When "EXCLUSIVE Does Not Mean EXCLUSIVE . . . .
By Eric Kruse
Broker The Buyers Advocate Realtors
Huntsville, Al
256-532-1001
Traditional agents try their best to make it seem like they offer Exclusive representation on all homes.
One interesting technique used in my market is, my Board of Realtors created a Buyer Agent Agreement that is Titled "Exclusive Buyer Agency Agreement".
But this agreement is far from Exclusive. About half way down the agreement page they have inserted a clause allowing the agent to switch to a Limited level of representation. In my market they call it "Limited Consensual Dual Agency". Let's break this term down. There are all kinds of Red Flags In it.
Limited . . . this means the agent is limited in giving the buyer full representation. Meaning the agent cannot negotiate for the lowest price for the buyer. The agent cannot share information with you that could enhance the buyers bargaining position. The agent will not share neighborhood comparables if their company has listings in that neighborhood. I agree that the buyer is definitely limited in having an agent that will look out for them when they agree to this.
Consensual . . . . So the assumption here is; If it is disclosed to the buyer that they will be receiving limited representation, and the buyer consents, then it's OK for the agent to take the buyer down this path of reduced representation. . . . . ? ? ? I really scratch my head on this concept. Amazingly, it is allowed in Alabama. But the Buyer does not have to agree to it.
Dual Agency . . . . Dual Agency is illegal in many states - as it should be, but is allowed in Alabama. As long as the buyer agrees to "limited", reduced representation..
But should a buyer agree to these conditions? Absolutely not !
Are there companies out there that do not practice Limited Consensual Dual Agency ? YES !
It's real easy to find a real estate company that does not practice Limited Consensual Dual Agency.
But 99% of the main stream companies will not because they cannot avoid it. You see in Alabama if a company shows one of their own listings, they become a Limited Consensual Dual Agent by law. The only way for a real estate company to avoid Limited Consensual Dual Agency is to not take listings.
When a company takes a listing, they have agreed to represent the seller. If they bring a buyer to that listing . . . there lies the situation which creates the Conflict of Interest which produces Limited Consensual Dual Agency.
As I mentioned earlier about finding companies that do not practice Limited Consensual Dual Agency. All you need to do to guarantee that you do not end up in the Dual Agency Trap is find a company that does not take listings, meaning they never represent sellers. Are there companies out there like that?
YES ! . . . . The Buyer's Advocate is such a company.
Click the link below to view a Real "Exclusive Buyer Agency Agreement". If you choose our company, this will be the agreement we use. If you are not from our market or if you choose another agency, feel free to use it.
Real Exclusive Buyer Agency Agreement