Buyer Agency Agreement

A Customer is a buyer not under buyer agency contract.

A Client is a buyer under Buyer Agency Agreement

1. Confidentiality:
As a buyer's agent, I am obligated to keep any and all information about you, as a client buyer, confidential. You have a right to this confidentiality, as would a patient when confiding in a doctor. Lets say when I am presenting an offer on a property that you want very badly, the seller turns to me and asks why you want this particular house. I know that by disclosing that information, the seller's negotiating position will be strengthened and disclosing that information will weaken yours. Under the guiding rules of confidentiality, I must not disclose your motivation for wanting the house.

2. Disclosure:

It is one thing to keep information private, it is quite another to be obligated to disclose all you know. In the above example, if you are a customer and not a client (under agency contract) then I am not a buyer's agent, but a seller's agent. Any and all information I know about you as a buyer I must share with the seller. For example, I must tell the seller how much you are willing to pay for the house and all other relevant information I have about you as a buyer.

3. Counseling:

Another benefit to you when using the services of a real estate professional is the advice that professionals can give. As a buyer's agent, it is my obligation to provide you, my client, with advice that will best suit your needs. However, remember that without having formed a buyer agency relationship in writing, I will be deemed to be a sub agent to the listing broker of the home you will eventually buy. That means I have no obligation whatsoever to counsel you as a buyer in any way. My obligation to counsel has been transferred to the seller of the property that you as a buyer customer (not under contract) eventually buy.

As a buyer client to me, you will receive DAILY automated listings fitting your dream home criteria. You will get the scoop on new listings before any other buyers. All you have to do is contact me to let me know which home you would like to see. You may also drive by to the interested properties as they will all have an address?!

WHY BUYER AGENCY CONTRACT?

COMPARING SERVICES PROVIDED TO CLIENTS AND CUSTOMERS
If in a dual agency situation, then full disclosure, undivided loyalty & confidentiality are withheld.

NEEDS ASSESSMENT- SUMMARY OF DIFFERENCE
Buyer - Customer		Buyer - Client (Under Agency Contract)
Maintain loyalty to seller's needs.		Pay full attention to the buyer's needs.
Tell seller all that you learn about buyer.		Buyer can talk freely.
Focus on the seller-client's property.		Suggest alternative solutions.

PROPERTY SELECTION - SUMMARY OF DIFFERENCE
Buyer - Customer		Buyer- Client (Under Agency Contract)
Get the best offer for the seller-client		Find the best property for the buyer-client.
Limit properties to listed properties only.		"Leave no stone unturned."
Lower level of responsibility to buyer-customers.		First opportunity to view new listings. (Includes "for sale by owners)
Show properties listed within buyer's affordability range.		All properties are available.

VIEWING PROPERTIES - SUMMARY OF DIFFERENCE
Buyer-Customer		Buyer- Client (Under Agency Contract)
Just the facts.		Ok to give advice with facts.
Protect the seller.		Educate the buyer. Provide CMA & interpret for the buyer.

NEGOTIATING THE PURCHASE AND SALES AGREEMENT - SUMMARY OF DIFFERENCE
Buyer - Customer		Buyer - Client (Under Agency Contract)
Disclose only material facts about the property to buyer-customer.		Educate the buyer.
Negotiate on behalf of seller-clients.		Negotiate on behalf of buyer-clients.
Volunteer a CMA for the buyer only if it supports the seller-clients' listing price.		Provide price counseling for a buyer-client.
Attempt to negotiate approved protective clauses into the purchase agreement to protect seller-client.		Suggest approved protective clauses for the purchase agreement to protect buyer-clients.
Suggest financing alternatives to buyer-customer in order to help benefit the seller-client's interests.		Suggest financing alternatives that may be in buyer-client's best interests.
Continue services to seller-client during negotiations		Continue services to buyer-client during negotiations.
Strengthen of the seller-client's negotiating position.		Strengthen the buyer-client's negotiating position.
Share all information about buyer.		Share all information about seller.

Thoughts about Buyer Agency Agreement from my point of view and

Buyer's point of view

My View on Buyer Agency Agreement:

I prefer to make its points clear by verbal explanations and to rely on the trust that I try to build between my clients and myself. In any case, my general assumption is that a mutually understood agreement -- holds until my client and I have brought things to an appropriate conclusion.

Regardless, however, I depend on earning sufficient trust in my knowledge and advice to retain my relationship with people, rather than insisting on a written confirmation of it or refusing to cancel things if someone starts to lose confidence in me.

My principal is to look after my clients' best interests and is in effect from their initial contact with me and I rely on earning people's trust by the interest I show in helping them make the best possible buy . My overriding concern is to serve people to the ultimate degree regardless of when -- they plan to make a purchase.
I provide each client with whatever information is relevant and won't stint myself in the help I'll offer to people who get in touch with me.

A signed Buyer Agency Agreement will eventually become part of my relationship with a client, after I demonstrate my interest and ability to be of service and as confirmation of Loyalty and Trust. Into the bargain, I believe that, if they think I'm not measuring up properly, I will Terminate the agreement and they should feel free to find someone else who they think will do a better job of looking after them.

Should you sign?

If you are asked to sign a Buyer Agency Agreement, I'll suggest that, at the very least, you should have become comfortable with the agent who proposes it, allowing him/her to show their professionalism.

Buyer Agency Contract is an exclusive contract! You can sign only one contract per georgraphic area at one time.

Cancellation

Recently I've been asked by several people about their chances of cancelling a Buyer Agency Agreement. I've had to say that they've committed themselves to a document that's, in effect, as legally binding as a Listing Agreement. Accordingly, to be terminated same rules apply, if the Buyer Agent does not cooperate or does not live up to expectations, the Buyer will have to take the matter with the Buyer Agent's Brokerage or wait things out through to the expiry date and be aware of the Holdover Period.

Please do not hesitate to contact me, if you need any further information or to book the Free Buyer Seminar.