Rethinking Buyer Agency…
Ga. law PROHIBITS brokers (and agent) from representing a buyer as a client without first entering in to a written agreement. That has always been the case. But honestly, until recently, I have perceived the buyer agency agreement as a binder between myself and the buyers, and I believe buyers percieve it the same. My belief has been that if I do a great job the buyer will be loyal to me and we will have a successful relationship. Once we got to the point of actually making a written offer on a home I would do the buyer brokerage agreement at that time. Certainly the law is clear on that point. In order for me to present am offer on the buyers behalf then I need to absolutely represent them and their interest.
From the standpoint of protecting my business (commission) I have no desire to change that. It has served me quite well for 20+ years.
If I do my job and take care of the buyers it all works but if for whatever reasons they move on to another agent then I make $0. I like that and that concept will remain!
Before I go further as to why let me state two things.
1. In the buyers agreement the commission due from the buyer to Atlas Realty will be $0. As the agreement spells out scenarios in which the buyer could owe me money the amount they owe will be $0.
2. Term of the agreement. There will be dates and times in the agreement but I want my clients to be bound by loyalty and quality service and not feel like they are bound by contract. There will be a stipulation that the contract can be terminated by either party simply by giving notice and the other party acknowledging that notice. In other words you can fire me anytime. Likewise I could fire you :-)
There are a lot of market forces in play and I probably will have to change this policy in the future but for now, it stays!
But times have changed and it is a wacky world!
Here are just some of my reasons for wanting the Buyers Agency agreement in advance.
*Binds me to represent buyer and buyers best interest as well as confidentiality.
*Buyers warrants that they are not currently under agreement with another agent.
*Spells out both my authority, responsibility, and liability to the buyer.
*There are items informing the buyer of the legalities and notice of mortgage fraud, cyberfraud, and identity theft.
*Hazardous conditions. Makes buyer aware there can be hazardous conditions at homes. There was a case here in Ga last year where a buyer was going back for a second look and brought grandma along for her valued opinion. Grandma fell and was injured and eventually died from her injuries. It is also stated that I am held harmless in those claims. You know darn well that the TV lawyers will name everybody they can in the lawsuit.
I will also be attaching the form “Protect Yourself When Buying Real Property”.
Here are some highpoints...
*Keep copies of your contracts.
*Get professional inspections.
*Thoroughly investigate the property.
*Inspect the neighborhood
*Survey is recommended
*Buy Owners title insurance.
*Consider a home warranty.
*ASSUME THE PROPERTY YOU ARE VIEWING HAS AUDIO/VIDEO SURVEILLANCE DEVICES IN OPERATION. This is actually one of the primary reasons I am making these changes to my policies. Do not discuss your personal info, opinions, or any potential offer scenarios while you are at the property. Ring, Alexa, and others are all watching and listening.
*Smart home technologies. Make sure you are aware of any subscription costs or others costs to use or transfer those technologies.
So in all of the above there are a few things that, yes, do protect me. But predominantly this is all information that BUYERS need to be aware of. In order for the buyers to be best informed they need to this information to protect themselves and make the best decisions possible!
