what are the ethics for a real estate agent having her clients sign an exclusive buyers agent contract ?
Is it ethical for a real estate agent to have us sign an exclusive buyer agent contract while we are the process of filling out papers in her office to put a bid on a house she had shown us? She did not explain it other than saying it is for houses I have shown you or will show you. Trusting her and in the excitement of filling out the other papers for the house we were planning to buy we signed the buyers agent contract without reading it. The deal on the house we were going to buy fell through. Looking through our papers we found we did not get a copy of the buyers agent contract. She gave us one at our request and that is when we discovered it was exclusive and did not expire until one year later. Call me stupid! I have! Was that process ethical and is there any way this contract can be broken?
Niksmom2007-07-18T09:29:22Z
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It's not unethical. The company I work for requires us to have one on file. It's not for any other reason than to protect our clients. If you sign a Buyer Agency Agreement, your agent has a responsibility to you. She works on your behalf in YOUR best interests. Your agent should have given you a copy upon signing it though. If not, as soon as she could get back to her office to make a copy for you. Most contracts are "fill in the blank" and you can make the contract for however long you feel comfortable with. Your agent's #1 priority should always be customer service. She was wrong for not being up front and it sounds as though she wasn't trained well or just simply didn't care. I'd call her broker and explain the situation. If that doesn't work then I would look into, if her firm is a member, filing a complaint against her with the local board of Realtors. To find out if they are, look up the National Association of Realtors on the web at http://www.nar.com. You can also find a complete list of the code of ethics there. Hope this helps. Let me know what happens. My email address is carrie@carriedunger.com.
There is nothing unethical with her request. In fact, that's what a 'good' agent is required to do. It protects both the agent and the client. You must look at the picture from the agent's POV.... let's say she doesn't require that you sign an agreement and then she spends 6 months searching for a house to your desire - you find a property and then say..."Thanks but I know John Doe is a realtor so I want him take over and coplete the sale." That's not fair to the first agent because she did all of the work and introduced you to the house...but along comes John Doe to capture the commission for absolutely no work done. With a representation agreement everything is clearly identified the agent represents you and is working for you exclusively.
Perhaps she should have explained that the contract was for an entire year -BUT just because she didn't that does not mean you can break the contract. As with all real estate transactions buyers/sellers are advised to contact an attorney to review all contracts/agreements prior to signing. You can not hold your agent accountable because you did not seek legal counsel or read the fine print prior to signing the agreement.
You can always request to be released from the agreement but the agent and/or her broker aren't obligated to honor your request. More than likely though...the broker might decide your huff and puff isn't worth the argument and will honor your request to dodge what you signed. If he does, please remember to read ALL contracts before hand in the future and ASK questions about what you are not certain about.
There is nothing unethical about it. In fact it shows that she is a good agent. She has presumably put a lot of time and work into finding you a house and so far has nothing to show for it. Unless it was her negligence that caused the deal to collapse she should not be penalized. She explained the essence of the contract, stating that it is for the houses that she has shown or will show you....meaning you can not turn around and use another agent to buy properties she has shown you. People dont realize how much time realtor put into their clients often without resulting in any sales. I was an agent for several years and had shown 100 of clients 1000 of properties to find that they went to an open house one day and liked the house and bought through that agent. I would not break the contract unless there is a real conflict between you two. But Im sure if you contact the broker and plead your case they might let you out of the contract.
This form is LAW in some states if not all. I'm only licensed in Minnesota, Wisconsin and Florida. But it's a contract to work with her. It states who pays her commission and it could be you or the seller. It clearly states the expectations, duties and responsibilities each party has to one another. It defines who pays commission on a home shown to you by her for a specified period of time after the contract is terminated or expires.
Your not stupid and I'm really glad you asked the question. Sometimes it's hard to explain. Most people do not want to sign anything these days. Have trust in her and sign the agreement. She deserves to be paid. Oh, if you want to cancel the contract you may do so verbally or in writing. I would suggest you put everything in writing. You would have no further obligation other than if you were to purchase a home that she has shown you. Understand?
If I can assist you further, just send me an email - glad to help! And thanks for being in the market and adding value to our economy! LOL
Your agent should have explained this to you before you singed. One purpose of this form is to protect the agent from showing you 50 houses and then you say thanks and purchace from someone else. In a case like that the agent could would get their commission and should....they spent a lot of time and energy showing you those homes. But these contracts can be broken by mutual consent. If you do not want to work with the agent say so.....