About the Buyers Representation Agreement and Why you Do Want one before you Purchase a Home. You Need a Buyers Representative Agreement! Let's Speak Briefly about the Law of Texas and Real Estate and Sales. Why do I want a Buyers Representation Agreement? Aren't they just for the agent? Who Benefits? Well those are great questions .. and here are a couple of informative answer.. In the State of Texas, ALL Realtors represent the seller, UNTIL you as a buyer or tenant have a WRITTEN Buyers Representative Agreement with said Realtor. What that means specifically is.. All Sellers or Landlords have signed a Written Agreement for the rights to Sell or Rent/Lease a specific property. So that is what we could call the Sellers Agreement. In the State of Texas, unless you a Buyer, have a signed agreement then with an agent, all agents are Subagents to the Listing Agent for the seller. now if that isn't as clear as mud, let me see how else I can explain it. A Subagent is still representing the Seller, not you the Buyer, a Subagent is working from the details set forth in the Listing Agreement as a representative of the Seller. Without a specific agreement, contract so to speak, with an Agent you the Buyer do not have any Representation. Only someone to fill in the blanks. That is not true Representation. So when you are asked to sign a Buyers Representation form it is for your protection, so the Realtor can do the best job possible for you and not be forced to work for the seller. Remember a Buyers Representation Agreement can be term limited for just one day of showing or for a month or for a year. It really does put the Realtor in your Corner! Without a Buyers Representation Agreement a Realtor if forced to work for the Seller, terms, comments, negotiations, anything and everything. A Buyers Agent will act in the best interest of the BUYER and not tell the seller about ability for price, terms or negotiations until under contract. At which time a Buyers agent has a fudiciary responsibility to the Buyer to represent the buyer in the best possible way, putting the Buyers interest foremost in and during any contract negotitations and all donfidentiality. Below is in part text from the Information About Brokerage Service that must be provided all Sellers and Buyers including Tenants at the first substainal meeting between any agent and prospective buyer or seller. Texas law requires all real estate licensees to give the information
about brokerage services to prospective buyers, tenants, sellers and landlords.
IF THE BROKER REPRESENTS THE OWNER:
The broker becomes the owner’s agent by entering into an
agreement with the owner, usually through a written -
listing agreement, or by agreeing to act as a subagent by
accepting an offer of subagency from the listing broker. A
subagent may work in a different real estate office. A
listing broker or subagent can assist the buyer but does
not represent the buyer and must place the interests of
the owner first. The buyer should not tell the owner’s
agent anything the buyer would not want the owner to
know because an owner’s agent must disclose to the
owner any material information known to the agent.
IF THE BROKER REPRESENTS THE BUYER:
The broker becomes the buyer’s agent by entering into an
agreement to represent the buyer, usually through a
written buyer representation agreement. A buyer’s agent
can assist the owner but does not represent the owner
and must place the interests of the buyer first. The owner
should not tell a buyer’s agent anything the owner would
not want the buyer to know because a buyer’s agent must
disclose to the buyer any material information known to the
agent.
If you would like the complete edition of the Texas Information about Brokerage Service follow this link to see the whole document.
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