Do you "sign" with a realtor? (real estate, brokers)

[Wjrgrandma]

We want to build in a fairly new sub-division. Knew what we wanted before contacting a realtor and pretty much handed him a "done deal" so he could negotiate the few, minor things we wanted. We haven't signed any kind of paperwork with the realtor. Shouldn't we? He hasn't said anything and we haven't signed a contract with the builder yet. What should we expect from a real estate agent in this scenerio? We are a few states away and need someone to be our eyes and ears. Comments? Suggestions?

[LCTMadison]

Yes...you should have (at minimum) signed a RECAD (required by AL law at the first contact with any Realtor...many agents ignore it but AL law REQUIRES it, it is a consumer protection) and a Buyer's Agency Agreement (which is required by AL law to establish agency relationship). Agency in AL is not assumed so legally there is no agency relationship between Realtor/client without this (or a listing agreement on the selling side). Without an agency relationship, Realtors cannot advise you, we are considered transaction brokers.

Again, both are REQUIRED by AL law, and agents can lose their license for not providing proper disclosures to potential customers/clients. He/she cannot advise or represent you without the buyers agency, not legally anyhow.

Those are the cornerstone of AL real estate law...so I would consider how this process will go with an agent who has not adhered to it.

Also, the onsite for the builder could have a strong case of "procuring cause" against the other agent. Procuring cause is "the squirrel that shook the tree and made the nut fall...not the squirrel that ran up and grabbed the nut". That is going to be dependent on how much "work" the onsite can show that they have done for you...if you have walked thru once or twice, probably no big deal. If you have visited several times, talked with the onsite numerous occasions, gone over floorplans, features, ect...then who has done the most work for you? One thing..procuring cause does NOT take into consideration the buyer's desire for representation to "get a good deal". The panel who hears the case has to follow the NAR arbitration manual and that is not a consideration for deciding who was procuring cause and has earned the selling side commission. Just an FYI...sometimes an agent will pursue it, sometimes not. Just because an agent writes an offer, does not make them the "procuring cause".
Last year, I declined to assist a buyer in a pre construction purchase because that buyer had been working with the onsite for several months, and the buyer just wanted me to negotiate a good deal on his behalf because I had sold one of his friends a home in the neighborhood. He dropped a "done deal" in my lap as well, but I would have been working for free.

[katieejmom]

wow...great advice