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In the last week or two, I've stepped up my search for a retirement property on the beach, as I'm now about a year away from that move. In searching Zillow and requesting additional information, I ended up emailing several times with two different realtors who, it turns out, work for two different firms (since both appeared in the online ad as contacts, I just assumed both represented the seller). Both ended up providing me with information about the one property - a new listing - in which I had the most interest and questions, although we remain far apart in price and it doesn't appear at this time likely that any sale will happen. I also told each that I was in communication with another realtor. I've now been asked to electronically sign two documents as follows: "The 1st is an explanation of the various types of agency that one can be faced with during any real estate transaction and the other is the actual Buyer Agency Agreement." I've bought four houses and have never heard of such a thing. Just wondering if this is the norm now and okay to sign.
This is probably very good agent behavior, for your interests as much as theirs.
Doesn't mean you have to sign anything at this point, but getting needed documents up front is excellent service.
The Docs have titles at the top.
And, the state you are shopping in is relevant to the conversation.
States have different requirements, and we just had discussion in a long thread about it.
In the last week or two, I've stepped up my search for a retirement property on the beach, as I'm now about a year away from that move. In searching Zillow and requesting additional information, I ended up emailing several times with two different realtors who, it turns out, work for two different firms (since both appeared in the online ad as contacts, I just assumed both represented the seller). Both ended up providing me with information about the one property - a new listing - in which I had the most interest and questions, although we remain far apart in price and it doesn't appear at this time likely that any sale will happen. I also told each that I was in communication with another realtor. I've now been asked to electronically sign two documents as follows: "The 1st is an explanation of the various types of agency that one can be faced with during any real estate transaction and the other is the actual Buyer Agency Agreement." I've bought four houses and have never heard of such a thing. Just wondering if this is the norm now and okay to sign.
Considering how many houses you've probably looked at (since your criteria is that of a needle in a haystack), any agent worth their salt is going to ask that they be your official realtor. After all the work they've done, they deserve a percentage at the end.
In the last week or two, I've stepped up my search for a retirement property on the beach, as I'm now about a year away from that move. In searching Zillow and requesting additional information, I ended up emailing several times with two different realtors who, it turns out, work for two different firms (since both appeared in the online ad as contacts, I just assumed both represented the seller). Both ended up providing me with information about the one property - a new listing - in which I had the most interest and questions, although we remain far apart in price and it doesn't appear at this time likely that any sale will happen. I also told each that I was in communication with another realtor. I've now been asked to electronically sign two documents as follows: "The 1st is an explanation of the various types of agency that one can be faced with during any real estate transaction and the other is the actual Buyer Agency Agreement." I've bought four houses and have never heard of such a thing. Just wondering if this is the norm now and okay to sign.
Through the course of buying a home you will be asked to signed many documents. It is important to understand what you are signing. Of course reading the document is important but if you do not understand it ask for clarification or seek legal advice.
In the example you posted it sounds as if you were presented an Agency Disclosure outlining the duties and responsibilities of the agent and their broker based on the agency relationship you will be forming. Notice that the term used in this document is "disclosure". Disclosure documents do not bind you to the agent, they are explanatory or informational in nature. In most places the state real estate board prefers agents to provide disclosures as early as possible in the transaction.
The second document Buyer Agency Agreement (also called Buyer Broker Agreements) is in all likelihood an employment agreement. Again, the term "agreement". It may bind you to the agent or agency. You do not want to sign more than one of these agreements. You should only hire the agent that you are most comfortable with and want to handle your purchase.
In NC, agents legally represented the seller unless a buyer's agent agreement was signed. That meant your agent was legally bound to represent the seller's best interest until you signed the agreement, which meant anything you told the agent re: the property, they were required to tell the seller unless you signed the agreement.
Up here in MN you have to present "Agency" at first substantive contact". This protects the Buyer. Any good agent wants the Buyer's Rep. contract signed so you are working exclusively with them and they will get paid in the end.
Location: Sarasota/ Bradenton - University Pkwy area
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Originally Posted by otterhere
In the last week or two, I've stepped up my search for a retirement property on the beach, as I'm now about a year away from that move. In searching Zillow and requesting additional information, I ended up emailing several times with two different realtors who, it turns out, work for two different firms (since both appeared in the online ad as contacts, I just assumed both represented the seller). Both ended up providing me with information about the one property - a new listing - in which I had the most interest and questions, although we remain far apart in price and it doesn't appear at this time likely that any sale will happen. I also told each that I was in communication with another realtor. I've now been asked to electronically sign two documents as follows: "The 1st is an explanation of the various types of agency that one can be faced with during any real estate transaction and the other is the actual Buyer Agency Agreement." I've bought four houses and have never heard of such a thing. Just wondering if this is the norm now and okay to sign.
What state are you searching for retirement properties in? Because that does impact the answer to your questions.
In general, the first document sounds like it's an agency disclosure, explaining the various ways the real estate agent can represent you in a transaction. In FL you have 3 options: single agency, transaction broker or no representation. In FL it is assumed the agent is acting as a transaction broker unless you and the agent agree in writing to some other form of representation (or none).
The second document is a different animal. It sounds like the real estate agent is asking you to agree in writing to have that agent alone represent you in your home search for a specific period of time. These are also often called EXCLUSIVE Buyer Agency Agreements. Until you are further along in your search and have actually met with the agent in person and feel comfortable working with him or her, DON'T SIGN IT.
Many buyer's agency agreements require the buyer to pay the agreed-upon commission to the buyer's agent even if that agent didn't end up finding the buyer the home. For example, if you happen to find a FSBO (for sale by owner) property on your own, without the help of the agent. Or you may have to pay a percentage of the sales price to the agent at closing if the offered MLS compensation is less than the amount specified in the agreement as agent compensation. SO READ THE TERMS CAREFULLY. And remember, if and when you are ready to work exclusively with one agent on your property search, you can and should NEGOTIATE THE TERMS of the buyer agency agreement you disagree with.
Until you are further along in your search and have actually met with the agent in person and feel comfortable working with him or her, DON'T SIGN IT.
I'm also in Florida (actually in the same area as Sunshine) and I have a slightly different point of view. As Sunshine mentioned, Florida allows brokers and their agents to interact with buyers in different ways, with transaction brokerage being the default and most common. There are different versions of the Buyer-Broker agreement depending on the relationship and each explains what the agent will do for the buyer and what the buyer's responsibilities are to the agent. Regardless of the arrangement, the agreement also allows either party to end the relationship at any time.
Although I don't ask buyer's to sign the form for exactly the reason that the OP posted, it really isn't nearly as scary as it appears to be. Buyers should understand that they are asking an agent to put in time, sometimes a lot of time, for someone who is perhaps in a different state and who has no particular sense of urgency, with only a remote chance of compensation in the distant future. Considering that the buyer can end the relationship at any time for any reason, it seems like little enough cooperation to sign. Think of it as a show of good faith. Obviously, read it first and be sure you completely understand it.
My only caveat is that there are literally hundreds of good agents in our area who will work with you, OP, for the compensation offered on the MLS so there is little reason to agree to a specific compensation percentage or dollar amount unless it benefits you, specifically. Odds are, I think, that you will find the same situation where you are looking, too.
I'm also in Florida (actually in the same area as Sunshine) and I have a slightly different point of view. As Sunshine mentioned, Florida allows brokers and their agents to interact with buyers in different ways, with transaction brokerage being the default and most common. There are different versions of the Buyer-Broker agreement depending on the relationship and each explains what the agent will do for the buyer and what the buyer's responsibilities are to the agent. Regardless of the arrangement, the agreement also allows either party to end the relationship at any time.
Although I don't ask buyer's to sign the form for exactly the reason that the OP posted, it really isn't nearly as scary as it appears to be. Buyers should understand that they are asking an agent to put in time, sometimes a lot of time, for someone who is perhaps in a different state and who has no particular sense of urgency, with only a remote chance of compensation in the distant future. Considering that the buyer can end the relationship at any time for any reason, it seems like little enough cooperation to sign. Think of it as a show of good faith. Obviously, read it first and be sure you completely understand it.
My only caveat is that there are literally hundreds of good agents in our area who will work with you, OP, for the compensation offered on the MLS so there is little reason to agree to a specific compensation percentage or dollar amount unless it benefits you, specifically. Odds are, I think, that you will find the same situation where you are looking, too.
Recognizing that you are in FL, and maybe things are different...
Generally, I gladly work for the MLS co-broke. Generally.
There is some safety there.
90% of listings in my county offer the same amount, 2.4%, while another 5-6% offer a slice more of the pie.
So, I'm generally comfortable.
But, some may offer $1000, or as happened several years ago, $1.00.
I don't feel greedy documenting that I have to work for more than $1.00, even for the nicest folks.
And, the agreements are not daunting for anyone who can read well. Not nearly as daunting as the pile of documents a buyer will typically blindly sign to borrow money and close on a purchase.
If the law requires a written agency agreement, and the agent declines to document the agency relationship with the consumer but claims to be "their agent," by definition, the consumer is working with a criminal.
Who wants that?
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