, Agent, Austin, TX
Sun Jan 8, 2012
Kye,

What most agents do not know is that this is not even aniforceable contract. Call TREC legal and they will tell you. So why have them sign it until you are actually working and representing them in a contract. I think that if you give all your best to the client and you are honest with them then they inturn display that same level of honesty.

Warmest Regards,

Vanessa Nunez
VOX Real Estate, LLC
0 votes
Scott Hulen, , 64068
Sun Jan 8, 2012
Phillip & Jeffery have given you the best reason, by law you represent the seller if they do not sign. Your job if they choose not to sign is to unlock the door, turn on the lights, lock the door and represent the interest of the SELLER! If they buyer asks questions of you such as what do you think about the condition of the roof, carpet, ect… or do you think if we offered x amount to start with then we could take it up to y amount if it was rejected, you are obligated to pass the information along to your client aka the “seller”. If I was a buyer and someone took the time to explain the law to me I would have no trouble signing, I think the problem is Realtors try to lock someone in for 90-180 days that they just meet, my solution is a 1 day buyers agency agreement for the properties shown that day. If they want to continue working together after day 1 I usually ask for 90-180 day commitments which I would let them out of at any time as long as it was not for the purchase of a property I had previously shown.
0 votes
In Alaska licensee's have to sign a consumer information pamphlet with the client, in order to clarify who they are working for (and this can change, for instance if you show a listing of your brokerage). This is not the same thing as a buyer rep agreement.
Flag Wed Mar 4, 2015
Phillip Guti…, Agent, Austin, TX
Sat Jan 7, 2012
Yes...otherwise, you are technically working for the seller. If I don't get a buyer's representation agreement signed in the first two or three meetings, I always add it to the tail end of any offer for signature. That way it's in the file for future showings, in case any offers you write fall apart....and the those chances are pretty good these days.
0 votes
Connie Bearf…, Agent, Austin, TX
Sat Jan 7, 2012
What was suggested to me, and I hope this helps you is, I do after the 2nd or 3rd get together. At that time, I ask them if I have been taking care of them to their liking. At that point, they say yes, because they have asked me to help them, usually 3 x's. Then I ask them to sign the agreement, and it tends to strengthen the commitment.
0 votes
Tim Moore, Agent, Kitty Hawk, NC
Sat Jan 7, 2012
Nope - If they don't like the job I am doing they are free to walk away. Not many do.
0 votes
Cheri String…, , Austin, TX
Sat Jan 7, 2012
Yes! You should be able to explain in detail all of the benefits of buyer representation to any prospective client. One of my favorite analogies.... If a buyer doesn't have exclusive representation, it's like being a defendant in a court case and having the lawyer for the other side represent you!
Web Reference:  http://www.cheristringer.com
0 votes
, ,
Sat Jan 7, 2012
Hey Kyle.....

I am not an agent(I am a lender).... But if I were buying, I wouldn't have a problem signing an agreement. As long as it doesn't lock me in for a time period!
I can totally respect that I am locked into anything my agent shows me..... But I would want the freedom to fire an agent and move on if I wish.

If I were an agent, I would get them signed.... And I would explain what it means.... And I would explain to the client their options to get out..... Up front and honest agents would find me very receptive to signing. If the agent cannot explain the document, I would punt them on the spot
0 votes
Janine Kowal…, Agent, Jensen Beach, FL
Sat Jan 7, 2012
Its rare although I am an ABR and should be doing just that...
0 votes
Betina Forem…, Agent, Austin, TX
Sat Jan 7, 2012
Absolutely. If they wont commit to me why should I commit to them? My clients see the value of my service.
0 votes
Albert Elhage, Agent, Austin, TX
Sat Jan 7, 2012
All the time. I learned the hard way. Explain to them that the agreement is to protect them as much as it is to protect you.


Albert
0 votes
Shanna Rogers, Agent, Murrieta, CA
Sat Jan 7, 2012
Hi Kyle,

Yes. I don't want to work for nothing. If the buyer doesn't want to sign, explain to them it is to protect you and them. Also, you can taylor it to the buyer - i.e. a specific property, for one day, etc.

Shanna Rogers
SR Realty
http://www.RealtyBySR.com
0 votes
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