Exclusive Buyer’s Agency
Texas Laws of Agency
home buyers be aware!
In Texas, unless you have an agreement with a real estate agent (written or oral), ALL agents represent the Seller. Texas is also a dual agency state, except it’s called “intermediary agency.” That means that a real estate Broker (K/W, Century 21) can represent both parties in the same transaction as long as they have written permission in advance. Bottom line is this: if your agent doesn’t work for a Broker that ONLY represents buyers – like HelpUBuy America – they can legally flip flop between buyers and sellers. When you’re buying a home, that is NOT what you want!
“Finding out ‘your agent’ is actually representing the seller AFTER you’ve found the house you want to buy is a very bad thing!”
What is an Exclusive Buyer’s Agent
An Exclusive Buyer’s Agent represents only the home buyer in a real estate transaction. They work within a company that never represents sellers. Because of that, Exclusive Buyer’s Agents and their company have a unique relationship with their buyer-clients, which includes the duties of loyalty, obedience, confidentiality, obedience, accounting, reasonable skill and care, and disclosure.
This level of protection and dedication is not available under other types of real estate agency. By the virtue of their unique relationship with the home buyer, Exclusive Buyer’s Agents will disclose information to the buyer that materially affects a buyer’s best interests, even if that information is detrimental to the seller! The listing agent cannot make such disclosures and must remain loyal to the seller.
“Consider an exclusive buyer-broker who will represent only you, not the sellers. Nonexclusive real-estate agents tend to show you their own listings first, since they won’t have to share the commission if they represent both the buyer and the seller. Then they’ll probably show you their firm’s listings, since they stand to gain from those sales as well.”Consumer Reports
Buyer’s Agents vs. Exclusive Buyer’s Agents
Don’t confuse Exclusive Buyer’s Agents with a regular Buyer’s Agent, who works for the seller one day and the buyer the next. A “Buyer’s Agent” is simply a “Dual Agent” in disguise, and “Dual Agency” is the worst case scenario for the buyer. Consumer Advocates in American Real Estate (CAARE) says that “intermediary agency is actually worse than dual agency because it legalized the intentional misrepresentation of dual agency.”
When you want to buy a home without getting ripped off, hire an EXCLUSIVE Buyer’s Agent!
A dual agent represents the buyer and the seller in the same transaction. The Broker collects a double commission and the parties have no representation. Consumer advocates call dual agency the biggest scam in real estate.
Texas is a dual agency state, but the agents are called “intermediaries.” It means that the Broker can represent the buyer and the seller in the same transaction.
Buyer’s agents are dual agents in disguise. They represent buyers one day and sellers the next. One day they work for you; the next day they work against you. Buyer’s agents work for companies that represent both buyers and sellers (Re/Max, Keller Williams, Ebby, Century 21, etc.).
exclusive buyer's agent
Exclusive Buyer’s Agents work solely for buyers, so there is NO conflict of interest to jeopardize your negotiating position. It’s all buyers, all the time. No exceptions. Hiring an EBA is the surest way to reduce your risk and to have a low-stress buying experience.
Dual Agency . The Biggest Fraud in Real Estate
The following is an example to illustrate what it is like to work with a dual agent. Suppose you drive by a house that interests you and notice that there is a Century 21 sign in the yard. You decide to call the number printed on the sign, and a very nice Realtor answers the call. This Realtor was hired by the owners of the house to sell their property and to get them as much money as possible.
On the phone, the Realtor offers to show you the house, so you set up a time to meet and view her listing. You like the house but are not ready to commit, so the Realtor offers to show you some other homes that you might like. While looking at the first house, the Realtor represented the seller. Now they are showing you other agents’ listings in which they would represent you as a buyer’s agent, should you opt to buy one of those homes.
In the meantime, they’ve asked you questions and have a clear picture of your purchasing power and the level of your motivation. If you decide to buy the first house they showed you (or any of their other listings), they have to turn you over to someone else in their office, but would be legally obligated to tell their seller/client everything they know about you. And, from the seller’s standpoint, the agent used their house as a source of buyer leads. The seller most likely shared all of their secrets with this agent, only to have that information used against them if both the buyer side and seller side of the transaction are handled in-house with the same broker. It’s a convoluted mess, it’s unfair to both the seller and the buyer, and the only ones who win here are the Realtor and his/her broker.
From Consumer Advocates in American Real Estate
“Using a big brokerage firm almost guarantees that you will forfeit your right to representation and increase the likelihood that your broker will collect a double commission. Double commissions occur when the brokerage firm represents both the buyer and seller in the same transaction. The likelihood of this happening is multiplied when consumers choose a big brokerage firm.
Big brokers are so addicted and adept at manipulating their clients into risky dual agency/double commission transactions, that sophisticated and almost undetectable schemes that increase the frequency of dual agency have become routine. Those schemes have robbed consumers of the ability to make informed home buying and selling decisions and have subjected them to absurd conflicts of interests that are illegal in every other profession.”