Monday, August 21, 2017

What Am I Signing here?

July 20, 2010 by  
Filed under Buying Real Estate, Recent Posts

There is something about signing an agreement that people shy away from.

When you’re a first time home buyer it seems strange to sign a contract with your real estate agent! The truth is, a Buyer Representation Agreement protects you the buyer and should be signed at your earliest opportunity.

A  B.R.A. is a written representation agreement between a client and a real estate company.  It states very clearly that the company’s legal duty is to ensure the client’s interests are protected and promoted at every possible opportunity.

In other words, under an Agency Agreement, the company must ALWAYS put YOUR interests first– above everything else except the law.

FACT:  If you do not wish to be represented under a Buyer Agency relationship, the company you choose automatically must work for the Seller during the transaction.  It’s either one or the other.  Almost every home Seller on the market has already has an agent in place. In fact, this is one of the mandatory conditions of being listed on the MLS system.   So if the Buyer does not have an Agency Agreement in place, their Realtor must work for the Seller as a “sub-agent” by law.  In a situation like this, all information gained about your situation, including financial information and what you are willing to spend may be shared with the Seller to enhance his or her negotiating position!

On the other hand, if a company works as your exclusive Buyer’s Agent, it owes you full confidentiality (they will not tell the Seller anything) and its duty is to make sure you are fully protected.  You’ll be advised about the true market value of homes and about the best strategy to purchase your ideal home for the best price possible.

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