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Exclusive Buyer Agency Agreement

Posted by schay200 (My Page) on
Thu, May 9, 13 at 8:38

What are people's current thoughts about exclusive BAA's. We have sold our house and are relocating ourselves to NC. Our listing agent here has referred us to agents (we are deciding between 2 different cities) both within the same big name brokage as she is. In doing as much before hand as possible before the move so we can hit the ground running we have been sent sample copies of the documents that we would sign as buyers. Among them is a BAA. We have never seen one before and I'm a bit uncomfortable with it. I certainly agree an agent should be paid for their efforts that lead to a completed sale but that was never an issue that required contracts on the buyer side before why does it now?


Follow-Up Postings:

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RE: Exclusive Buyer Agency Agreement

I thought it was fair to sign it as a safety net for the agent. Like you said it would be unfair an unethical for the agent to do all of the work and buyers drop the agent when they actually buy.

I'm in the Midwest, and we have signed two of these with two different agencies. I just assumed it was standard.


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RE: Exclusive Buyer Agency Agreement

Personally, I would never sign one. I also understand an agent wants to be paid, but I don't want to commit myself to someone who may not work out for me.
I've never been asked to sign one.
I also wouldn't think much of your old agent's recommendation, she isn't personally recommending them, just picking the same agency.
Can you shop on your own for a good agent?


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RE: Exclusive Buyer Agency Agreement

I would not sign one. They seemed to be popular in the late '90s in the Northeast. A few times I was given a copy to review, but I never agreed to sign one. They can NOT force you to sign!

I would rent for a while and get to know the area first. Is this a work move? If so, maybe you can get realtor recommendations from coworkers.


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RE: Exclusive Buyer Agency Agreement

No this not a work move as such. My husband's company is one of these "virtual offices" where everyone works at home. We sold our home in the Northeast and simply want a warmer climate and lower cost of living. Our youngest child graduates college this weekend so we're at a good time to move locales. We feel given current interest rates we would be better off taking some of our equity and buying a cute little home for cash (our money won't make much in the bank) our choice on where to look was based on that. So agents will still work as selling agents without having to sign a buyer's agent agreement?


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RE: Exclusive Buyer Agency Agreement

NO. If you do not sign a BAA in NC, then the agent defaults to being a sub agent FOR THE SELLER! And most listing firms do not offer sub agents a commission.
What part of the BAA makes you uncomfortable?
I work the Charlotte and Lake Norman areas and require all of my clients to sign a BAA.


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RE: Exclusive Buyer Agency Agreement

My concerns:
There is no memtion of my being able to get out of this contract at all. Although there is a statement that the broker is able to terminate at its option.
That there are no geographic boundries on the agreement. any property bought anywhere seems to obligate us to paying them a commission for the term of the agreement. Why should I pay them a commission for the purchase a condo in Fl?
"The Broker shall attempt to seek payment of Broker's compensation from a cooperating listing broker..." Why is it even a possibility that they wouldn't get said compensation?
The overall "vibe" I get from this document is it is very one sided and I need a lawyer to go thru and modify it to be fair to both parties.


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RE: Exclusive Buyer Agency Agreement

Buyer's rep agreements are an attempt to keep things *from* being one-sided.

If you want a bail-out clause, say something.


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RE: Exclusive Buyer Agency Agreement

Your listing agent will usually receive a 25-30% referral fee from the agent they refer you to after you purchase....that part is usually not talked about....now do you understand why they want you to sign a Buyers Agency Agreement with a Realtor that they may know nothing about?


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RE: Exclusive Buyer Agency Agreement

sylviatexas yes I intend to do so. However it is a bit off putting to be finding things that seem, to me, so in favor of the buyers broker in our contract when I thought the idea is I'm suppose to trust them to have my best nterests at heart. I had no problem with the old model of both agents representing the seller and I was aware of that. It was up to the selling agent to sell me and justify thru comps the list price. Because at some level I didn't think they were really totally representing the seller either they were trying to make a deal happen which is their job after all and the way they make a living


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RE: Exclusive Buyer Agency Agreement

Loto Sorry I didn't see your posting before I responded. I did not know what the referral fee would be but I suspected there would be one and that was part of why I asked her. Our agent went so over and above what ever had been done for me by a realtor in the past. In previous transactions I never felt the listing / selling agent(s) were working for my best interests when I was selling, they were trying to get the deal done. And at some level it didn't matter, we were getting relocated by major corporations that either gauranteed we would clear a certain amount (ie they would buy our house at an appraised value and/or help to buy at the other end, we were always moving to higher cost of living and real estate states). But you are right in that she didn't tell me that she would make a referral fee. But she did start making off-hand comments about how she tries to avoid having a buyer client sign a buyers agent agreement and would post date one if her buyers found a house they wanted to put an offer on. But we don't know anyone where we are moving and we really want to minimize time in an extended-stay situation. At least now I can email and talk to the agents and get a feel for them at a distance.


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RE: Exclusive Buyer Agency Agreement

In NC the BAA states in paragraph 1 what type of property that the buyer is purchasing and the general locations.
Paragraph 3 states the duration of the agreement... from this date to some future date OR when ever real property is purchased, whichever is first.
Another paragraph states that if the compensation being offered by the listing side is not X amount, then the buyer has to make up the difference. (I always strike thru this paragraph... I will take my 2.5% paycheck the same as the 3.0% paycheck)
If you really do not want to sign a BAA in this state, then just use the listing agent for the deal. But they will be looking out for the interests of the seller only.
You seem confused and emotional right now... in one paragraph you say you liked the old ways where there was no representation and the agents just worked to get the deal together, and in the next breath you chastise your previous agents for just seeming to not represent your interests but just seemed like they wanted to get the deal together!
If you were my client, I would allow you to fire me on the spot, but any home that I had previously shown you would result in a commission to me. Win/win. You are not trapped into a BAA and I would not be wasting my time with the homes I showed you, were you to purchase any homes that I was the procurring cause of the sale.


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RE: Exclusive Buyer Agency Agreement

ncrealestateguy I most likely am confused which is why I come to forums to get others perspective on things ...to see things in a different light often clears my confusion. Now something that does confuse me is your statement "If you do not sign a BAA in NC, then the agent defaults to being a sub agent FOR THE SELLER! And most listing firms do not offer sub agents a commission." Is this not why the MLS exists? For listing brokers/agents to offer to share their commission with a selling broker/agent if they bring a buyer who buys their listed property? This is not how the MLS works in NC? Given the listing I'm getting have MLS ID's on them I assume they're MLS offerings not exclusive listings of some broker.
The agreement I was sent in First unnumbered paragraph verbage to the effect that Broker and all their DBA's are my exclusive agent in the procurement of real property (goes to list including but not limited to types of transactions purchase, option, lease etc) to assist Buyer in negotiating the procurement. That Broker is not obligated to assist Buyer in locating or pursuing other properties after Buyer enters into a contract (but does not say buyer is now free from the exclusive agreement) there is no geographic limit what so ever not even to the state of NC. My number paragraph 1 is term of agreement which is between fill in dates unless terminated sooner by Broker at its option, no mention of it being terminated when real property purchased


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RE: Exclusive Buyer Agency Agreement

That there are no geographic boundries on the agreement. any property bought anywhere seems to obligate us to paying them a commission for the term of the agreement.

First ... add a geographic limit to the contract. "Within the __ metro area, ___ countiy, ___ zip code" Whatever is reasonable for that area.

If they want an exclusive, make them work for it. Add another clause to make it only for homes which were brought to your attention AND physically shown to you by the buyer's agent, or for homes which you found yourself AND for which they acted as your agent during negotiations all the way through closing.

So that cute FSBO you blundered into and negotiated yourself doesn't make money for them as they rest on their laurels.


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RE: Exclusive Buyer Agency Agreement

Schay,
If the form you are seeing is different from what I am telling you, then it seems that this firm is not using the NC RE Commission endorsed form. Ask them about that.
And yes, the NC MLS works the same as others... listing agents agree to pay a commission to BUYER AGENTS. And rarely to sub agents. Every agent is a sub agent until they enter into a BAA agreement with the client.
LOTO... receiving a 25% referral has nothing to do with the signing of a BAA.
Lazy... one reason we require buyers to fill out a BAA is so that we do not waste time and expenses on a buyer only to have them cut you out of the deal because they chose to buy a FSBO. I have yet to have even a single FSBO not be willing to pay me a 3.0% commission if I bought them a buyer. Buyers are not hiring an agent to locate properties as much as they are using them to negotiate a deal and advise the buyer in regards to contractual dealings and making sure the process marches forward.


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RE: Exclusive Buyer Agency Agreement

self delete

This post was edited by LOTO on Fri, May 10, 13 at 17:39


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RE: Exclusive Buyer Agency Agreement

'If they want an exclusive, make them work for it. Add another clause to make it only for homes which were brought to your attention AND physically shown to you by the buyer's agent, or for homes which you found yourself AND for which they acted as your agent during negotiations all the way through closing.

So that cute FSBO you blundered into and negotiated yourself doesn't make money for them as they rest on their laurels."

See, this is the kind of thing the buyer rep agreement is to "level out".

Agent works like a maniac, shows client houses, helps get financing approval, educates buyer about process, sends emails updating buyer on newly available homes, including limited service listings on MLS & builder homes, &.,...
buyer skips away & buys something else, using agent's knowledge & skill & not paying for it.

Whenever someone says, "make 'em *work* for it", whatever "it" is, I always wonder if there's any amount of work a person can do, any number of hoops through which a person can jump, that will satisfy that client/customer.

As for "that cute FSBO", include your agent's fee in the offer.


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RE: Exclusive Buyer Agency Agreement

I have never not had a FSBO pay me the going rate to bring them a good buyer.


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RE: Exclusive Buyer Agency Agreement

Sylvia ... Exactly.

And my version of a Buyer's Agreement gives the agent a reward for doing work for me, not just getting a signature on some paper and collecting for work done in another city by another agent.


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RE: Exclusive Buyer Agency Agreement

We had an agent that wanted us to sign exclusively, and that was such a red flag, we ended our relationship with her.

We decided to do the work a realtor should do on our own, and drove around, found neighborhoods we liked, and only called listing agents.

One of those agents fit our needs, and he gave us access to the MLS so we could only see homes that interested us. We made 4 offers through him, but the market here is hot, and we lost to higher offers. Finally one stuck! We never signed any exclusive agreement with him, and we were loyal.

Not everyone is loyal, though, so that agreement gives a realtor a comfort level. As a buyer, having to sign such an agreement leaves me cold!


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RE: Exclusive Buyer Agency Agreement

I guess I don't understand why buyers are afraid to sign a contract. Do they not understand how many buyers' agents have been burned?

I do understand if you have never met the agent before. I would not ask until I had met the buyer and perhaps a 1/2 day of showings. After that, I expect a commitment from the buyer and they should understand that. There are too many stories of buyers "shopping" agents and they end up spending their own gas and time for nothing. (I just sent a buyer away who was skipping from agent to agent, saying they were all awful. I suppose now I'm just another awful agent in her book - and I'm using nice language here.)

We've all heard the stories about agents who researched for buyers, showed houses for a few days, settled on one, drafted up a CMA, and then the buyer has their (insert friend/relative here) write up the offer contract and get the commission. But they didn't want to bother their (friend/relative) with all the prep work involved.

The contract is just to protect the agents against unscrupulous or ignorant buyers.

And let me tell you a thing about "awful" agents - buyers need to realize that their agents can only work for you if you communicate with them. I did work with that particular buyer (friend's co-worker) that I previously mentioned just for a couple of MLS searches. I had a couple of conversations about what she was looking for, and chose a handful of homes that met her specific criteria and sent them to her. When I asked her about the best of the bunch to see if she wants to go see it, she says there's no room in the backyard for a pool. Huh. She never mentioned that, so now I'm looking for pools. Another couple pop up, but those need some work. Huh. Okay, now I'm looking for move-in ready (this is after she already said she'd do painting and minor work). Then she calls up and says she'd looked at a house but the agent (???) isn't answering her questions (turns out after a phone call that the agent hadn't been back to the office yet to get the answers for her - a matter of two hours and she's a "bad" agent???) I look at MLS and the house she likes now is miles out of the search area she told me to look in. Well, I can't help her if she won't communicate! (this is when I decided that I could disappear without affecting the friend relationship...)


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RE: Exclusive Buyer Agency Agreement

If I run into a reluctant buyer, I just straight up ask them how do they expect me to be 100% loyal to them when they will not do the same for me?


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RE: Exclusive Buyer Agency Agreement

simple, straightforward, & logical, ncreguy!


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