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How does an exclusive buyer agency agreement protect the Buyer's interests?

This is a sample exclusive buyer agency agreement posted here. While it may not be the exact form you use/recommend, are the contents effectively the same? If so, I have these concerns...

2.1 Buyer hereby employs Agent as Buyer's sole and exclusive agent to represent Buyer to find a property meeting Buyer's Specifications.
Nice, Agent's interest is protected against immediate competition. And this protects the Buyer how?

2.1 Buyer shall promptly disclose and refer to Agent all written or oral inquiries or contacts it receives from any source regarding a possible purchase.
Even better. If Buyer finds something on their own, they are contractually bound to bring this back to the Agent?

2.2(d) Buyer shall identify to Agent as "confidential" any communications or information provided to Agent that Buyer considers confidential and desires not to be disclosed by Agent.
So, the only information protected is that which is specifically identified by the Buyer? All other info is fair game to be passed the Seller's Agent? Nice protection of the Buyer's interests.

3.1 Said Agreed Commission is payable without regard to whether the Transaction is consummated as a result of the efforts of the Agent, owner, or any other person or entity.
Sweet! Agent gets paid no matter who effects the actual sale? It's a good thing the Buyer is so well protected.

continued...

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May 10 2010 - US
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Answers (33)

From your question, I understand that you do not like exclusive buyer agency agreements.  My answer is that you should find a Buyer's Agent who does not require you to sign an agreement.

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May 10 2010
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4.3 If, within one hundred eighty (180) days after the expiration of the Term, Buyer enters into a contract for a property specified on the Agency Transaction Listing, then Agent shall, upon consummation of such transaction, be entitled to a commission for such transaction in accordance with this Agreement.
4.4 If, within one hundred eighty (180) days after the expiration of the Term, Buyer enters into another agreement, whether or not exclusive, with a broker other than Agent concerning property specified on the Agency Transaction Listing, then Buyer shall provide to Buyer's new broker the addresses of the Properties specified on the Agency Transaction Listing, and specify, in writing, that the new broker shall not be entitled to receive any compensation payable to Agent hereunder for the consummation of any purchase of property specified in the Agency Transaction Listing.
So, the Agent's interests are protected for 6 months beyond the termination of the contract? Doesn't say anything about Agent being non-productive or ineffective - Agent's interest seems to still be protected

5. ACKNOWLEDGEMENTS.
Just "Wow!" Agent is protected from any and all adverse action for damages incurred by the Buyer, unless Buyer is able to demonstrate cause to the level of "Agent's gross negligence or willful misconduct, or Agent's failure to disclose or perform its obligations under applicable law". I'm glad the Buyer is being so well protected against general incompetence on the Agent's part.

Granted, I cherry picked some of the more aggregious of the conditions - but it wasn't hard. From my read, the majority of the protections are afforded the Agent, not the Buyer. So, why is this so valuable to the Buyer. It doesn't even guarantee protection of confidential information unless specifically identified by the Buyer. Say what?

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May 10 2010
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continued...

3.1 OPTIONAL: Agent shall endeavor to have the owner of the property purchased ("Owner") pay the commission owed to Agent. Agent may elect, at Agent's sole discretion, to accept Owner's standard commission schedule in lieu of the Agreed Commission.
3.2 In the event Owner or Owner's agent insists on a commission amount or commission terms less than the Agreed Commission, Agent shall have the right, in its sole discretion, to refuse to accept the reduced amount.
 In such case, Buyer hereby agrees to:
3.3 (a) Refuse further consideration of the subject Property for a period of one (1) year after expiration of the Term of this Agreement; or
3.4 (b) Compensate Agent directly for the difference in the commission amount offered by Owner and the Agreed Commission.]
Hmm...Agent's sole discretion? And, if the Agent so decides, Buyer is on the hook to pony up the delta or contractually prohibited from pursuing the property for 1 year after the termination of the contract? Yikes!

continued...

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May 10 2010
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