What is an Exclusive Buyers Agent
Posted 06-17-2014 at 07:34 AM by Paul Howard
Exclusive Buyer Agents are real estate licensees who work for real estate companies that work exclusively for home buyers. They never represent sellers.
A buyer's agent owes fiduciary responsibilities to the buyer - in the same way that a law firm owes those responsibilities to their client.
In most states a real estate broker is the highest level of real estate license. A broker can open and operate a real estate company or may work under another broker. Real estate licensees that are not brokers are typically called real estate salespersons and work under the supervision of a broker.
The consumer’s legal relationship is with the broker operating the company, not the salesperson. This is important to know when looking at “dual agents” and whether or not your agent is, or can remain, a buyer’s agent.
If the home buyer uses the services of a company that also works for sellers and is interested in a home the company listed, the company (including each individual company agent) is a ‘dual agent’. Dual agents can not advocate for the buyer in a way that will harm the negotiating position of the seller.
Some states have tried to accommodate the wishes of large real estate companies by allowing compartmentalization of the agency relationship - allowing one company agent to represent the seller and another the buyer. In practice this does not come close to the relationship a buyer can have with an exclusive buyer agent and deprives home buyers of effective representation.
[ Example: You ( a potential home buyer) tell all about your perfect home and financial resources to “your agent”. This agent has listed the ‘perfect home’. Your agent’s company then ‘designates’ someone else (that you don’t even know) to act as your ‘buyer’s agent’. Legally (based on that state’s laws) the company is a dual agent but the agent you are working with - is not. ] Most states don’t allow this. Most do allow dual agency. The solution for you is to find an agent that works for a company that only represents buyers. Find an Exclusive Buyer’s Agent here: EBA
Paul Howard, Broker
Member: National Association of Exclusive Buyer Agents.
NJHomeBuyer.com Realty
Cherry Hill NJ 08034
856-488-8444
A buyer's agent owes fiduciary responsibilities to the buyer - in the same way that a law firm owes those responsibilities to their client.
In most states a real estate broker is the highest level of real estate license. A broker can open and operate a real estate company or may work under another broker. Real estate licensees that are not brokers are typically called real estate salespersons and work under the supervision of a broker.
The consumer’s legal relationship is with the broker operating the company, not the salesperson. This is important to know when looking at “dual agents” and whether or not your agent is, or can remain, a buyer’s agent.
If the home buyer uses the services of a company that also works for sellers and is interested in a home the company listed, the company (including each individual company agent) is a ‘dual agent’. Dual agents can not advocate for the buyer in a way that will harm the negotiating position of the seller.
Some states have tried to accommodate the wishes of large real estate companies by allowing compartmentalization of the agency relationship - allowing one company agent to represent the seller and another the buyer. In practice this does not come close to the relationship a buyer can have with an exclusive buyer agent and deprives home buyers of effective representation.
[ Example: You ( a potential home buyer) tell all about your perfect home and financial resources to “your agent”. This agent has listed the ‘perfect home’. Your agent’s company then ‘designates’ someone else (that you don’t even know) to act as your ‘buyer’s agent’. Legally (based on that state’s laws) the company is a dual agent but the agent you are working with - is not. ] Most states don’t allow this. Most do allow dual agency. The solution for you is to find an agent that works for a company that only represents buyers. Find an Exclusive Buyer’s Agent here: EBA
Paul Howard, Broker
Member: National Association of Exclusive Buyer Agents.
NJHomeBuyer.com Realty
Cherry Hill NJ 08034
856-488-8444
Total Comments 2
Comments
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I am a real estate agent in Orange County. Very well explained. :)Posted 06-17-2014 at 02:12 PM by VonWrede
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Thank you, Philip.Posted 06-17-2014 at 02:24 PM by Paul Howard
