Realtor is asking me to sign “buyer representation agreement-exclusive” from California Association of REALTORS. Should I worry about it?
I found a new realtor to buy a house (first time) and he is asking to sign “buyer representation agreement-exclusive” from California Association of REALTORS. What are things to keep in mind before signing this form? And buyers inspection advisory. Please let me know if you have had good experience in past with these forms? What is worst that can happen?
- realtor.sailorLv 71 month ago
Here's what the California Association of Realtors says; The BR-11 does not as it is non-exclusive and revocable. The buyer may switch brokers at any time. While this form does not commit the buyer to one broker, using two different brokers on the same piece of property is very confusing to all parties and may not help the buyer at all in negotiating with the seller. A better practice by a buyer would be to revoke one agreement before entering into another with a different broker. The NAP-11 does commit the buyer to paying the broker (irrevocable) in certain circumstances, but it is non-exclusive which means that the buyer may use more than one broker. The broker only gets paid if the broker introduces the specific property to the buyer or otherwise acts on the buyer's behalf. It would be permissible to use this contract with two different brokers on two different properties without paying both. The AAP-11 commits the buyer to a single broker for the transaction. It is exclusive and irrevocable. Even if a buyer enters into another agreement with another broker, or uses another broker without the benefit of an agreement, if the buyer acquires the property identified in the agreement the buyer may still owe the broker compensation.
- 1 month ago
You will be tied to that agent. But you don't have to sign anything. Unless all the agents in your area have the same requirement of course.
- A HunchLv 71 month ago
Don't sign the buyer representation agreement-exclusive. The exception is that you have found a specific house that you are putting an offer on with this realtor. If that is the case, make sure the agreement is only for this property.
In some areas of the country, it's customary to have a buyer's agreement with a realtor. In California, it's not unheard of (like you are finding) but it's not usually used.
By signing that form, you are saying that you are going to pay this specific realtor a commission if you purchase a house during the contract period. You may not be able to cancel it even if he is a jerk, you don't want to work with him, and have a another realtor you would rather work with.
If this realtor won't work with you without you signing the form, find another one of the 100s of realtors in neighborhood who will work with you without the form
There are two different buyer inspection advisory forms.
1. The seller to the buyer = this is for a specific property. It's basically informational and states the importance of understanding the condition of the property, the buyer’s rights to investigate, and outline the types of inspections a buyer can obtain.
2. The broker to the buyer = identical to the seller version except it's the broker reminding you about the information you can gather during the home buying process. There is no problem for you to sign this.
- curtisports2Lv 71 month ago
Signing that form means you can't use anyone else to help you find a house. Read it carefully. You may be signing yourself up for paying this person a commission if they find you a house that you buy.
- What do you think of the answers? You can sign in to give your opinion on the answer.
- A.J.Lv 71 month ago
A seller agent exclusive contract is sensible. Agents spend money marketing a home and any sale requires the agent collect the agreed fee. When I bought here in Las Vegas, I did not use an agent. I've bought and sold about 8 times, and just used web sites and called selling agents. I told each if they wanted to show me anything that is the way I described what I was looking for, that I would see it. I was only visiting 7 days and needed no buyer agent services. I was buying cash; no loan in a fast close date. I knew the market better than they did. Eventually, a seller agent that normally only represents banks showed me what he was selling and then another nearby apartment, and I negotiated the price and terms. He said I was a dream client and gave me a $150 bottle of Dom Perignon at closing. Six or seven other agents got nothing, but they didn't do much.
If you are asking your agent to drive you around and show you properties and hand-hold you through the process, and as a first time buyer they know you need help, the contract is so they collect their commission from the selling agent. When you sign, you commit to that agent. Check its date of expiration and limit it to 90 days. If you don't like the agent, you need a date when you can change agents.
The Buyer Inspection Advisory has two versions. A Buyer Inspection Advisory from the seller to the buyer, and a Buyer Inspection Advisory from the broker to the buyer. The two documents are almost identical, the only difference is who provides and signs the advisory. Sellers and agents can lie and the form covers them. California law imposes a duty on the buyers of real estate to perform inspections. You are responsible to hire the necessary people to find any issues with the home. That is what the form is for. The homes are sold as-is.
For one home I bought, I hired an HVAC inspector (Heating, ventilation, and air conditioning). I wanted to know the condition of them. You have the option to hire any inspectors you want. Often, there is only a pest inspector and general home inspector.
- 1 month ago
This is a standard agreement that you will not use any other real estate agent to find a house. Also, the builder inspection advisory likely just tells you that the inspection may not identify all existing issues, and possibly you have the right to select your own inspector. Read the paperwork carefully and ask any questions you have if you do not understand. Do not sign if you are not comfortable. The real estate agent works for you so make sure it is someone you feeel understands what you want.