Buyer Brokerage It is the Law!

Let me start out with this concept; When selling a piece of property one hires a Realtor to represent their interests! When purchasing a piece of property, You also hire a Realtor! A buyer will have a number of professionals working on their behalf. They hire an attorney, a home inspector, a pest inspector, a mortgage rep, and other professionals to protect your interests. The law states that for a Realtor to show you property a brokerage relationship needs to be established prior to the showing and that agreement needs to be in writing. (A copy of this law and samples of brokerage agreements can be found on my site
http://www.jeffcoltsellsconnecticut.com/BrokerageLaws.) This law has been established for the protection and notification of the buyer and seller to indentify who the (Realtor(s) / Brokers) are working for in the transaction. The premise for this is quite simple, yet oftentimes creates confusion if not dealt with on the first meeting. Establishing this relationship between buyer and seller as soon as possible is crucial to ease into house hunting. The buyer should be aware of the relationships available and should be well informed of the buyer's and agent's responsibilities to each other. There are a number of ways to create relationships based upon the needs of the buyer. Time frames, geographic locations & specific house are a few of the criteria points that can be negotiated at the time of setting up the brokerage agreement. Buyers need to realize that once a relationship is established that an agent has very specific fiduciary responsibilities to the buyer. Also, the buyer has specific loyalties to the agent that are spelled out in the agreement. The main reason that this law was created was to avoid misrepresentation, or buyer information leaking into the hands of the seller. Previous to this law, the Realtors worked as a subagent of the seller. Logically, the law was passed to divide the representation into a buying and selling side.
So what happens when an agent or agency handles both sides of a transaction? Again, the buyer brokerage agreement as well as the listing agreement spell out how this can be handled. The most important point is for the agent to fully disclose to both parties that there is one agency handling both sides of the transaction and that the fiduciary resonsibilities of parties will remain confidential. If the buyer is uncomfortable they have the right to ask for a designated agency to be created. During this time of real estate unrest; establishing a buyer brokerage is very important. The agent should perform the following duties for the buyer.
1. Attempt to locate properties that meet the buyer's needs. (Establish an automatic computer feed of properties that meet the criteria)
2. Inform the buyer of competing sales in the area to help establish values; enabling the agent to negotiate on the buyer's behalf for terms and conditions agreeable to the buyer

3. Assist you in the purchase, exchange or lease, as the case may be of the property. Provide the buyer with a list of quality, proven professionals to assist in the transaction. Referrals of attorneys, inspectors, lenders etc that will work on the buyers behalf.
4. Act in the buyer's best interest regarding the location and purchase, exchange of the property. Advise the buyer with regards to inspection results, further negotiations and handle issues up to the closing. Meet with the bank appraiser, be there for the final walk through and attend the closing to be sure that all ends well.

For more information on buyer brokerage or general Real Estate matters please contact me at 203 586-9167 or email me
Preview of coming blogs... Shame on the banks!
Have a Safe & and Happy New Year !