Addendum - Comments on Exclusive Buyer Agency...
Unfortunately - a number of traditional Real Estate Agents are co-opting the term because it sounds nice - erroneously calling themselves an "Exclusive Buyer Agent" -- only because they have an Exclusive Right to Represent Contract.
Because they work for a company that lists property for sale, (they likely list property for sale themselves perhaps 95% of the time - representing sellers) - they are NOT Exclusive Buyer Agents.
Even more unfortunately - the Illinois Association of Realtors is thinking about calling the "Buyer Agency Agreement" an "Exclusive Buyer Agency Agreement" -- which will only confuse the public even more! As if they weren't confused enough about how the Real Estate Industry really operates!
Of note - Illinois abrogated the Common Law of Agency in the year 2000 in favor of legislating "Designated Agency" as a business model -- which is really "dual agency" in sheep's clothing.)
The article goes on to say... "In these states the driving metaphor is almost as perfect as the legislative action is absurd -- "transaction brokers" and "designated agents" are now licensed to drive whichever side of the road suits them! Making it legal (designated agency) doesn't change the reality of the certain collision course, nor does it erase liability for collision damage. Common sense enables you to see that clearly in motor vehicle law; and the common sense of centuries of practice put it into the Common Law of Agency. Traffic in a single lane cannot go in both directions, and agency in a single firm cannot serve both buyers and sellers!"
In fact - disclosure of the implications of their representation, and potential conflicts of interest or future conflicts of interest - by agents who work at companies that list property for sale, is very low. Consequently - most buyers get totally "blind-sided" by the realities of representation by such an agent. At the time, National Association of Realtors (NAR) general counsel Laurie Janik told Realty Times, "Disclosed dual agency is probably the most difficult form of representation to perform properly," says Janik. "These statistics say that people are being sloppy. They need to take agency disclosure requirements seriously; it is a critical element of consumer protection. I don't think it is good for practitioners or consumers that the trend line is going down. We aren't going in the right direction -- compliance is worsening."
All content - copyright © 2002-2004, Relocation Advisors Group Inc. All rights reserved.