1,052,176
OK. In AZ, an Agency DISCLOSURE is required at first substantive meeting. That is not an AGREEMENT to represent - it is a disclosure that the consumer is NOT going to be represented by the agent. I do not blame the agent at all for refusing to show unless that was signed.
If they were requiring that the unrepresented buyer agree to be represented by the listing agent, that is not appropriate practice. You'd be amazed at how many agents work in our business for years and fail to comprehend agency.
Finally, the listing agent doesn't have an obligation to show a property they represent if they feel that consumer may be problematic for their client. They do, however, have the obligation to cooperate with other agents in their association.
What does working in corporate compliance have to do with not wanting representation, I'm curious to know? You mentioned the agent wanting 'all their commission instead of half'. Did your friend think they would be receiving that half?
-
Raj Taj
Lake Bluff, IL
-
Nina Hollander, Broker
Charlotte, NC
-
Hella Mitschke Rothwell
Honolulu, HI
-
Pete Xavier
Pacific Palisades, CA
2,362,595
Great discussion topic. I would have shown the house because I have an obligation (I believe) to the seller. Maryland is like NY - we have a disclosure of whom the agent represents. If the buyer doesn't sign, we put their name on the form and sign that they refused to sign.
-
Candice A. Donofrio
Fort Mohave, AZ
6,392,929
That dual agency waiver is required around here, the agent is under no obligation to show homes to someone who is not even serious enough to sign a waiver. I would make sure he showed proof of funds or financing before I took him on a home tour too.
-
Nina Hollander, Broker
Charlotte, NC
-
Fred Hafdelin
Mountain Lakes, NJ
187,002
Dude, get your own agent, it will keep you out of trouble. Your friend out of trouble I mean.
-
Ryan Huggins - Thousan...
Thousand Oaks, CA
-
Candice A. Donofrio
Fort Mohave, AZ
687,136
This is interesting. The listing agent gets his full commission from the seller no matter what, then shares it with a "cobroke". If there is none, he keeps the whole commission. In the situation you mention, where your friend wants to represent himself and save the 3% commission (NOT), I would insist on a "Buyer Non Agency Agreement" in California where listing broker does not represent the buyer. And, yes, I would want this in advance so there is no confusion as to "agency" since my "fiduciary" lies with the seller. In Hawaii, it's a little different where the potential buyer needs to sign a "Dual Agency Consent Addenda" where both buyer and seller are treated equally. No fiduciary. But that's only on an offer from the buyer.
If, has happens a lot, buyers call me to view a home, I have no trouble doing so. Often it turns into a dual agency sale which my listing clients have told me in advance they have no problem with. It's only when the buyer wants to represent himself, that the paperwork needs to flow. I suggest they go see their lawyer. And there is no "co broke" paid.
-
Candice A. Donofrio
Fort Mohave, AZ
-
Pete Xavier
Pacific Palisades, CA
2,182,502
In most states Buyers are allowed to purchase Unrepresented ! A true Dual Agent represents no one (skill set wise) and has been reduced to a facilitator. You don't need to create Dual Agency to make the entire commission !
-
Nina Hollander, Broker
Charlotte, NC
-
Candice A. Donofrio
Fort Mohave, AZ
3,071,489
What Candice A. Donofrio said - and - I saw no mention of your friend having provided any documentation - Prequalification or Proof of Funds - that would demonstrate their ability to purchase the property.
-
Candice A. Donofrio
Fort Mohave, AZ
613,494
Welcome to the world of dishonesty...you will see a lot more of this when you get licensed.
Don't bother with a complaint. The state only wants to hear about a broker who ran off with the escrow money...a local ethics complaint will also go no where because many on the panel are doing the same thing.
The first mistake was made by your friend who thinks that they don't need their own agent...the needed to hire a Buyers Broker first.
Eve
PS: don't confuse a state disclosure with a buyer broker agreement. And yes, the agent does have a fiduciary duty to the seller which they are breeching when they attempt to represent the buyer.
-
Candice A. Donofrio
Fort Mohave, AZ
2,684,009
As a Broker, or as a Buyer, if the LA won't let me in, or won't present my offer, I am going straight to the Seller.
-
Eve Alexander
Tampa, FL
953,617
The listing agent could require a BBA & DAD to a prospective buyer if the agent wants to, even though it's not required in my state (the DAD would be required if you decide to write an offer with the listing agent). Agent also has the right to refuse to work with a prospective buyer. I am LOYAL to any prospective client if they want to see any home they'd return that loyalty by agreeing to sign a single property BBA & DAD (at least) and have their pre approval at the ready. Of course this is not needed for open house visits. Loyalty and commitment is a two way street with anybody working with my team. One could always go to another agent for buyers' representation, why did your friend not sign with a buyers' agent? It's the best deal out there!
Agents have NO legal loyalty to people outside the contract, PERIOD. An agent could be doing their due diligence or their own method of practice by refusing anyone outside of the contract. This does not hinder anyone as they could simply find another agent.
BBA=Buyer-Broker Agreement
DAD=Dual Agency Disclosure
This pertains to California and I'm NOT a real estate attorney.
-
Candice A. Donofrio
Fort Mohave, AZ
1,513,143
I am not a fan of buyer agency but do use it; here we need disclosure signed by the client and if they do not sign we write in their name, date and that they refused.
I would always show the home.
-
Lise Howe
Washington, DC
1,725,996
Your friend had no agency agreement be it a Single Agency, or better yet the Buyer-Broker Agreement, which by the way is no better than the paper it is written on. He has no recourse against this agent. When you eventually enter into the business as a licensed agent, you will discover that the two are separate issues and you will get 'burned' by buyers who are uncommitted to you. This entire scenario you related seemed to boil down to poor communication by both parties. resulting in this outcome.
-
Candice A. Donofrio
Fort Mohave, AZ
216,904
Why not have your friend contact the Managing Broker of the firm and find out if this is a company policy or a poor judgement call by the listing agent? That should be done before any complaint is filed with Dviision of Real Estate. They can cross out everything and write Not Represented on the document, so it is clear that the showing is one of Listing Agent representing Seller and NOT Buyer.
911,228
Agents can't force or require anyone to sign those forms before showing them a house. I wonder if that agent tries to pull that at open houses? The one thing your friend needs to know though, is he shouldn't ask any questions of that agent that sound like he has a serious interest in the property. In many states, agents can't have substantive discussions about a property without having a signed buyer agreement. Those agreements can be dated by the way, they can be for 1 showing, 1 day, 1 month, etc. Another thing to consider is the listing agents instructions from the seller. Owners can instruct their agent to only show property to pre-approved buyers who are represented by an agent. It shouldn't cost your friend anything to interview and hire a buyers agent that he likes, and it would probably be in his best interest.
979,496
Mike - Reading all of these answers, I must be missing something.
I thought you said that the listing agent refused to show a home to a potential buyer because they did not sign an Agency Agreement form ahead of time, which would acknowledge that the buyer was "hiring" the said listing agent.
How is this okay? How can the listing agent force a potential buyer to hire them as their agent just to look at a home.
How is this situation so different from open houses, where the listing agent may have all sorts of potential buyers previewing the home who are not represented by them, or by a buyers agent. Heck, lots of them might just be nosy neighbors who have no intention of buying. None of them are required to sign any contract, disclosure, or agreement before looking at the home. Open houses are welcome to anyone and everyone, and not only do none of those individuals have to sign anything, but none of them have to be pre-qualified or pre-approved for a loan before they see the home either, but they are all certainly welcome to take a look at the home no questions answered.
1,502,898
Wow. I have not heard of that out here. If I get a sign call from someone not represented, I rush out there to show it. In California, if I show the buyer and they write an offer with someone else, I still get the commission because I was the one to initially show it, even if they're under contract with another agent. Doesn't matter who writes the contract. Might require some legal action, but that's life.
On those calls, my goal is to pick them up as a buyer for my listing or if that house doesn't work, then as a general buyer. They obviously know I'm the listing agent and if they write the offer, there is a disclosure about that as well.
For my two cents, I think those couple agents were foolish but that's their perrogative. Maybe they've been burned before.
7,835,323
These rules are not the same in all states. It is important to understand the requirements in the state where the property is located.
5,104,931
All you need to is disclose to an unrepresnted buyer that you are not representing their interests. And if they want representation they can choose to sign a dual agency agreement with you or find their own agent. But I don't think you can make them sign anything.
4,434,127
In our listing contracts , it is between seller and listing agent so if there is only one agent and the contract allows it the agent gets to keep the entire money.
The buyer is not going to get a reduction for not using an agent.Again it will depend on listing contract and state laws.
2,759,812
Good morning Mike. Interesting question and I found the answers to be interesting as well.
634,482
2,443,250
3,988,007
It depends what the agency laws are in your state. In TN you are to disclose who you represent at first opportunity and then can proceed to show an unrepresented buyer.
212,755
I would say that was a bad judgement call of the agent, they should have at least still showed up and discussed in person what was happening.
2,224,473
I don't beleive that an agent can make anyone sign a contract if they don't want to. As a buyer I would find another agent.
4,935,567
I try to have them sign a agent agreement with me before I take them out, even if it is for one day.
4,160,276