I don't work without a buyer agency agreement. 1. It protects my compensation, I don't want to work for free and shouldn't.

2. It spells out my obligations and what I owe to my client (most important).

3. It eliminates tire kickers if explained properly.

There are many more benefits to both parties but those are a few in a nutshell!

When I am contacted by a buyer I specifically tell them we are in the "audition phase" of this new relationship. There must be trust and a common purpose developed and that takes time. I develop a relationship with my buyers and they with me. After looking at 3 houses, if a good relationship has developed, I ask them to sign a buyer's agreement.
Not every realtor is good for every client and not every client is good for every realtor. I am their consultant and advocate.

Would you list a house for sale without an exclusive listing agreement?

If not, you shouldn't take a buyer out without one as well.

Julie, an old friend taught me to interview each buyer to find out what they really wanted. Upon explaining that my skill and expertise were the best tools to achieve those goals, I was willing to sign a 'Loyalty' agreement with them. My quest to secure their dream home, at the best terms, is my only goal. Since my compensation usually comes from the seller, I ask only that they allow me to negotiate the transaction and walk them through the process. I always sign the paper first, then hand them the pen.

Hi Julie - I always ask a Buyer to enter into a Buyer Agency relationship with me in our initial consultation meeting. In Pennsylvania, we also have a "Consumer Notice" to educate buyers about the laws of agency, the benefits and the responsibilities. Our PA contract may be canceled by either part. I will do a BA contract for 1 day just so I can share my full knowledge with my buyers. They always renew the contract. If someone declines that's ok. It's unlikely that they were serious to begin with.

We just started implementing the buyers agreement. We got tired of spending time with people who ended up buying with someone or somwhere else. We now meet all our buyers at our office (or coffee shop, etc) for an initial consultation and after discussing the needs, wants and timelines of our prospective customers to determine motivation we then explain the buyers argeement in detail. If they don't want to sign we refer them out or just don't work with them. We are in different times these days. People don't qualify as easily as they used to and contrary to popular belief...ha, ha....there are people out there that will waste every minute of time you give them and then dump you at the drop of a hat without an explaination. Listings are the way to the top!!!

I've worked with several buyers who have run from other agents when they insisted that a Buyer Agreement was necessary. I don't use a Buyer Agreement and so far it's been to my enjoyment and profit to pick up these runners.

I understand perfectly well why a Buyer Agreement is desired by the Realtor, but honestly, it has little benefit to the buyer's interest. The same explanations can be communicated to them regardless.

Maybe if I ever get burned by spending a lot of time with a prospective buyer and then lose them it would feel different, but once I have worked with someone for a few hours I know how the thing is going to end.

The biggest danger is when they pass a housing development and stop in to tour a model or to begin a dialogue with a FOR SALE BY OWNER. Yikes - they just have to be taught not to do that without you, so you can actually negotiate for them. Otherwise they are on their own, and if you have an ounce of their trust they will heed your advice.

Tell prospective buyers that you will work like nobody else to earn their loyalty - that you don't believe in holding them hostage to an agreement if they don't want to be there, and that you are not afraid of being dumped overboard if you don't continue to impress them.

This, of course, runs against my ABR training and also the approach adopted by some of the highest producers in the real estate industry. OK, it may not be the answer for everyone, but it is what I'm comfortable with. It hasn't hurt me once yet, and like I said earlier, it has helped a number of times.

I had a nice couple that was recently engaged that I was working with. We had signed the agency agreement together on our second outing after a good relationship was established. They went to an open house one day without me and fell in love with the house. The listing agent had written a contract with them and they called me the next day to look at another house just in case they did not get that one and reported back to me about the offer. They were confused and thought I was still in the picture. I explained how it worked and they were distraught about it. I work in a small community 22 miles north of Wichita, KS and we all cooperate on our listings. Since the listing agent was a straight up guy, he asked me to send him the buyer's agency agreement and I was at the office so I immediately faxed it right over to him and he accepted it and admitted he just wanted to sell his listing so he acquiesced the selling side of the deal. :) My clients were impressed with how quickly we resolved the situation to move along with the negotiation process to contract. We came to contract, however during the negotiation from inspections the deal fell away. The next month I helped them to buy a house and listed their prospective homes. After a year in their new home together, they decided to sell and get a bigger home, so once again I was able to help them to buy and sell. 5 transactions from a couple that I met at an Open House! Needless to say that I believe firmly in agency agreements and Open Houses!

In Michigan many firms have changed from buyer/seller/dual agent offices to designated buyer agent/designated seller agent/dual agent offices. And by statute law those licensees must sign a designated buyer agency agreement with a consumer to represent them.

However, we find a lot of licensees are more comfortable breaking the law and mis-representing their service by saying they are buyer agents after they present the disclosure form.

So, it gets a bit complicated.

As far as our office, we are an exclusive buyer's agent company (Never take listings, never represent sellers) and consumers see the benefit of having someone on their side or they wouldn't walk in our front door. Signing an agency agreement really isn't a problem for us.

Good luck!

In Connecticut it is the law that a Licensed Real Estate Agent enter into a Buyer Agency Agreement before being able to take a person/client into a listing that is under a different Brokerage Firm. I tell clients that this protects their interest in that I may not share any of their personal information they have shared with me, with any other Real Estate Agent (including their price range). I will work with someone for the day on the premises that I prove my capabilities to continue working for them. I don't mind showing people that I do indeed have their best interest at heart and for that I'd really appreciate them continuing to work with me so that I do eventually get paid by the Selling Agents' Commission.

julie: My wife and I working as a team had been in the business for several years when the buyer agency concept finally crawled out of the woodwork. We saw the advantages of the contract but had the same thoughts you talked about. Our solution: Following the initial consultation we explained the agreement and told the prospective buyer(s)that we would like to work with them for the whole day including showing them several houses. If at the end of the day, they wanted to bind us as their agents, then we would complete the agreement. If not, then we terminate the matter with our best wishes. This approach worked very well for us. Good luck.

Until you have a buyers contract you are a sub agent. Some brokers do not compensate sub agents. You should not be providing the same level of service as a buyer's rep. Take the ABR course for a better understanding.

I AM A TEXAS REALTOR AND LOYAL ADVOCATE FOR BUYER REP AGREEMENTS I WILL NOT WORK WITH A BUYER WHO DOES NOT SIGN A REP AGREEMENT WITH ME AND PAY ME A NONREFUNDABLE RETAINER THAT SHALL ONLY BE REFUNDED AT TIME OF CLOSING AFTER ALL BROKERS FEE'S HAVE BEEN PAID AS SPECIFIED IN THE AGREEMENT. I AM A PROFESSIONAL AND TREAT MY BUSINESS AS ONE. I DON'T HAVE A PROBLEM HAVING THEM SIGN ONE. MOST OF MY FRIENDS IN REALESTATE THINK I'M CRAZY BUT I ELIMINATE ALL TIRE KICKERS. I GET ALOT OF REFFERALS I HAVE BEEN DOING THIS SINCE 1995. I TELL PEOPLE THEM WHO DO YOU WANT ON YOUR SIDE WHEN YOU ARE BUYING. I DO THIS FULLTIME I DON'T HAVE ANOTHER JOB OTHER THAN WORK FOR YOU DURING THIS PROCESS. YOU ARE PAYING ME FOR MY TIME AND EFFORTS UP FRONT. BUYING A HOME IS NOT A ONE DAY DEAL I WANT YOU TO BE CONFIDENT ABOUT YOUR PURCHASE AND MY RETAINER SHALL BE APPLIED TOWARDS YOUR CLOSING. ALL IN ALL IF THEY DON'T BUY I STILL GOT PAYED FOR MY TIME AND KNOWLEDGE.

As the saying goes . . buyers are liars and is so true,as Mike Jones suggests Listing is still the name of the game and I concentrate my time looking for listing. So far 18 I need another 18 by years end.
Good Luck to everyone.

Just follow the law: In Missouri; "designated broker acting as a single agent for a buyer or tenant shall enter into a written agency agreement with the buyer or tenant." The word "shall" makes it required. My "real" buyers want to be represented by an Exclusive Buyer's Broker. We have absolutely no push back, our buyers respect that if we protect our time, we will also protect their time and interests.

I certainly understand your hesitation. On Long Island, we are stuck in the dark ages and many buyers just do not understand why I would have them sign a buyers agency form. I explain agency to them,get them to sign that form and take them out to show them homes. When we end for the day, I ask them if they would like to continue working with me and then I have them sign the form. If they are reluctant, I do not push and will try again on the second showing.

I have found that the most useful reason for using the buyer agreement is when writing offers on For Sale by Owner properties, as this ensures compensation.

Hi Julie,
It is unfortunate that your first introduction to a buyer agency agreement was the scenario of feeling trapped and without many good options. I believe that most home buyers would feel exactly the way you felt. Having said that, I understand your comfort level in working with your purchase the second time around. However, as you work with buyers, do consider the value that you bring to each buyer and offering to work with a buyer without an exclusive agreement for representation leaves you running your business without a guarantee of loyalty. No one can determine whether a buyer will purchase or lease property but without an exclusive agreement of loyalty, this leaves you providing value with nothing other than a hope that SHOULD a buyer be "ready, willing and able", they would work with you moving forward. I believe a good buyers' agent is priceless and by spending quality time up front in conducting a buyer counseling session (rather than just showing property)in order to determine the buyers needs and wants, you should be able to determine whether you believe you can assist that particluar buyer in their search. I agree that buyers will not feel comfortable but trapped when you force an agreement on them however, with the demonstration of listening skills, market knowledge, negotiation skills and with the proper scripting most buyers will agree to be loyal to an agent that demonstrates this value. Please do consider the ABR Designation Program from NAR as a designation that will assist you in not only understanding the value a buyers agent brings to the transaction but also reinforce and instill within you the confidence & passion to ask for a signed agreement and perhaps consider not working with a buyer that won't sign this agreement.

Julie, I have several friends who are brokers in Virginia. They tell me that they ask for the agreement to be signed when the buyer is ready to make an offer. It sounds so easy that way. And since at that point the buyers have a vested interest, they probably are very willing to sign a document that will assure them representation during the negotiations. But does that really make sense? When you are taking them out showing them house after house, who are you representing during the showings? If the homeowner is home during a showing, who represents him or her should the buyer ask a question? (In my office, if an agent wants to show one of our listings as a buyer's agent, the listing agent must accompany the showing so that the homeowner is less likely to say something that might comprise him/her).
I much prefer to ask the buyer to sign a buyer broker agreement when I first meet them. They usually don't (on Long Island it's still not very common), but at least I know who I am representing throughout the entire process.

In the initial meeting, building a better rapport with the customer could be the answer to your problem. Take an interest in them other than the task at hand. Find out about who they are. Lighten the mood and make them smile. Your speech and body language should be relaxed and fully confident. Listen and fully consider their questions by pausing before you answer. If you've built up the right rapport mixed with proper questions to show knowledge, finishing up the "final paperwork to get started," shouldn't be a problem.

Start with the Agency Disclosure form. I would say "By law I am required to disclose agency and ask whether you prefer me to a) work on the behalf of you, the buyer, or b) the Seller?" If they say they want you to represent their best interests, tell them you may and present the Agency Agreement Form (AKA Buyer-Broker.) Practice your explanation of the agreement and have them fully understand how working with you as their Exclusive Rep will benefit them.

If they refuse to sign, you'll be better off spending your time with people who are serious. At that point shake hands and part as friends. Your lack of desperation will show your strength as an agent. They'll call you back to sign.

Agency Law in the DC area is pretty clear. At our first meeting with a client, we must disclose, in writing who we are working for. Without an Agency agreement - if we are showing a home - we are representing the seller.
An Agency agreement not only sets the standards of what is expected of me, as their agent; but it's the law.
Now do I require a long-term commitment right at the start? No. I will gladly agree to a week term to start and we can renew if we BOTH AGREE that we wish to continue our working relationship.

In 30 years I have not used a Buyer Agreement and I have not lost a SERIOUS buyer.
I ask them if they're already working with someone. If so, do they want to continue with that person?
I endeavor to find out that they're in a financial
position to buy, either then or in the foreseeable future BEFORE showing property.
I ask plenty of questions and do some serious property research to avoid being a free "taxi," and usually limit the properties to five in one day; they're not going to remember more than that at one time.
If I inwardly question our rapport, I ask them if they are happy working with me or would rather find another Agent? I've never lost a buyer for that reason.
Be honest, be caring, be knowledgeable, think about the buyers and their needs, not yourself; success, referrals and repeat business will follow.
Always remember that buying real estate is a major decision and probably the most expensive purchase they'll ever make; they need to FEEL right about it. It should be a rewarding experience.
Personally, I would not want to sign a Buyer Agreement prior to deciding I wanted to work with that Agent.

Julie, I don't regularly use a Buyer's Agency Agreement. I have attempted to use it in a few instances, but find so much resistance, that it makes some people leary about my motives. They don't like signing anything without the oportunity to see if there will be a good rapport. So I let my "charm" do the work and in --knock on wood- the past year, have not had any client wonder off, that is, the ones that I didn't want to wonder off. I think a sincere, honest relationship is the true Buyers Agreement that the client is looking for.

I have been in the business for almost 5 years now and a Buyer's Rep. agreement is required for me to close my file. I do, however, meet with potential buyers first and work with them the first day on the agreement that our representation is for that day and the properties that I showed that day only. I also specify the MLS #'s of the homes that I showed them. Then if we both decide to pursue the Realtor/Client relationship, I have them amend this agreement and extend the date. If you think in terms of an attorney, he may meet with you initially for a consultation but will expect a client agreement if you wish to move beyond that initial meeting. This is how I approach my business with my clients. I add tremendous value to the home buying experience and if they are not willing to sign a client agreement with me, then they are not going to prove loyal throughout the transaction and will most likely be the buyer that goes directly to the builder or listing agent after all of my hard work and makes an offer without me.

In Connecticut, agents may not show listings from other agent's offices unless they have a written buyer agency agreement with their buyers or have a written subagency with the seller.

Here in Texas our "Information About Brokerage Services" disclosure is required to be given at the point of "substantive dialog." I give this to my customers first, then explain that Texas has something called Subagency. If I am not under a written agreement with the buyer, then I am a subagent of the seller of any properties I show them from the MLS. This means that I am obligated to disclose to the owner any material information I obtain from the potential buyer.

All of this information is in the official Brokerage disclosure I gave them and I haven't had any problems getting serious buyers to sign the Representation Agreement. I do sometimes offer to make it for a single property or single day, but a serious buyer will ask me to write it for a longer date so they don't have to sign the whole Representation Agreement again in a week!

I'm sure each state is different regarding subagency, but this works in TX.

Julie, we have always implemented the requirement to have a Buyer Representation Agreement signed by both parties before taking on any client. However, the Realtor community does not adequately recognize and take measures to honor Buyer Representation agreements! Listing agreements are always honored (or very rarely infringed upon by other Realtors), while it is commmonplace for other Realtors to attempt to circumvent a Buyers Representation Agreement. There is no equal reciprocity between Listing Agreement Agents and Buyer Representation Agreement Agents! We have found that even when disputes regarding interference by other Realtors to our Buyer Representation Agreements have been brought to Arbitration, the circumventing agency always wins! Buyer representation agreements are imperative, but not fairly supported by Realtor Ethics, Arbitration Panels or Ethics Panels as are Listing Agreements!!!! Sad but true!

Have any of you heard of implied agency? You can pay big in court if a buyer thinks you are representing them and you don't. Making sure both parties understand who is being represented and who is not. It is extremely important not only from a liability standpoint, but also in a fiduciary standpoint. In Minnesota, we have to let potential buyers know at first substantive contact the different agency relationships realtors have. If you don't have an agency relationship, you automatically default to a facilitator - who represents no one, then you have to remind them if you are showing one of your company listings that you represent the seller. If you don't know who you're representing - trust me the buyers don't either - make it clear - have buyer agency agreements signed if you plan on representing!!!

I believe the Buyer's Agency agreement protects both the Buyer's Agent and the Buyer. If you are working with someone who is not under an Agency Agreement, you are working with them as a customer, not a client. Therefore, you are working as a sub agent to the seller and must disclose information you learn about your customer to the seller. If your prospect signs an agency agreement, they are now your client and you may keep any information they disclose conficential. I vote for the 24 hour or one day agreement, gain their trust and extend as you move forward.

I do not require a buyers Rep to be signed. I explain that we need to get to know each other first. How do we know we will like working with each other? I don't need a contract for customer loyalty. I earn it

I am fairly new and have not yet been licensed for a year. I was working with an investor recently and had the opportunity to get the buyer/broker agreement signed. Unfortunately, because of the willingness of the buyer to sign, I trusted her and thought she would be loyal. After several low-ball offers and miles and miles of driving her around....she went back home. I received a phone call a couple months later from her asking me to represent her on the sale of a property we had put an offer in on. The owner of the property supposedly had contacted her directly and negotiated a price (which was basically the price I had negotiated minus commissions). The listing had expired by that time and she offered me $3000 to do the transaction. I declined her minimum wage offer and fired her as a client. GET THE BUYER/BROKER AGREEMENT SIGNED!!!!!!!! I will never work hard without one again... I lost a $15,000 commission because I trusted the client. DO NOT TRUST THE BUYERS!! THEY ARE LOOKING OUT FOR THEIR BEST INTERESTS...NOT YOURS.

I have met with some hesitancy regarding Buyers Agency Agreements but this usually goes away when the buyer understands that without it, I work for the seller's best interests. Most buyers I have worked with want the assurance of a dedicated representative and will sign the agreement. I do not insist on the first meeting although I present it and explain the value of signing it, but sometimes it gets completed after we have established a level of trust and comraderie.

When I was in my first year 2001, I had buyers that found the perfect house. They called me after thinking about it and told me that they were going to bring their cousin, a Realtor with to help them with the countract. The first thing I had them do was sign the buyer broker contract. The cousin/ Realtor, who showed up a bit after that was anything but helpful. He was lining out major sections of the EM agreement. It just got ridiculous. I told the buyers that I would not continue with the cousin/ Realtor as part of the process. The cousin/ Realtor said "good I will write the contract for them". I showed him the buyer broker contract and the buyers wrote the offer with me without the cousin/ Realtor. I find that it is helpful in two other areas, FSBO's and discounted buyer's agent comissions. I don't think it is reasonable to have a lower buyer broker comission with gas prices the way they are. With the FSBO's I can usually get the seller to pay some comission, that way my buyer isn't paying the entire fee. I also have the FSBO person sign a paper that states I am only representing the buyer and they are representing themselves or can retain assistance with a lawyer or another Realtor. That way I get to fully represent my buyer's interests. This has benefited my buyers more than once! I will continue to do it. Recently with the foreclosure upswing, I find that they are even more important. With all the additional work that has to be done to get a foreclosure sale closed, I want to be sure I am paid. I am not interested in doing it for free. So Buyer broker is the way. I usually ask for more comission for both short sales and FSBO's, since there is more work and or liability. Most people are fine with paying extra.

About timing. I don't think it is a good idea to ask right off the bat. I will meet and take them on a tour before asking for the contract to be signed. I want to make sure that it is a good fit for both of us.

I am a firm believer that the potential buyer client and broker should meet first with the sole purpose being to explain agency, highlight broker services and to see if the two are compatible.
If the buyer client says no to that then they probably just did you a big favor.

I always do a BA contract up front. How can I represent the seller in a sub-agency situation, then turn around and be a BA on the same property later? Doesn't work; it has to be done at the start. I don't have trouble getting them signed; It is easy to explain who I work for with one and without one. About half our area listings don't offer sub-agency compensation, anyway.

We eliminate the timeframe lock-in fear with a clause to let them out if they aren't happy. Anyone who won't sign a BA like that is trouble I don't need.

I actually wrote a blog about this exact topic a few weeks ago. When I first started I only asked them to sign one when we sat down to write an offer. Now, I ask them to sign the Disclosure of Brokerage here in VA, and that's it. I figure, if I am just filling in "N/A" and $0 throughout the whole thing - why bother?

Here's the link to my blog about this: http://activerain.com/blogsview/675249/I-Want-to-be

Julie,

It's all about self-respect.

I was very uncomfortable with the BA contract at first because I saw it as one-sided and just a way to trap clients into a long term commitment with an agent. I thought, as a buyer, I would never sign that myself! Then after years of serving buyer clients, I discovered how much work it could take to close a transaction with a buyer if you do a great job of professionally representing them. Unlike some buyers assume, we do a lot more than open lockboxes!

The key is the initial consultation - where you establish your professionalism and outline all the many services you provide all your clients throughout the transaction. If you do this effectively, the clients will start to understand that a professional like you cannot afford to give their time away to clients who are not serious buyers or don't like commiting to a Realtor. Also, if you're willing to run across town to open a door every time someone calls - without qualifying them or establishing your value, you (and your clients) will start to believe that you really aren't worth much - there are a thousand realtors in your market who can do that - and you will alway struggle with expecting loyalty and commitment from buyers. It should be just the opposite!

IF THEY UNDERSTAND UP FRONT HOW HARD YOU WORK FOR YOUR CLIENTS, THEY SHOULD FEEL EMBARASSED TO EXPECT YOUR SERVICE FOR FREE AND BE GREATFUL TO HAVE FOUND A PROFESSIONAL LIKE YOU!

Recently, I began requireing 3% commission in my BA agreements because of our foreclosure/REO market in CA. I simply explain my services, how Realtors get paid, and how some sellers (or Lenders/REO banks) try to make extra money by not paying the standard commission to the agents. So if the Sellers don't pay the full 3%, I will work to negotiate a lower price for the Buyer, and the balance of the 3% will come out of the Buyer costs in escrow.

I have to admit, I have not always asked for a BA (family members, quick offers, some investors), but I can say that everytime I have tried, no one has ever said "no."

Thanks for helpful info/insight. here's my opinion, I am advocate for Buyer's Agency. Sadly in my area, Agency is not understood,
NYState law, if you have had your license for 15yrs you never have had to take a class again!
I work with these dinosaurs it is very difficult,they don't Know or understand Agency Law, (or other laws that have changed) because 'they've done it like this for years'.
Most Local Realtors rep the seller or practice dual/designated agency (which in my opinion is "intellectually dishonest" since The list Broker Must OVERSEE their Agents. who's hand is in the cookie jar!)

Buyers shouldn't be forced to sign anything. I explain agency at first meeting, that I am a seller's agent unless they want representation. Our NY agency disclosure is explained and gets signed.

My buyers get a choice to sign a buyer agency contract AFTER they understand it!
Why wouldn't a buyer want Care,Confidentiality,
Loyalty, Obedience, Accountablity,Duty to Disclose,& Someone looking out for their interests?

YES I always do a buyer agency contract with Each offer.
In my area many don't know/understand agency.
Due to this lack of knowledge, some Realtors don't offer compensation to buyers agents so I HAVE to have contract w/buyers to get paid.

on the flip side: My sellers understand 'vicarious liability' they rarely offer compensation to subagents just fee to broker or buyer agents.

I routinely get calls from brokers they don't know how to be a buyers agent and/or don't know what broker agent means. unfortunately they also refuse to show my listings, unless they can be a sellers subagent! I have Docs from agents signing as subagents of the seller and they are related to the buyers!!! Here,most agents refuse to represent buyers!
Yes It's More business for me but a sad statement for realtors promoting: "working for buyers & sellers"

Buyers should always have a choice to read & understand before they sign and be given ample opportunity & a real explanation 'what it means'

more of my opinion,sadly, part of the mortgage/bank crisis is because buyers often get little or no representation!

Agency is in the courts more and more
It should get more attention!
thanks MaryEllen

Hi Julie- On my initial conversation with a buyer I explain that I work under contract for both of our benefits & go into detail exactly what I do for them. I will give them "ONE" complimentary day of showing properties which is explained in our initial meeting and then if they feel comfortable with me & my services I have them sign the agreement at the end of the day (or) I give it to them to take home for review and ask that they return to our next meeting with it signed. I find that this approach is very successful and does not seem pushy to the customer.

Mike Jones wrote:

I understand perfectly well why a Buyer Agreement is desired by the Realtor, but honestly, it has little benefit to the buyer's interest. The same explanations can be communicated to them regardless.

I respectfully disagree with Mike that a Buyer Agreement has no benefit to the buyer- and I explain to them why during my Buyer Counseling Session. As an agent who is not guarenteed compensation with an unsigned buyer, I have no motivation to "go that extra mile" or even make myself available to show property if it is slightly inconvenient. I go all out for my Buyer Clients. I want to provide that top level of service that I reserve for clients--not customers. That is the only way I work. I do not ask them to sign right away. In fact, I encourage them to think about it at least over night. Consequently, I do not take buyers out to properties on the same day as the Counseling Session, but if I do, the agreement will be signed before I get in the car.

Has anyone STOPPED to Think the Legal Issues. In Texas most Broker's do not accept Sub Agency, according to the Texas Real Estate Commission and the Real Estate License Act, you (the agent) must represent someone. If you do not have a buyer's rep signed and you proceed to show another Broker's listings. Are you sharing confidential information by giving any advice or opinion to the buyer when you should be working in the seller's best interest? Who do you represent? Is the person your opening doors for tresspassing since they are entering a seller's residence without permission or consent of the seller. Remember that the seller signed an agreement stating they would not allow sub-agency. Are you (the agent) participating in a criminal act? You shouldn't be in another broker's listing who doesn't accept sub-agency unless you have a buyer's rep. If you don't represent anyone, you could be acting as an undisclosed dual agent. This is a major NO NO in the state of Texas.

WOW- I just read through everyone's comments, and it seems to me that opinions and procedures vary greatly, and can highly depend on which state you do business in. Illinois is a 'Buyer Agency State,' however it is not REQUIRED that you have a Buyer Agency Agreement. It IS required that you explain Agency Relationships though.

I work mainly in a County dotted by small town and rural communities. Honestly, the buyers in this area (and I'm sure many other areas as well accross the country) just don't know or understand all of the laws, rules, and regulations that go along with doing business as a licensed real estate professional. It is our job/responsibility/duty to inform them in a way they can fully understand.

In my 5 years as a REALTOR, I have had many clients show me the upmost loyalty, and I've also been burnt by ones I though were loyal, and turned out not to be. Face it, our competition is not just other agents, it's anyone who has a property to sell. Listed-Not Listed-Advertised-Not Advertised. I do not believe any one of us wants to work for free, but the majority of us probably end up doing just that more than we ever thought we would.

I have never used a Buyer Agency Agreement. Not because I don't want to, but because I am not sure how to present one effectively. I am working on that! I believe in the principle of working Smarter, Not Harder, and using a Buyer Agency Agreement is a tool that can help with that. The ability to get a buyer to sign this agreement is directly related to how confident you are in explaining it. There is one benefit to an agent when he Agreement is used- security of getting paid. But there are many benefits to the buyer: Their agents Loyalty; Help with any property (including FSBO); Knowledge that you are truly representing them, and not the seller; and A clear, written description of what you will be doing for them. Using this Agreement properly can take some of the worry and stress off the buyer, making them more relaxed and easier to work with. I say learn how to use and present the Buyer Agency Agreement. Get it up front. If you properly explain it to a buyer, and they do not want to sign, it's your choice after that. How willing are you to take the chance (again) that you are working for free?

My first classes I took after receiving my license were ABR classes. We had personally had a very costly experience with a real estate agent who didn't know her stuff! I try to always meet with a customer first (before looking). I explain the Buyer's Agency but I go one step further, I remind them they can fire me but I can also fire them. I explain the difference between a "customer" and a "client" and how the Buyer Agency Agreement raises the bar of my fiduciary responisibility. Remember we do not owe a customer the same degree of responsibility and service we owe a client. I also explain that with gas prices as high as they are I want to deliver the best service and make the best use of their time and mine. I think the best thing I ever learned in ABR classes was that there is a difference between a customer and a client and to communicate what value I am bringing to the client when we have a Buyer's Agency Agreement. I have only been turned down once in two years and that customer had had a bad experience with a REALTOR who tried to make him pay a commission to her on a contract that fell through. I acted as his transaction broker. He would ask a lot of questions and I would always take him back to "I can't advise you as a TB I can only advise you if you are my cient" he said next time he would have a Buyer's Rep because he saw how much he didn't know and needed help. It is especially critical for us because we live in Alabama which is the ONLY Buyer Beware state. How can a Buyer Beware if they don't know to ask?

This has been fun, i'm wondering if this was a staged question to see how we all would answer it.
Anyways, has/does anyone ever consider the consequences of the laws of your states regarding agency and contracts. I'm in Minnesota and if our commerce department randomly pulls one of our file and finds contracts not filled out completly or correctly asking for compensation and how it was to be paid that there is no contract and the commerce department will demand you give the commission back to the buyer and the fine you too.
If we don't follow our laws
and rules of our states and associations how can you call ourselves professionals.
Good luck out there, becuase if your commerce department is like ours you won't have to worried about collecting commissions.
FINALLY, if we would all treat the consummers the same WITH IN THE LAW this question would never have been brought. THE CONSUMERS would expect this from every BROKER.
Its the willy-nillies and the whiners out there that are undermining our profession.
Hey ask your broker its thier license your messing with.

I enjoyed reading all the various opinions from agents. Florida requires a buyer to sign a single agency disclosure at the first meeting prior to showing property. Buyers are leary about signing anything. I have been in the business for 22 years and have been burned by not having a written agreement. I have a great buyer presentation now that outlines all that an agent does on behalf of the buyer. My goal is all buyers on a contract prior to showing property but many refuse. I obviously need to practice my approach because if many other agents get one signed then I can.

This question always brings up the question of trust - do we trust the Buyer to be loyal to us and does the Buyer trust us enough to sign the document. Since trust is earned by actions over time, the answer, in the beginning, has to be "no". So, then, the question gets down to the fundamental and disquieting issue of whether or not we, as agents, are willing to coerce someone into signing a document against their principles and common sense. As to me, I work really, really hard to deliver the best service, and have never lost a client due to not having a Buyer's Representation Agreement signed up front.

In MA it is simple. You need to explain agency, and if a buyer is not under contract your loyalty is to the seller.. even if you have never met them. Simple. It is not in the best interest of the buyer to work with an agent that is obligated to looking out for someone elses best interest.

As a trainer, I have always said the problem is NOT with the buyer's rep but with the agent who doesn't know how to present it. I don't start the car without one. I start with a consultation with the prospect, and in Texas by law we must present the Information about Brokerage Service. As someone else stated, if we have no buyer rep agreement, we are working FOR the seller and WITH the buyer. I think explaining that is enough to get it signed. I will deal with reluctant people and make it for one day only. I tell them that if at the end of the day we're getting along well, then I'm going to ask them to change and extend the date. Like another comment, I make sure they understand they can fire me without any argument from me which probably increases their comfort level. I've never, in 35 years, had anyone do it! I know what I bring to the transaction in the buyer's behalf; therefore, I'm very comfortable presenting the buyer's rep agreement. Applause to the comment about being uncomfortable and learning to get more comfortable. I always tell buyers I only work FOR buyers not WITH them. I think it's equally important to know when to shake hands, say "I'm sorry but I'm not the right agent for you" and stop wssting my time. At a certain point it becomes how much money am I losing per hour? Sometimes personalities just don't click, so accept it and use the time doing something productive and/or fun!

I live in a very small town and most people are used to doing things on a handshake and promise. Like another poster mentioned I explain we are in a trial phase. After we have looked at a few houses if we seem to gel then I ask them to sign the buyer agency agreement. I never start that way but by the end of our first outing I have one in the file.

Thank you for this thread. It was very interesting and I think I will have every buyer that I work with sign a Buyer Agency Agreement after the second day we work together. Two days of my services for free then I agree...they can surely sign and commit!!

Hi Julie:

I found explaining the Buyer's Agency Agreement a little tedious at first. My broker helped me get over that hurdle by telling me to explain to potential buyers that they need sign a Buyer's Agency Agreement only on the properties I show them. They come in for an interview and are qualified. Then we look at properties on the MLS and those they wish to see are specifically stated on the Buyer's Agency Agreement. This makes it less intimidating for Buyers. Generally, the Buyers will make a decision on one of the properties I've shown them.

My buyers get a personal Home Buying Consultation at my office which lasts for about an hour and a half. I explain to them what to expect throughout our journey together in the home buying process. I let them know how I will help them throughout the process. Then I ask for their loyalty. I have not had a problem getting clients to understand the form or why it is necessary. Feel free to contact me for a copy of it.

Alot of this debate hinges on things like where you do business (is it a legal requirement), do you have a loyal referral base or maybe you've been doing business a certain way for decades where it hasn't mattered if a buyer agreement is in place.

The bottom line is that we owe every one of our buyers a fiduciary duty, which in my opinion begins at the first in-person consultation. Post-consult I ask that my buyers sign an agreement, which reinforces my duty to "do the right things" by them and in return ensures (at least in their mind) that I am compensated for the time I invest in their interests. At the same time, I also let them know that either party can opt out of the contact at anytime. I agree with those that mentioned that positioning of the agreement is key. It needs to be in the tone of "win-win". At the end of the day you win some and you lose some, but you always win with those that are serious.

I've been practicing real estate in Sacramento, CA for the past five years, and have just started using the BA Agreement. After having the rug pulled out from under me a few times, I finally got smart. However, some people simply refuse to sign a BA. I work with a lot of horse owners looking for rural-residential properties--very independent minded folks. I am also working on how to better explain the BA Agreement. I need some sort of "script"--anybody got one out there?

Lots of interesting perspecties here.

In Michigan companies who practice "designated agency" must have a contract signed to represent buyers as a "designated buyer agent".

Since our office provides buyer agent services and not designated buyer agent services we can work for buyers without a written contract.

Instead, a lot of agents in our market lie to home buyers and end up being dual agents.

Confusion caused by poorly written laws. (Written by our state association of REALTORS.)

Regards,

Jon Boyd
Exclusive Buyer's Broker
The Home Buyer's Agent of Ann Arbor, Inc.

The buyer agency contract in NY has good "stuff" with respect to the responsibilities that do and don't fall to the real estate salesperson. We introduce it a the point that a property has been located (not before) because the content works for both ourselves and the buyers- clarity. Requesting that it be signed before we've (as we see it- opinion) "done our job" seems intrusive, and this method has worked for us so far.