- Find a Real Estate Professional
- Realtors®
- Mortgage Lenders
- Home Improvement Pros
- Other Real Estate Services
- Review an Agent, Lender or Pro
- Marketing on Zillow
- Real Estate Agent Advertising
- Join the Professional Directory
- Popular
- Real Estate Market Reports
- More
Replies (18)
- Stephen Murphy, "Outof thebox"
- Contributions:69
you are wrong
- Robert Walker, "So Cal Agent"
- Contributions:1425
Number one is built into the contract already.
Number two, to be able to unilaterlly terminate a contract would basically render the contract worthless. But... If a buyer is able to pull it off, more power to them, because if the buyer is able to pull this off the buyer wouldn't want that agent representing them anyhow because the agent wouldn't know their paperwork well enough to protect buyer and could actually damage them a lot more worse than the buyer may be able to save by cutting corners.
By the way, the C.A.R. Form you are speaking of is a BRE (Buyer Representation Agreement - Exclusive), not a EBA.
- sunnyview
- Contributions:25127
I agree that the an EBA should have either a clause allowing termination for cause or at least a section where properties that are shown are listed by address so that the buyer is not responsible to pay anything if that agent does not facilitate the showing or offer on a specific property.
EBA's do not benefit buyers ingeneral and many poor agents seem to use them as an excuse for bad professional behavior since they feel contractually protected. It is a bad idea to write any professional a blank check in my opinion.
EBA's do not benefit buyers ingeneral and many poor agents seem to use them as an excuse for bad professional behavior since they feel contractually protected. It is a bad idea to write any professional a blank check in my opinion.
- John Stewart, "nwhome.us"
- Contributions:2161
My own perspective on contracts is that, like laws, they represent the lowest common denominator in social interaction: if there is no possibility of communication, this is how we will behave.
The challenge is that even the most clearly written contract is subject to interpretation in a number of different ways, so there is no "right way" when it comes to contracts. Truthful communication is alwayse more successful.
A rather novel question to ask is "can you be honest and truthful with me"?
I certainly agree that the parties should discuss the issue (#1 is already there) and if there is discomfort about the conversation, maybe this is not the right social match.
The challenge is that even the most clearly written contract is subject to interpretation in a number of different ways, so there is no "right way" when it comes to contracts. Truthful communication is alwayse more successful.
A rather novel question to ask is "can you be honest and truthful with me"?
I certainly agree that the parties should discuss the issue (#1 is already there) and if there is discomfort about the conversation, maybe this is not the right social match.
- Bradley Slavens, "Slavens Realty"
- Contributions:14
I usually type one in. I use the word "termination" so that basically the buyer can end the contract when ever they want for any reason. However, if they close on anything that happened while the contract was in force, then I would be due the commission.
- Dan, "the_country_hick"
- Contributions:4694
I have seen realtors ask "when should I fire a client?". If I signed an EBA with them so I can not fire them how can they fire me? Is there a clause in there saying they can fire me if they choose?
If there is a clause that says a realtor can fire a buyer it is only fair to have it the other way around.
For those who think the client should never be able to fire a realtor consider this:
I want to fire you. You will not allow me. Being ticked off I insist you show me every single house for sale. You will drive me 1/2 hour (or more) to look at every house listed for sale. ( I like sight-seeing) When We have no more new houses I will go back and look at them all again. I will call you day and night for no reason except to waste your time. I will have you do tons of research on properties I do not want. I will NEVER buy.
Is that the reality that agents want when they insist on having an EBA signed?
Do agents realize that pushing people to stay with them will only create hard feelings and waste the agents time and money? When a separation is requested it is best to allow it happen.
A binding contract with no way out works both ways.
If there is a clause that says a realtor can fire a buyer it is only fair to have it the other way around.
For those who think the client should never be able to fire a realtor consider this:
I want to fire you. You will not allow me. Being ticked off I insist you show me every single house for sale. You will drive me 1/2 hour (or more) to look at every house listed for sale. ( I like sight-seeing) When We have no more new houses I will go back and look at them all again. I will call you day and night for no reason except to waste your time. I will have you do tons of research on properties I do not want. I will NEVER buy.
Is that the reality that agents want when they insist on having an EBA signed?
Do agents realize that pushing people to stay with them will only create hard feelings and waste the agents time and money? When a separation is requested it is best to allow it happen.
A binding contract with no way out works both ways.
- Joan Braunschweiger, "Morris County NJ"
- Contributions:1543
Dan, I'm pretty sure there aren't any agents who believe a client should never be able to fire a realtor, under any circumstance.
Most of us truly don't want to work with people who don't want to work with us.
We don't use any kind of buyer agency contracts (yet) in my office but I am pretty sure they are purely for the benefit of the agent. Its not that I don't understand using them since agents are burned by buyers all the time, but I have no doubt that its done to protect the agent, not the buyer.
Stephen Murphy: who or what is wrong? Don't understand your response.
Most of us truly don't want to work with people who don't want to work with us.
We don't use any kind of buyer agency contracts (yet) in my office but I am pretty sure they are purely for the benefit of the agent. Its not that I don't understand using them since agents are burned by buyers all the time, but I have no doubt that its done to protect the agent, not the buyer.
Stephen Murphy: who or what is wrong? Don't understand your response.
- Angie Boggeman, "angie boggeman"
- Contributions:469
I feel very strongly that I do not want to work with a client who is not happy with me or with my services. and would allow them to terminate the contract if they so chose. However, maybe if a buyer is worried about being able to get out of a buyers agreement, they should screen their potential agents more closely.
- sunnyview
- Contributions:25127
Unfortunately, no buyer can screen an agent well enough to ensure that they will get the job that was promised. Even an agent that starts out great can find themselves in a divorce, a car accident or just swamped with their listings/duties so that they are not able to deliver on their promises for that specific buyer.
Buyers should be loyal to their hard working agent and respect their professional time and effort. They should also be able to switch out an agent that is not working for them for one that will as long as they are not in contract.
Buyers should be loyal to their hard working agent and respect their professional time and effort. They should also be able to switch out an agent that is not working for them for one that will as long as they are not in contract.
- SoCal_Engr
- Contributions:5663
@ Stephen...
"you are wrong". Really? Just that? From the consumer perspective?
@ Robert...
I have seen many examples of EBAs (or, if you prefer) BREs. Most have a time constraint - although I've seen them trying to lock the buyer in for 6-12 months. However, only one had a specific area to list neighborhoods or zipcodes that the agreement was constrained to.
Most of the EBA examples I saw had clauses to protect the REA, including the ability of the REA to unilaterally terminate the agreement. The example I remember had to do with the case where the REA was the listing REA and the client refused to authorize a dual-agency.
- SoCal_Engr
- Contributions:5663
@ Robert...
Not sure how a REA inserting this clause into the EBA/BRE on behalf of their client would make them any less competent to represent the buyer in negotiations or paperwork. I am not advocating that the consumer try to sneak it in. I am advocating that the consumer should make these a condition of signing the EBA/BRE to begin with.
If anything, a REA who demonstrates the confidence and transparency to make sure these clauses are included for the benefit of the consumer would gain huge confidence points in my view.
Not sure how a REA inserting this clause into the EBA/BRE on behalf of their client would make them any less competent to represent the buyer in negotiations or paperwork. I am not advocating that the consumer try to sneak it in. I am advocating that the consumer should make these a condition of signing the EBA/BRE to begin with.
If anything, a REA who demonstrates the confidence and transparency to make sure these clauses are included for the benefit of the consumer would gain huge confidence points in my view.
- SoCal_Engr
- Contributions:5663
Just for Stephen Murphy...
<SARCASM>
Also, try and get a clause in that prohibits the REA from showing any houses you have looked at to other clients.
<\SARCASM>
<SARCASM>
Also, try and get a clause in that prohibits the REA from showing any houses you have looked at to other clients.
<\SARCASM>
- Robert Walker, "So Cal Agent"
- Contributions:1425
SoCal, a BRE can be any length from hours to years... A BRE is good to have on behalf of the agent for protection against other agents that don't observe and/or practice integrity or ethics in their business practices, not so much the buyer.
I had a buyer that I sold her house and then she innocently walked into a builder's office and the got her to sign on a $975K house.
I love her like a sister and she felt bad, but I was able to cure the problem simply by calling the builder's salesperson that knew she had an agent.
I told the builder I needed to know when her escrow was scheduled to close because I had a BRE on her and I had to let her know that as soon as she closes she was going to have to pay my full commission. (Builder's love to say: sorry, you had to be here on their first visit)
The builder knew exactly what I was talking about and I had my check.
I would have never hit her up for the commission, but the builder didn't know that; all they knew is that I was going to submit her a bill prior to close of escrow and everything was going to fall apart.
I have had agents call my clients on the phone with me sitting right next to my client and ask them when my listing was going to expire because they wanted to submit an offer directly to them, listing agent calling trying to negotiate with my client and offering them a kick-back with one actually calling me thinking I was the client (I had my wife's number in the MLS as the translator) Surprise!!
The BRE is like the lock on your front door; it is only there to keep the honest people honest.
- SoCal_Engr
- Contributions:5663
Let me get this straight...
The BRE is there to protect the REA for other, unscrupulous REAs. That is what you said, right?
If so, then why not say that up front? You're the first REA to say this on Zillow's forums, although another REA did say that the purpose of the BRE was to protect his commission from unscrupulous buyers who use the REA to find the house and then go behind their back to buy. Every other REA has pushed the "it's to protect the buyer from being un-represented" angle.
Note: This sounded honest, but did not make sense as it meant the listing REA also had to be "in" on the scam. Then again, if REAs need BREs to protect themselves from other REAs, maybe his concern was legit?
The BRE is there to protect the REA for other, unscrupulous REAs. That is what you said, right?
If so, then why not say that up front? You're the first REA to say this on Zillow's forums, although another REA did say that the purpose of the BRE was to protect his commission from unscrupulous buyers who use the REA to find the house and then go behind their back to buy. Every other REA has pushed the "it's to protect the buyer from being un-represented" angle.
Note: This sounded honest, but did not make sense as it meant the listing REA also had to be "in" on the scam. Then again, if REAs need BREs to protect themselves from other REAs, maybe his concern was legit?
- Robert Walker, "So Cal Agent"
- Contributions:1425
You got it right, which also protects the buyer from their own agent collecting on an earned commission in which the listing agent or selling agent that they used would be paid by the seller... Another words, the seller would pay the commission on behalf of the buyer to the selling agent and then the buyer would have to pay the original agent's commission because they were contracted with the original agent in which they agreed to pay unless another party, the seller, satisfies the earned commission.
A BRE is to keep everyone inline. Without the BRE it just gets uglier and uglier... With a BRE it is pretty cut and dry, but still could break down to who ever obtains the offer that gets accepted is the one who gets paid, but like everything, one judge may see it different from the other judge... It is better to just have integrity and do what is right. If someone is out there busting their hump for you, who can justify allowing someone else to just step in there and write up an offer on a house when they were not the ones exerting the efforts it takes to make a deal come together.
It's a cut throat industry. It is best to get your client in and out unscathed, and a BRE is a good tool to have to make it through.
If an agent starts with procuring cause, like a builder or an agent at an open house, throw your BRE down and ask to see theirs... I have proven it works really well.
Here is a link to a copy of the BRE: Buyer's Representation Agreement - Exclusive
- Robert Walker, "So Cal Agent"
- Contributions:1425
Notice the verbage... This is great information for a buyer to know also as the BRE explains what to expect in the market place and what is expected of them as well and what their agent is suppose to do.
If your agent isn't performing to the contract, call them on it. Its right there in black and white...
If your agent isn't performing to the contract, call them on it. Its right there in black and white...
- Gordon Haraway, "1stTimebuySpecialist"
- Contributions:250
These agreement serve very important purpose in protecting the buyer with teh knowledge that the agent is working for them and not the seller. That said however I do agree there should be an out for a buyer who feels they are not being served to the fullest by their agent. A good agent should have no problem putting a clase into the agreement.
- sunnyview
- Contributions:25127
I agree with Gordon. Your buyers representation agreement has an out clause for the agent, but does not have one for the buyer even if the agent does not perform as promised. In that case, the buyer must go through a mandated arbitration to get their release. Seems a bit unfair to me.
Exclusive Buyer Agreement should contain a clause allowing unilateral termination by the client
1) A clause identifying both the area(s) and time span for which the EBA is in effect.
2) A clause enabling the consumer to unilaterally terminate the agreement, with appropriate notice.
It is expected that termination of the agreement by the consumer will not invalidate reasonable protections of the REA's interests (e.g. procuring cause, etc.), but not to have this built into the contract is asking for trouble down the road.
Stating a discriminatory preference in an advertisement for housing is illegal. If you think this content is discriminatory or otherwise inappropriate and feel it should be removed from Zillow, please let us know by completing the information above.
We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.