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Old 04-10-2024, 05:07 PM
 
Location: Cary, NC
43,264 posts, read 77,043,330 times
Reputation: 45611

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Quote:
Originally Posted by Silverfall View Post
I forgot that some places still have subagency. I'm surprised the DOJ isn't all over that. It doesn't make any sense to keep subagency offerings but not buyer-agent offerings.
I know we have subagency in NC for some reason of regulatory malfeasance and ineptitude. I am not sure how many states still allow it.

I NEVER allowed cobroke to a subagent or worked as a subagent.
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Old 04-11-2024, 09:00 AM
 
7,724 posts, read 3,778,838 times
Reputation: 14604
Quote:
Originally Posted by MikeJaquish View Post

Nowhere is buyers agency supported, recommended, or required.

I think it is clear that the aim is:
...To discourage any buyers agency whether the buyer is capable of representing themselves or not.
...To increase buyers costs significantly if they engage an agent.

Saw a local listing with $500 offered to a buyers agent. And 2.4% to a subagent.
$700,000+ and that $17,000+ this is a significant difference if the buyer is not deep pockets.

The only reason to vigorously support subagency over buyers agency is to set the buyer up to get truly hosed.
What is subagency? Please explain how this works.
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Old 04-11-2024, 09:09 AM
 
Location: Cary, NC
43,264 posts, read 77,043,330 times
Reputation: 45611
Quote:
Originally Posted by moguldreamer View Post
What is subagency? Please explain how this works.
In subagency, the buyer is working with an agent who is a sub to the listing agent and that subagent's fiduciary responsibilities are only to the seller. Subagent must be fair and honest to the buyer, but that does not include doing anything that will compromise the seller's position.
So, both agents are aligned against the buyer and are fiduciary to the seller. Both agents are responsible for milking the buyer for every penny possible, and getting the seller the best terms.

It is how it was before the dawn of buyers agency, 40-45 years ago.

In this NC mandated disclosure form, "Unrepresented buyer (subagent)" is the last selection on Page 2.

https://www.ncrec.gov/Forms/WWREA/WW...losureForm.pdf



And:

https://www.ncrec.gov/Brochures/WWREABrochure.pdf

"Q: Can I buy real estate without hiring a real
estate agent?
A: Yes. If the real estate agent or firm that you contact does
not offer buyer agency or you do not want them to act as your
buyer agent, you can still work with the firm and its agents.

However, they will be acting as the seller’s agent (or “subagent”).
The agent can still help you find and purchase property and
provide many of the same services as a buyer’s agent.

The agent must be fair with you and report any “material facts”
(defects such as a leaky roof) about properties. But remember,
the agent represents the seller—not you—and therefore
must try to obtain for the seller the best possible price and
terms for the seller’s property and cannot give you advice on
buying the property if it will conflict with the seller’s interests.


Furthermore, a seller’s agent is required to give the seller any
information about you (even personal, financial or confidential
information) that would help the seller in the sale of his or
her property.


Agents must tell you in writing if they are sellers’
agents before they ask you about anything that can help the
seller. But until you are sure that an agent represents you and is
not a seller’s agent, you should avoid saying anything you do not
want a seller to know"

Last edited by MikeJaquish; 04-11-2024 at 09:20 AM..
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Old 04-11-2024, 12:44 PM
 
8,574 posts, read 12,395,872 times
Reputation: 16517
Quote:
Originally Posted by moguldreamer View Post
What is subagency? Please explain how this works.
MikeJ provided a good answer to your question. I'll give you a small example of how it can work.

When I was still in college, years before I obtained my real estate license and prior to Buyer's agency, I bought my first piece of real estate: a small acreage parcel of land. I didn't know what I didn't know and the agent was certainly not there to help me. What I didn't know at the time was that Michigan law required the Seller to pay for the transfer taxes, absent any written agreement to the contrary. Well, guess what? The agent stuck me with paying the transfer taxes without any mention of the state law. It wasn't a huge sum, but it still highlights how Seller's agents can easily work to take advantage of novice purchasers. After I did a few more purchases and learned a bit more about real estate transactions, I decided to get my real estate license in order to help others avoid unscrupulous Seller's agents. (Yes, there are some out there. ) I always treat each transaction as if it were my own.
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Old 04-16-2024, 12:48 PM
 
Location: Sarasota/ Bradenton - University Pkwy area
4,612 posts, read 7,529,570 times
Reputation: 6026
TOP NEWS
Following NAR input, buyer agent commissions not counted among IPC limits

The National Association of REALTORS® influenced a significant clarification from Fannie Mae and Freddie Mac, with the entities confirming that buyer's agent commissions will not count as part of the interested party contributions limits.

This guidance follows a nationwide settlement facilitated by NAR concerning commission lawsuits, ensuring that despite changes to how agent compensation is listed on MLS, sellers can still cover buyer agent fees as per local conventions.
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