Buyers Agency
What You Should Know About Agents Representing the Seller…
If you are the type of buyer who enjoys doing the legwork of the home finding process, you will most likely visit an open house, builder’s model home or Parade of Homes. Or, you may make phone calls to listing agents or builders’ representatives to see a particular property.
You should be aware that in order to have independent representation, you should avoid direct contact with builders’ representatives or listing agents. This includes registering at a new home neighborhood or attending an open house. In the case that you desire independent representation, you should choose an independent buyer’s agent as one of your first steps in your home search. You would then want to sign a buyer’s agency agreement and keep your real estate professional closely involved with all aspects of the home search. Failure to do this may result in your preferred real estate agent being unable to represent you in the transaction.
WHY? Procuring Cause – A confusing term meaning that whoever introduces a buyer to the property he or she elects to buy is entitled to compensation for the sale. For example, if you were to find the home you want to buy while attending an open house hosted by the listing agent, and you were not previously involved with or introduced to the listing by another agent, the listing agent of the home is entitled to both the listing and selling side of the sale, to be paid by the seller. You would only be able to have independent representation in this case if you chose to pay a buyer’s agent his or her fee for representing you.
How to Preserve Your Right to Independent Representation…
There are two things you must tell a listing agent or builder representative to retain your right to independent representation:
- You already have an agent. Give his or her name and phone number to the seller’s or builder’s agent.
- Your agent told you about the property. Have the date and method by which you were told about the property (i.e., by phone, in person, e-mail).
