Exclusive Buyer Agency Agreement

"Brian, we'd like to go out this weekend and be shown some properties. What time can you pick us up?"

(of course the caller would not want to hear any of this, all they want to do is just be shown properties and have someone drive them around -- for free with no strings or commitments involved or attached.) -- Tim & Debbie this one's for you.  I understand you went through several Realtors before finally buying a place.  I feel shot at and missed and am glad we didn't end up working together, or I'd be one of those first couple or few who got burned. or whose services you "stole" before you finally wisened up and got with the program.

This is how I weed or cull the serious from the curious and the prospects from the suspects.  Any real or serious able, ready and willing home buyer would not or should not have any problems with these reasonable and fair requests below.  A lawyer would not just go jump in his car upon request and start filing motions, pleadings, court orders, etc without first being retained and knowing everything about the case, right ? RIGHT ! My script would go something like this:


I am just as anxious as you are to get started and I appreciate the opportunity to be your Realtor and look forward to working with you.  I am a licensed professional, however, and before we just jump in the car and go out looking at properties we'll need to sit down together first at my office and discuss a few things and put together a plan of action or strategy together based on a clear understanding of what your needs and search criteria or parameters are -- otherwise I'd just be your "taxi driver and locksmith for the day" which I can do for a fee of course.  Before going out with a prospective client I require four (4) things:


1)  A signed Buyer Agent Agreement form

So I know whether I am representing you in the capacity as an exclusive Buyer Agent, or merely assisting you as an uncommitted agent and who will actually be working as a sub-agent for the Seller.  This makes a big difference in fiduciary duties, disclosures, and the approach I'll be working with a person. In other words, am I your actual and designated exclusive buyer agent and representative for not only today but beyond until you buy a house and go to closing on it, or would I just be showing you properties for the day as a Seller's sub-agent?  If it is the latter that you want, or you want to work with multiple buyer agents at a time, then I'd in essence just be the taxi driver and locksmith for you of the day, in which case I charge $XXX per day to take you out. If we write a contract on a property today, and it goes to settlement; then I will gladly refund that amount for today's services to you.

2)  Agent Retainer Fee Deposit

If after meeting and having an initial free consultation with me you decide that you would like to retain my professional services for as long as it takes to find the right house for you and to go to closing on it, then we will need to sign that Exclusive Buyer Agent agreement that I just spoke about previously, and I also require an Agent Retainer Fee Deposit, which you can pay by check.  I will not cash that check but will merely hold it  in your file as a deposit (all of this is clearly spelled out and stipulated in my agent retainer agreement form).  Generally speaking, the Seller will pay the buyer agent brokerage fee or commission for you and you would be getting my professional services free of charge or no direct out-of-pocket expense to you; however, until such time as you do go to settlement I will be the one who incurs actual out-of-pocket expenses advanced to you or on your behalf.  Therefore, the deposit is required to cover or recuperate actual out-of-pocket expenses i will be advancing you in the event that you do not buy a property for any reason.  While I wish I could take every case on a "pro bono" basis or receive some type of government grant for my professional services; this is how I make my living...      

3)  Buyer Has a Lender's Pre-Qualification or Pre-Approval Commitment Letter

I need to know what type of financing you have applied for (VA, FHA, Conventional) and what lender conditions or requirements are involved in the purchase of our new home which may impact what price range we are looking for homes in, the amount of down payment required, etc.  If you own a property now and are going to keep it as an investment property and rent it out, will your lender require you to have your property already leased out prior to you entering into a sales contract for your new home ?  If  you are "trading-up" for a newer or larger home (or even trading-down for a smaller one) will your lender allow you to do a "bridge-loan" type of arrangement where you can settle on your new home and carry the mortgage also on your existing home until you have your present home under contract ?  All these things can, do and will affect timing considerations on contract presentations as well as the contract's terms, contingencies and closing dates. I need to know or have some idea about all this before we just jump in the car looking at properties; unless of course you opt for that "hire a taxi driver and locksmith for the day" arrangement.

4)  Are there or will there be other people influencing 
or part of this transaction that I may not be aware of ?

If there are parents, grandparents, boyfriend/girlfriend, domestic partner, financial adviser, spiritual adviser, mentor or any other person or party that will be involved in the decision making process, or who is not on the loan application or who will not be on the deed, but who will be involved in the process of buying a home with you; I need to know and meet with everyone who you (and I) will be working with -- whether that be directly or indirectly.  If there are others involved who I may not be aware or need to give you "approval" for you putting a contract on a property, we will all need to go out looking at properties together to the maximum extent possible; as I cannot be showing the same property on multiple occasions to  multiple people in your party.  If this does apply to you, then we (uhm.. I mean YOU) can rent a bus and we can all go out at one time and show up at each property like The Partridge Family bus !  LOL  : )