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that a written buyer's agreement is necessary for fiduciary responsibility to a potential buyer. (See Working With (http://www.ncrec.state.nc.us/publications-bulletins/WorkingWith.html - broken link))
While I would personally recommend a written agreement so that there are no misunderstandings, "Buyers' Agency" is the only agreement in North Carolina real estate that does not have to be in writing, at least until an offer iswritten up.
It IS required that agents give a written form of the "Working with Real Estate Agents" (material at the link), explain it and have it signed. There is a place on it for the client to check that they do NOT want to be represented by a buyer's agent and will be shown property with the agent remaining as a sub agent of the seller. It is NOT a contract, it only serves to prove that an agent has explained agency relationships to someone with whom they have "substantial contact".
Also, the buyer's agency, even if written, can be terminated if the relationship is not working for either party. There is yet another form for that available. If you are balky at signing a contract, but want to be sure you are protected, just make it to cover a short time period. As with any document, read it through before signing. Each company has it's own form. There must be certain provisions in all of them to "hold up in court", but they can vary somewhat.
One very important concept that people fail to understand is that buying a home directly through a builder or listing agent rarely decreases the price of a home. When I first started buying investment property, I thought that myself. I now know that in practice that is not how it works. It would take another long winded message to explain this, but PM me if you want to know why.
If someone says, "Come on. I'll buy you lunch," I'm comfortable with that verbal agreement.
If I plan to engage a "Fiduciary" to serve me, it WILL be in writing.
I have heard over the years from time to time that there may be people who do not honor verbal agreements, or forget the details, etc.
Some folks might even do that for personal convenience or profit. Imagine that!
I can afford to lose lunch money...
My first negotiating lesson, many moons before real estate, was, "If you ain't got it in writing, you ain't got it."
Consumers would be wise to consider that thought when considering engaging a fiduciary, IMO.
that a written buyer's agreement is necessary for fiduciary responsibility to a potential buyer. (See Working With (http://www.ncrec.state.nc.us/publications-bulletins/WorkingWith.html - broken link))
While I would personally recommend a written agreement so that there are no misunderstandings, "Buyers' Agency" is the only agreement in North Carolina real estate that does not have to be in writing, at least until an offer iswritten up.
Thanks for the clarification, HL! I do want to point out that while a written agreement is not required, the "Working With Real Estate Agents" document does state,
"Once you have agreed (either orally or in writing) for the firm and its agents to be your buyer's agent, they may not give any confidential information about you to sellers or their agents without your permission so long as they represent you. But until you make this agreement with your buyer's agent, you should avoid telling the agent anything you would not want a seller to know."
So, while a written agreement is not necessary, an agreement (oral or written) on the issue of agency IS a requirement. As a buyer, if you haven't specifically discussed agency with the real estate agent, there is a presumption that they represent the seller.
Mike--there was a time when I'd feel comfortable making a "gentleman's agreement" with a handshake, but that time has long since passed. It'd be nice if we could always take people at their word, but since that's not always the case, written contracts and agreements help prevent misunderstandings.
I didn't sign a buyer's agreement until we went to write up my first offer. That gave me enough time with the agent to be comfortable enough to sign it. I recommend you spend some time with an agent, looking at homes, before signing the agreement. You don't want to find out afterward that you've signed a dud.
I also was looking for someone not pushy. I probably looked at houses for 9 months before finding the one I bought (though in that time, we'd only look at 1 or 2 listings per month. I'm picky like that). And I just don't respond well to pushy people. I was very happy with my agent once I had a house under contract. He was much more pushy with the sellers about meeting deadlines and agreements than their agent was with us. These people would have dragged out the closing process forever if it were up to them.
I didn't sign a buyer's agreement until we went to write up my first offer. That gave me enough time with the agent to be comfortable enough to sign it. I recommend you spend some time with an agent, looking at homes, before signing the agreement. You don't want to find out afterward that you've signed a dud.
As a buyer, I'd feel safer signing a buyer's agreement for a short period (say 1 day or 1 week) rather than not signing anything at all. Some people think that it's safer not signing anything, but actually, the reverse is true.
As a buyer, I'd feel safer signing a buyer's agreement for a short period (say 1 day or 1 week) rather than not signing anything at all. Some people think that it's safer not signing anything, but actually, the reverse is true.
Yes, I would have too, but by that time, the agent had been working with me for so long that I think I signed it for 30 days. I was pretty sure he was the guy. And he explained to me what it meant if I signed it, and what it meant if I didn't, and left it up to me.
Our trip to Releigh didn't go so great. Two of the agents recommended by this board totally flaked on us at the last minute and the one who was available to meet with us sort of rubbed me the wrong way.
He also stated that he'd be emailing me some stuff before Monday and here it is Tuesday afternoon with no info. He basically gave me a few maps and a magazine and sent me out to find a house on my own, which was not helpful as far as getting to know areas that we weren't familiar with. We got lost (even with a GPS guiding us). He also kept trying to give (bad) financial advice, which was not really appreciated. I guess he sees young people with a 150K budget and assumes we're poor and know nothing about finance.
He also told us some interesting info we'd never heard about prison escapes in Clayton and nuclear power plants affecting people in Apex. Whether or not this is true is probably up for debate.
All in all, I guess we are disappointed with our trip. We are now seriously considering renting, which was NOT at the top of our list of best-case scenarios at all.
Our trip to Releigh didn't go so great. Two of the agents recommended by this board totally flaked on us at the last minute and the one who was available to meet with us sort of rubbed me the wrong way.
He also stated that he'd be emailing me some stuff before Monday and here it is Tuesday afternoon with no info. He basically gave me a few maps and a magazine and sent me out to find a house on my own, which was not helpful as far as getting to know areas that we weren't familiar with. We got lost (even with a GPS guiding us). He also kept trying to give (bad) financial advice, which was not really appreciated. I guess he sees young people with a 150K budget and assumes we're poor and know nothing about finance.
He also told us some interesting info we'd never heard about prison escapes in Clayton and nuclear power plants affecting people in Apex. Whether or not this is true is probably up for debate.
All in all, I guess we are disappointed with our trip. We are now seriously considering renting, which was NOT at the top of our list of best-case scenarios at all.
The only thing this agent did wrong was not send you emails like he told you. He was probably trying to help point you in the right direction for a loan...don't know though....and he was telling you about Shearin Harris Nuclear Plant in Apex...nothing wrong with that...prison escapees....well that's just local news. Looks like you guys are going to have a hard time finding a Realtor to fit your needs.
In addition, Monday was a public holiday (Presidents Day). I'm sorry that the agents rubbed you the wrong way and hope that you are able to find a good match. I know I've had an excellent relationship with my agent which has made my homebuying experience quite enjoyable.
The only thing this agent did wrong was not send you emails like he told you. He was probably trying to help point you in the right direction for a loan...don't know though....and he was telling you about Shearin Harris Nuclear Plant in Apex...nothing wrong with that...prison escapees....well that's just local news. Looks like you guys are going to have a hard time finding a Realtor to fit your needs.
You'll notice that in my post I said it was interesting info, not that it was incorrect. Maybe I didn't make myself clear. I was disappointed to hear these negative things about areas that I had the impression from the boards were having tons of growth and were great places to live.
As far as the loan stuff, we have already been prequalified. He was trying to convince us to not put anything down (as opposed to the 20% we want to put down) and he said some outright incorrect information about the amount of time inquiries stay on a report, etc. We did not ask him for any financial advice at all.
My husband was upset that he just sent us off to find our our home and to email him if we found anything we want to buy. We made it clear that we were not familiar with the area and that we would like to walk through some houses.
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