Contract for Buyer's Agent? (real estate, rentals, broker) - Colorado (CO) - City-Data Forum

BarryK123 · 03-05-2009, 05:53 PM

In CO, if a real estate broker is going to show me properties for potential purchase, am I required or expected to sign some kind of contract? Thanks.

sunsprit · 03-05-2009, 06:40 PM

If you're just looking as a buyer, generally no.

But if you want a buyer's agent representation, then you're engaging a different service with the agent's primary responsibility to you ... and it would be customary for them to have a contracted relationship from the outset. That way there's no ambiguity about their loyalty and legal responsibility in any transaction they'd represent you. Without that relationship, they're working for the seller as their primary responsibility.

BarryK123 · 03-06-2009, 05:46 AM

What he wants me to sign is an EXCLUSIVE RIGHT-TO-BUY CONTRACT. It comes from CO Real Estate Commissions web site and can be seen here:
http://www.dora.state.co.us/real-est...0040705CLN.pdf

Only downside I can see is if I don't like the guy or he wants to show me properties I don't want to see, then I have no recourse until the contract expires.

2bindenver · 03-06-2009, 11:38 AM

He should give you the Definitions of Real Estate Brokerage Relationships page too.

You can hire a Transaction Broker or a Buyers Agent using the same form. You can also ask for a trial period with a shorter time frame.

If you do not sign anything, the broker does not work for the seller by default. He would be a Transaction Broker (neutral.)

formercalifornian · 03-06-2009, 12:15 PM

As I recall, we signed an agreement for short three-week trial, and we had no reservations about doing so. If it hadn't worked out, we'd have hired a new agent at the end of the term, but we ended up making an offer during the second week. Our Realtor did a fine job negotiating what we considered a very fair deal after an extended negotiation process. He earned his commission, and we got a great house.

If you have any hesitation about signing a contract for exclusive representation, I think perhaps you ought to keep looking for an agent with whom you feel more comfortable.

BarryK123 · 03-06-2009, 01:00 PM

Thanks for the replies. Yes, he did give the Definitions of Real Estate Brokerage Relationships, too. Here in PA, there are no such contracts for buyer's agents, so it just made me wonder. Flying out this weekend. We'll see how it goes...

Americana1st · 03-10-2009, 02:46 PM

Make sure and shop and buy if at all possible by owner. Don't believe all the false crapola the real estate agents fill you full of about private owner sales.

Get savvy about what you want, read up on the internet, (which -- whether or not they want to believe it -- has replaced real estate agents), and buy the place of your dreams.

I would not recommend signing a buyer's agent agreement. It is solely for the agent's protection. It does nothing for you.

2bindenver · 03-10-2009, 02:50 PM

Quote:

Originally Posted by Americana1st

Make sure and shop and buy if at all possible by owner. Don't believe all the false crapola the real estate agents fill you full of about private owner sales.

Get savvy about what you want, read up on the internet, (which -- whether or not they want to believe it -- has replaced real estate agents), and buy the place of your dreams.

I would not recommend signing a buyer's agent agreement. It is solely for the agent's protection. It does nothing for you.

Any proof? of "false crapola? or of Buyer's Agents contract have nothing to offer buyers?

formercalifornian · 03-10-2009, 06:05 PM

Buying a FSBO is certainly an option, particularly if you hire a real estate attorney to walk you through the legalities. As for me, I was happy to employ an agent. To each, his own.

Bob from down south · 03-10-2009, 06:19 PM

If you do sign one of those exclusive right to buy contracts, limit the term to 30-60 days, and make sure you're comfortable with the agent before you sign, as you'll owe him/her a commission if you buy anything during the contract period.

I'd also be very specific in the property description...for example I'd recommend you specify the city or county, and strike any language regarding rentals. That way if you end up not buying and renting for a while you don't end up owing him for something he had nothing to do with...and if you go looking in the next town, you can use an agent there.