What is Exclusive Buyer's Agency? by Jon Boyd
The term exclusive buyer agency had been defined many years ago by both the dominant organization of real estate agents and The National Association of Exclusive Buyer Agents. The meaning was the same: "The practice of representing only buyers and never sellers in a transaction. The company never lists a seller's property and thus never has a seller as a client."
This is also the definition used by the news media in articles written for the benefit of home purchasers who are looking for guidance in preparation for the purchase of real estate.
A few examples:
Financial writer Ilyce Glink advises: "If you're trying to eliminate potential conflicts in your deal, you may want to try (exclusive buyer agency). Exclusive buyer's agents never represent sellers. They only represent buyers, and they typically will take buyers wherever they want to go in a metro area."
The late real estate attorney and author Robert Bruss differentiated between the different types of buyer agency services in his article "Do Home Buyers Need Their Own Agent?" by saying: "Any real estate agent can be a buyer's agent to help locate your home purchase. In addition, there are a few exclusive buyers' agents who represent only home buyers, never accepting listings from home sellers."
However, there is an underlying issue bubbling up for real estate buyers:
Buyer agency and its variations have become very widespread given that it was introduced to the marketplace over twenty years ago.
But real estate buyers should also be conscious of the important differences between the different ways that the expression exclusive buyer's agency is used by real estate licensees in Michigan before they select an agent to represent them on their next home transaction.
Exclusive buyer agency brokerages have more often than not signed contracts with home buyers to represent them and to be guaranteed of compensation for the services rendered. The company is usually compensated out of the seller's proceeds so it doesn't cost the consumer any more than if they had used a regular real estate agent. The obligation for the buyer to make sure the brokerage gets paid has been termed an "exclusive right to buy" clause. The mirror image on the listing side is often called an "exclusive right to sell".
Once traditional real estate companies started promoting buyer agency and the resulting dual agency, they also incorporated these exclusive right to buy paragraphs and signed contracts with home buyers for representation.
But, since the expression "exclusive buyer agency" is not defined by law in numerous states, some real estate groups determined to take advantage of consumers and call these exclusive right to buy agreements by the label "exclusive buyer agency".
In Michigan some agents from conventional real estate companies claim they are an exclusive buyer agent. This is may be legal, but it is certainly not ethical.
But since a lot of books and articles written by consumer advocates recommend exclusive buyer agency, these traditional real estate licensees feel they can win some of that business by misusing the term.
Remember, the business relationship you have with a real estate professional is determined by the firm they work for. And, exclusive buyer agency means the brokerage works only for and that is part or why it can be such a benefit for you during your real estate purchase process.
Here is an easy check: If a real estate firm has listings, it is not an exclusive buyer agency.
Ann Arbor Real Estate Exclusive Buyer Agency
Article Source: ArticleSnatch Free Article Directory
The term exclusive buyer agency had been defined many years ago by both the dominant organization of real estate agents and The National Association of Exclusive Buyer Agents. The meaning was the same: "The practice of representing only buyers and never sellers in a transaction. The company never lists a seller's property and thus never has a seller as a client."
This is also the definition used by the news media in articles written for the benefit of home purchasers who are looking for guidance in preparation for the purchase of real estate.
A few examples:
Financial writer Ilyce Glink advises: "If you're trying to eliminate potential conflicts in your deal, you may want to try (exclusive buyer agency). Exclusive buyer's agents never represent sellers. They only represent buyers, and they typically will take buyers wherever they want to go in a metro area."
The late real estate attorney and author Robert Bruss differentiated between the different types of buyer agency services in his article "Do Home Buyers Need Their Own Agent?" by saying: "Any real estate agent can be a buyer's agent to help locate your home purchase. In addition, there are a few exclusive buyers' agents who represent only home buyers, never accepting listings from home sellers."
However, there is an underlying issue bubbling up for real estate buyers:
Buyer agency and its variations have become very widespread given that it was introduced to the marketplace over twenty years ago.
But real estate buyers should also be conscious of the important differences between the different ways that the expression exclusive buyer's agency is used by real estate licensees in Michigan before they select an agent to represent them on their next home transaction.
Exclusive buyer agency brokerages have more often than not signed contracts with home buyers to represent them and to be guaranteed of compensation for the services rendered. The company is usually compensated out of the seller's proceeds so it doesn't cost the consumer any more than if they had used a regular real estate agent. The obligation for the buyer to make sure the brokerage gets paid has been termed an "exclusive right to buy" clause. The mirror image on the listing side is often called an "exclusive right to sell".
Once traditional real estate companies started promoting buyer agency and the resulting dual agency, they also incorporated these exclusive right to buy paragraphs and signed contracts with home buyers for representation.
But, since the expression "exclusive buyer agency" is not defined by law in numerous states, some real estate groups determined to take advantage of consumers and call these exclusive right to buy agreements by the label "exclusive buyer agency".
In Michigan some agents from conventional real estate companies claim they are an exclusive buyer agent. This is may be legal, but it is certainly not ethical.
But since a lot of books and articles written by consumer advocates recommend exclusive buyer agency, these traditional real estate licensees feel they can win some of that business by misusing the term.
Remember, the business relationship you have with a real estate professional is determined by the firm they work for. And, exclusive buyer agency means the brokerage works only for and that is part or why it can be such a benefit for you during your real estate purchase process.
Here is an easy check: If a real estate firm has listings, it is not an exclusive buyer agency.
Ann Arbor Real Estate Exclusive Buyer Agency
Article Source: ArticleSnatch Free Article Directory