There is a world of difference between what 4 Buyers Real Estate means when it calls itself an Exclusive Buyer Agency and what the various local offices of the National Association of Realtors means when they say “exclusive.”
When Realtor Associations say “exclusive”, they mean that the buyer is responsible to work exclusively (only) with an agent from a specific company. The agent will do the real estate work, and the specific company will get paid. You will see these terms:
Exclusive Right to Sell. (That’s the rights of the real estate agent and the specific company to get paid when the property is sold).
Exclusive Buyer Agency Agreement. (That’s the rights of the real estate agent and the specific company to be paid when the buyer closes on a property).
When 4 Buyers Real Estate says “exclusive,” we mean that every agent in the office works exclusively (only) for buyers. No one in the office will be working for the seller of a house you might want to buy. No one in the office thinks bidding wars and prices getting bid up is a good thing. We’ve used the term “exclusive buyer’s agent” or “exclusive buyer’s brokerage” to mean every agent works for buyers since before the beginning of the National Association of Exclusive Buyer’s Agents in 1995.
What’s NOT exclusive about Realtor exclusive buyer agency agreements?
The “exclusive buyer’s agency agreement” written by the Massachusetts Association of Realtors has four versions.
One includes buyers consenting to Designated Agency.
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The other has buyers consenting both to Designated Agency and Dual Agency.
The third includes buyers consenting to Dual Agency.
This legal language is what the Realtors Association is asking buyers to consent to:
- Consent to Designated Agency. A designated agent is a real estate licensee who has been appointed by a broker or a salesperson to represent a buyer as a “designated buyer’s agent” or to represent the seller as a “designated seller’s agent.” When a buyer or seller consents to designated agency only that designated agent represents the buyer or seller. Any other agents affiliated with BROKER may represent another party to the transaction and by consenting to designated agency the buyer or seller permits those agents to represent another party. Individuals who are designated agents owe fiduciary duties to their respective clients. BUYER is further advised that: (a) the designated buyer’s agent will represent the BUYER and will owe the BUYER the duties of loyalty, full disclosure, confidentiality, to account for funds, reasonable care and obedience to lawful instruction; (b) all other licensees affiliated with the appointing BROKER will not represent the BUYER nor will they owe the other duties specified in paragraph (a) to that BUYER, and may potentially represent the seller; and (c) if designated agents affiliated with the same broker represent the seller and buyer in a transaction, the appointing broker shall be a dual agent and neutral as to any conflicting interests of the seller and buyer, but will continue to owe the seller and buyer the duties of confidentiality of material information and to account for funds. By signing this Agreement, BUYER consents to designated agency. If designated agency occurs in a transaction, a notice of designated agency will be given. The designated agent(s) for the BUYER is/are: ___________________________________________________________.
In the event that the designated agent appointed to represent BUYER ceases to be associated with the BROKER, BUYER hereby consents to appointment by BROKER of one or more agents associated with the BROKER to represent BUYER. Written notice of that appointment shall be given by BROKER to BUYER in a timely manner.
- Consent to Dual Agency. The BUYER understands that the designated buyer’s agent with whom BUYER is working also represents sellers and that if the BUYER is introduced to a property listed by that agent on behalf of the seller, a “dual agency” will be created. The designated buyer’s agent may act as a dual agent who represents both prospective buyer and seller with their informed written consent. A dual agent is authorized to assist the buyer and seller in a transaction, but shall be neutral with regard to any conflicting interest of the buyer and seller. Consequently, a dual agent will not have the ability to satisfy fully the duties of loyalty, full disclosure, reasonable care and obedience to lawful instructions, but shall still owe the duty of confidentiality of material information and the duty to account for funds. BUYER understands that material information received from either client that is confidential may not be disclosed by a dual agent, except: (1) if disclosure is expressly authorized; (2) if such disclosure is required by law; (3) if such disclosure is intended to prevent illegal conduct; or (4) if such disclosure is necessary to prosecute a claim against a person represented or to defend a claim against the broker or salesperson. This duty of confidentiality shall continue after termination of the brokerage relationship. When the agent with whom the buyer is working is a dual agent, that broker with whom the agent is affiliated is also a dual agent and shall remain neutral as to any conflicting interests of the buyer and seller. By signing this Agreement, BUYER consents to have the designated buyer’s agent(s) act as a dual agent. Except as expressly provided, this dual agency shall not extend to other licensees affiliated with BROKER. If dual agency occurs in a transaction, a notice of dual agency will be given.
Neither a designated agent nor a dual agent is representing your interests exclusively!
The fourth version is one that we at 4 Buyers Real Estate could use. It does not ask buyers to automatically consent to anything except buyer agency where every agent works for buyers.
See the difference?
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