Quote:
Originally Posted by billsr
I think some of your confusion stems from the fact that you do not understand buyer-broker agreements. I have been using them since the late 1970's. I call mine Right-to-Locate Agreements. The buyer and I agree, in writing, on what we are searching for and a commission amount to be paid by the buyer.
If I receive part of the Seller/Seller Agent's commission than I must subtract that from what the buyer owes
and yes I do rep the buyer with that agreement and I make it very clear to the Seller/Seller's Agent from the very first contact. I also receive a retainer when the R-T-L Agreement is signed. I have an abundance of repeat business and all of my repeat buyer clients require the R-T-L. I am very good at what I do and very knowledgeable so I have no need to search for buyer clients. I, also, get a lot of referrals. I have a reputation for resolving difficult and "impossible" transactions.and accomplishing more than my clients expect. Most of my buyers recognize this and are eager to sign a contract and pay the retainer so that I can rep them.
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Do you work as an agent in Florida? I am a contractor who has bought and sold homes throughout Florida. I have never come across a buyer who had a contract with his buyers agent. When selling my remodeled homes, I was responsible for paying ALL of the commissions.
A buyer in Florida does not NEED to use a buyers agent. It is a choice. A buyer can deal with the listing agent direct, or use the help of a knowledgeable friend or relative, hire a home inspector to look at the home before signing the contract, get an attorney to close the deal, etc.
The buyer DOES NOT have to rely on an outside agent who is a stranger to him. He can ask for help from anyone he is comfortable with to get fair representation. If he chooses to use an outside agent, aka buyers agent, the SELLER pays the buyers agent commission. The buyer IS NOT responsible for those fees.
I suspect once the rules are changed in the real estate profession due to this lawsuit, a Know Your Rights fact sheet will have to be given to every buyer. Most buyers are unaware that they DO NOT HAVE to use a buyers agent to represent them.
Real Estate agents chiming in on this thread trying to convince readers a buyers agent is necessary is alarming to me. I have not read the lawsuit, but I believe this practice should be stopped. Brokers and agents insisting that a buyer cannot close a deal without a buyers agent is part of the reason commissions are highly inflated.