Buyer agent agreements. . . be cautious

by Alec Applebaum

There is a rule in place that states a realtor must have a buyers agreement signed before they can show you a single home. This is bad for many reasons, but there's some simple language you can add to protect yourself. And if the realtor says no, find another realtor. 

Let's start with what is the buyers agreement? It's essentially a contract between the buyer and agent that spells out the commission and fees. This part is actually a good thing. You see the fee structure laid out so there's no confusion later.  

Here's the problem. You've most likely never met this person before, and now you're going to sign an agreement that could lock you into working with this person for 6 months to a year depending and maybe more. At this point you can't be certain they'll return your calls in a timely fashion. You don't know if you have the trust in them to work for you and you don't even know if you'll like working with them. And once you sign an agreement, you can't simply walk away and find a new realtor without the risk of being sued. 

So what's the solution? You need a clause that gives you an out. All of my agreements say, "Either party can terminate this agreement with written notice." It's that simple. I don't believe it's fair or ethical to the buyer to be locked in to having to work with me before we've even met.  It also gives me an out should I need it.   

So what do you do if the realtor says no? Find another realtor.  

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