The real estate agent had never met the seller of a particular home but the law stated that the real estate professional was an agent for the seller. This is almost unheard of now, but some companies and or their agents still use this practice.
The real estate laws have changed but in the best interests of the buyer or seller, whomever the agent represents. Real Estate professionals now use a form called an "Agency Disclosure". This form should be signed by the party to the transaction PRIOR to writing an offer on a home. This will assure the buyer the agent negotiates an offer in the buyer's best interests.
Over the years I've known several buyers who actually think they will save money by dealing directly with the agent who is the listing agent on a property. This listing agent then writes an offer on behalf of the buyer but the agent's fiduciary duty is to get the highest price for the seller, not the lowest price for the buyer. This strategy can actually cost the buyer thousands of dollars more when the negotiations start.
As a buyer you want to know who's working for you and looking out for your best interests. Do not take "representation" lightly as it could cost you thousands of dollars. Let's say you hire an agent who works for ABC Company. This agent shows you a home that is listed by ABC Company but by another agent in the office. Guess what? The same rules apply as above. Even though there are two agents involved in the transaction, both agents work for the same company and therefore represent the seller. Agency can be somewhat complex and there are exceptions to these laws but this is the easiest way to explain it. One way to understand this is to remember that no matter what agent you hire to represent you, whether you're a buyer or seller, you are actually hiring the "company" that the agent works for.
Most buyers don't realize this, but walking into a new home community without a real estate agent can be very costly. That's right, the salesperson at the model homes represents the builder/seller, not you the buyer. So this salesperson has a fiduciary duty to get the builder the highest price possible for the new home.
If the buyer goes to a new home community by themselves and falls in love with one of their models, then they call their agent to meet them there can be disastrous. Most builders will not allow this even if the buyer did not register with the new home subdivision on their first visit. Once you cross that threshold in a new home community, the builder will not allow you to be represented by an agent.
Although the "Buyer Broker Exclusive Employment Agreement" is not standard practice, they should be. This is an agreement between the buyer and the real estate agent which discloses responsibilities and fiduciary duties between both parties. As a buyer, don't you want to know your agent is representing you "exclusively" and the agent will due their due diligence in offering you the best service possible? The agreement by no means forces a buyer to purchase a home, but rather an agreement that discloses loyalty between the buyer and their agent.
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