As with the theme of my entire blog in general, this post will be part educational, and part entertainment.

The punch line in this post will have you thinking, “No, seriously, did that actually happen?”

When a seller puts his home on the market, he signs a “Listing Agreement” with the terms of conditions of the potential sale, as well as his relationship with the seller agent.

Likewise, when a buyer begins to search for a property to purchase, he enters into a “Buyer Agency Agreement” with the buyer agent.

The latter form was only introduced into the real estate industry during the last decade, but it’s intent is genuine and sincere.

Think of the “doctor-patient confidentiality” that we all expect when we tell our inner-most thoughts to a psychologist or the “lawyer-client confidentiality” when we discuss our legal woes with a lawyer.

Shouldn’t our interests be protected when we conduct business with a Realtor?

For quite some time, the “Buyer Agency Agreement” didn’t exist, and while the seller’s interests were protected in the “Listing Agreement,” there was no written contract outlining exactly what responsibilities a Realtor had when working with a buyer.

Once a Buyer Agency Agreement is signed between a buyer and a Realtor, it makes that buyer the Realtor’s client, and the Realtor has fiduciary duties to perform on the buyer’s behalf.  The Realtor represents the buyer and his interests, and may not divulge any information (personal or professional) about his buyer-client or the terms of his buyer-client’s offer.

In essence, the Buyer Agency Agreement is the brother-contract to the Listing Agreement, and ensures that everybody’s interests are both identified and being looked after.

A Buyer Agency Agreement should be entered into at the earliest possible opportunity, but in general practice, it’s not.

If you are looking for a property and you meet a Realtor, he or she may ask you to sign a Buyer Agency Agreement before you enter the very first property.  Actually, you’re supposed to by law.

But much of the general public is hesitant about signing on the dotted line, and who could blame them?  Especially with somebody they just met!

But you can sign a Buyer Agency Agreement for a term of one year, or one day!  You can even sign the agreement for one property, and have the agreement expire as soon as you say “no” to that particular property.

But let’s make one thing clear before me go further: the Buyer Agency Agreement is there to protect the buyer AND the Realtor.

Here’s a scenario: Johnny Realtor shows a property to Betty Buyer without entering into a Buyer Agency contract, and Betty Buyer turns around and purchases the property from Roddy Realtor.  So even though Johnny Realtor showed the property to the purchaser first, he won’t receive a sales commission.

And this is why the rest of this post happened the way it did…

I recently re-connected with a guy who was one of my best friends in high school, named Wadi.  As happens frequently during life, Wadi and I lost touch over the last dozen years, but are back in regular contact like the time never passed.

Wadi is in the market for a condominium, and last week he saw a couple of different places with a couple of different agents.

Wadi knew I was in the business, and eventually he came to me and said, “Dave, I really need one guy to look after my interests, because I have no clue what I’m doing out there.”

Wadi told me that he met a Realtor last week who picked him up in her car, and handed him a contract to sign as he was doing up his seatbelt!  She told him that “everybody signs this,” and that he had to sign it or she wouldn’t start the car!  He told her he’d like to see a condo first, and then he’d like an explanation of exactly what this three-page contract was that she wanted him to sign.

He never ended up signing the papers because he felt she was far too pushy and out for a quick sale, and because he called me and asked me to represent him.  So he sent that agent a very nice, sincere, and honest email as follows:

“Hi (blank), I appreciate all your efforts, but I’ve decided to go in a different direction and won’t be in need of your services after all.  Best of luck, and if anything changes and I revert back on my direction, you will be the first person I call.  Take care, and it was a pleasure meeting you.”

I thought that was professional, succinct, and totally fair.

She had shown Wadi all of TWO properties, and while many buyers wouldn’t bother with an email, Wadi took the high road.

But here is what she wrote back:

“A word of caution: it is noted on the system that I have been emailing you properties, specifically the two that I showed you and it is recorded that I took you to see those two properties which I will be watching at every possible moment when they become sold.  It has been proven in the courts that clients/customers that pull fast ones in the end paid out the commission listed on the property to the agents that showed them the property originally, regardless of whether there was a buyer agency agreement in place.  Good luck and it was great working with you.”

I don’t even know where to begin!

I would love to see this taught in Sales 101:

Step One: Ask for business.
Step Two: Make threats.

Who starts off an email with “A word of caution?”

I would love to meet this women, talk to her, feel her out—what makes her tick?  I am fascinated by human psychology, and I just can’t comprehend why this woman felt the need to send this email, or what was going through her mind when she did!

Chances are, she wrote this email in an attempt to feel empowered and to feel better about herself, but perhaps there’s a small chance that she actually believes the garbage she is selling?

It’s instances like this, and Realtors such as this lady, that give the rest of us Realtors and the industry as a whole a very bad reputation.

There are a lot of sharks out there, and some of them make a ton of money.

But I’m embarrassed to be in this industry when I hear a story like that!

Can you imagine if you walked into Subway Sandwiches and browsed over the menu, then walked out the door and across to Pizza Pizza, and the “Sandwich Artist” from Subway followed you and made threats as you contemplated the Hawaiian slice versus the Meat Lover?

Well, it takes all kinds…..I guess.

My own personal two cents on the “Buyer Agency Agreement”?  If somebody wants to work with me, then I would like to work with them.  If they’ll sign the agreement, then I’d be more than happy to find them a potential property to purchase.  But if somebody vehemently refuses to sign the papers, I have a choice: take them out to see properties with no agreement and then deal with the consequences, or wish them the best of luck and send them on their merry way.

But I just can’t imagine dragging somebody into court because they wanted pizza instead of a BLT…..I mean….well, you get the idea….