Despite
the use -- and usefulness -- of computers in the real estate business nowadays,
the number of forms people are being asked to sign is increasing. The
latest example is what's called a Buyer Customer Service Agreement that,
gulp, sets out in writing how buyers are not going to be served
if they're in the hands of listing agents and other real estate people whose
primary duty is to look after the seller's best interests.
Whether the form will be put to much use is perhaps debatable. Some
courage is going to required for an agent to, in effect, tell the truth
about what they will -- and will not -- do when faced with
a buyer. It's certainly going to be easier to come up with a Buyer
Agency Agreement, which spells things out more positively -- EXCEPT
that a listing agent isn't in a position to make such a proposal, nor is
any salesperson acting in what's called a "sub-agent" capacity.
I know I'm not alone in fretting about how well the legalities are understood -- and never mind observed -- by many agents, let alone the public they're dealing with. Yet the right and necessary approach to sellers and buyers isn't all that complicated. An agent's primary duty is to look after a principal's best interests, which makes them a client and therefore labels anyone else a customer who's entitled to honest and fair dealings (but no more than that). The differentiation is clear enough when it comes to a Listing Agent whose commitment to a seller/client is to get what I'm fond of referring to as "the most money for the house." There's also no doubt regarding a Buyer Agent's role in getting his buyer/client what I like to call "the most house for the money." However, when an agent doesn't have so obvious a connection with people, the situation is open to question -- and ergo the sense of setting things out in writing or, at the least, ensuring sufficient verbal explanation for a potential purchaser to know what level of service can be expected from the agent.
In
my January newsletter,
I argued against signing a Buyer Agency Agreement and I suppose I must now
make a case for ignoring the need for a Buyer Customer Service Agreement.
At the same time, though, I did mention my ongoing habit of making my relationship
to people unmistakably clear: I'll treat them as clients from day
one and run the risk of losing them if I don't live up to the expectations
this implies. Thus, I'm not afraid to suggest that an agent who'd
rather not (or, representing the seller, is legally unable to) treat a buyer
as a client simply needs to eliminate, in much the same way, all doubt
about this relationship. Or, if you wish, this kind of agent should
make quite sure that people who want to buy something know that they're going
to be treated as customers not clients -- which, of course, is the reason
why the Buyer Customer Service Agreement is now being put forward as a means
of proving the fact.
In any case, though, a buyer will end up having to sign a Confirmation
of Co-operation and Representation -- as my January newsletter also pointed
out -- so that the relationship with the agent who's representing their
side of an offer is made clear to them and everyone else involved.
However,
in view of all this, what should you do as a buyer when meeting up with real
estate salespeople?
Understandably, I'll urge you to appoint someone as your Buyer Agent and
thereby make yourself a client. I'll also suggest that you shouldn't
simply assume but ensure that the agent knows the primary duty
he/she is taking on. Alternatively, if you choose to deal with an
agent who's listed the property you're interested in, be forewarned that
you'll be treated as a customer, whether or not you're asked to sign a Buyer
Customer Service Agreement.
In other words, don't take for granted that agents understand their duties
as well as their brokers, their local boards, and organizations like OREA,
CREA, and RECO wish they did. With all due respect, too many of them
don't.
In fact, the old saying that the best customer is an informed customer
can hold true even when you make it your business to become a client!
Duncan
Pollock, Real Estate Broker,
427 Gate Street, Niagara-on-the-Lake, Ontario, Canada L0S 1J0
Tel: 905-468-3154 Fax: 905-468-3812 Cellular: 905-704-9037
email: duncanpollock@sympatico.ca
Note: E-mail
addressed changed as above on Nov 3 2007
website: http://www.duncanpollock.com