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When I first hired a buyer's agent to represent me, I had him make the exclusive representation agreement specific to only one home. I wanted to first see how we meshed (personalities and business-sense) before continue onto other properties. The buyer's agent was very nice and insisted that he didn't want me to sign a representation agreement: If things didn't work out between us, then he wouldn't hold me to a commission if I bought that property through another buyer's agent. I insisted that we sign an exclusive agreeement for that property. He seemed a little offended, but acquiesced.
Eventually we made our written offer. We decided the counter offer was too high. Now I am pursuing another property with my same buyer's agent. However, we don't have an updated exclusive representation offer.
Is it important to have a signed exclusive representation contract that reflects that he is now my buyer's agent for all properties in the area? Can the listing agent deny my buyer's agent his share of the commission if my agent doesn't produce a copy of his exclusive rep deal?
Since my buyer's agent was a little irked the first time I insisted on the exclusive representation agreement: I am thinking about just updating our first agreement, initial + date the changes, and then send him a PDF scan. Is that sufficient?
Some agents like them, some agents never use them. Personally I use them about half the time, depending on the situation. You can get a sense for how the relationship is working or what the clients expectations are. If I get an feeling that the buyer is just using me as a chauffeur and is going to call his brother-in-law once he finds a house I will insist on it.
I won't sign any type of agreement. I expect you to trust me because I am trusting you with FAR more important and sensitive information than you are providing me with. I won't go behind your back to save a buck but if I don't like your style we part ways.
Some agents in certain states have posted on here that these agreements are required in their state. They are not a requirement here in MA and I have never used them. I've never had a problem getting a commission without a contract.
If a agreement is signed and necessary I would want it amended that if you are doing a **** poor job to have the ability to cancel the contract with absolutely no penalties to me and no advantages to you.
Some agents like them, some agents never use them. Personally I use them about half the time, depending on the situation. You can get a sense for how the relationship is working or what the clients expectations are. If I get an feeling that the buyer is just using me as a chauffeur and is going to call his brother-in-law once he finds a house I will insist on it.
When do you insist? When you first meet them or second time around?
I am out of state. Our realtor showed us around when i was up there for 3 days and never mentioned a BAA. He knows i am now coming back up there and i sent him 7 specific properties i am interested in. He told me he wanted to go over everything the week before i came up. I thought he meant properties we will look at and i told him i want to go over them alittle over a week since the week before i will be getting ready to come up. I am leaving wed. He sent me the BAA a few days ago to sign and keeps telling me that i need to sign the documents before he takes me back out. The documents state that he is my exclusive agent for 1 year and that i would be paying a 3% commission. Is this standard? He has already put a bad taste in my mouth sending this to me to sign right before i am leaving. I feel it was done purposely so i wouldnt have time to review them and i would just sign them. If i was just wanting him to drive me around would i be the one doing all the work and sending him the properties?! I dont think so. I have asked on numerous occassions to send me properties and he only has sent me once weeks ago. Nothing now before i come up there.
Please advise.
When do you insist? When you first meet them or second time around?
I am out of state. Our realtor showed us around when i was up there for 3 days and never mentioned a BAA. He knows i am now coming back up there and i sent him 7 specific properties i am interested in. He told me he wanted to go over everything the week before i came up. I thought he meant properties we will look at and i told him i want to go over them alittle over a week since the week before i will be getting ready to come up. I am leaving wed. He sent me the BAA a few days ago to sign and keeps telling me that i need to sign the documents before he takes me back out. The documents state that he is my exclusive agent for 1 year and that i would be paying a 3% commission. Is this standard? He has already put a bad taste in my mouth sending this to me to sign right before i am leaving. I feel it was done purposely so i wouldnt have time to review them and i would just sign them. If i was just wanting him to drive me around would i be the one doing all the work and sending him the properties?! I dont think so. I have asked on numerous occassions to send me properties and he only has sent me once weeks ago. Nothing now before i come up there.
Please advise.
My response to your other post:
Quote:
Originally Posted by MikeJaquish
One year is the maximum the State of NC allows for an agency agreement.
It should not be a problem, since you should NEVER sign ANY agency agreement that does not provide you with the right to cancel the agreement at any time prior to contract on a house.
In other words, the length of the agreement should only be a convenience to avoid completing the form again, not a trap that ties you down for a specified period of time.
No agent is good enough to tie you up for a year.
The commission is spelled out in detail in the Agency Agreement.
It commonly comes into play on a FSBO, more often than on MLS listings. If the agent cannot explain the agreement to your satisfaction, find an agent who can, or have an attorney review the agreement.
Is the agent using the standard NC Association of Realtors Buyers Agency Agreement?
Standard Form 201, which is noted at the bottom right of every page? It is 5 pages long.
You have 2 issues. 1 - the year long agreement. That can be an issue if you decide this agent isn't working well with you. It should be written into anything you sign that you can cancel without penalty if you are unhappy w the service. BUT the agent will likely keep in the contract that you will have to pay him a commission if you buy a property within a certain amount of time of when he showed it to you while this contract is in place. Very fair, because there are people that will use agents then get their out of town friend/relative to write the contract when they find a place.
2 - the 3% commission could be another issue. In my area, there are quite a few 5% listings with 2.5% to the buyers agents. You will be on the hook for the other 1/2% if you buy one of these houses.
I typically do a Non-Exclusive agreement that guarantees me a commission if a buyer buys something I show him and a minimum of 2.5% because we see quite a few listings at .5-2% which isn't an amount I'm willing to take.
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when do you have them sign it?
