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What Michael Jacobs said. I wish you all the best with this.
We have forms for that. It would be interesting to discover why they feel this way?
In California it is called dual agency and it must be disclosed. The buyer likely thinks they will be getting a "deal" and likely will be surprised by the truth.
Kathleen Daniels, Prob...
San Jose, CA
I won't work with a buyer without represtation. I would be their agent or they would have to find someone else. A seller is different though. I have sold a home to a seller that wasn't being represented. I ended up doing extra work for nothing but we did close escrow without legal problems.
I've not seen this one before on a purchase! I'd definitely place a call into my state's legal hotline on this one. It is common on rentals.
My thoughts are:
- They'll need to use the proper forms. I wonder how they would get them without representation? I'd probably have to provide them.
- They legally can't get the commission, so I would get both sides.
If the buyers is a lawyer, he/she can represent her/himself. Otherwise, you still do all paperwork without buyer representation forms and all wavers. Commission can be an issue though, since % should go to a buyer agent and you are not. Buyer certainly can not use buyer commissions if he/she does not have a RE license. I'd be calling immediately to our legal hot line to talk to lawyers.
We have a form for them to read about why they need representation. After they read that and if they still say they don't need an agent then I will write up the sale with them signing a disclosure that clearly states they are unrepresented and I am agent for the seller.
I have had this happen a few times and it worked out fine. Buyers were happy with all the knowledge they had about the real estate transaction and how well they represented themselves.
No broker in Fl - there is a form - sounds like the buyer needs some educating
In Indiana, the Seller pays the commissions, so it doesn't cost the buyer anything. They are crazy not to use their FREE agent to do all the work! Duh!
I have never had a Buyer do that, just the Sellers to avoid the commissions.
You handle it the old fashioned way with you representing only the seller. And you need to get all of the agency disclosures signed.
there's an agency disclosure and it will say I'm a seller's agent.... period.... other provide dual agency.... I never did and those for whom I market do not either....
Have them complete the appropriate documentation from your real estate board. Let them know they can submit the offer to you and you can certainly supply the forms; if requested.
Sharon Kowitz In my State there is no law that you have to represent the Buyers. You do have to disclose that you cannot give them any advice as to pricing, terms, etc. and that you strictly represent he seller. We can fill out the offer per their terms. Care should be taken as to not give the impression of an Implied Agency.
We have a State mandated agency disclosure form here to specify who is being represented. In this case both parties sign the form to acknowledge the Seller is being represented and Buyer is not. If Buyer says they do not want/need representation it is NOT Dual Agency, you are representing the Seller and the Buyer representing himself (no agent) and the offer to purchase can be completed by you with the desired terms of the Buyer without the need for an attorney.
No, as is it will affect your E & O if the buyers file a claim .
We just use the appropriate forms.
Title & escrow company.
It's the buyer's decision. And it's a free country. I ask the seller how they want me to proceed with some limited representation to the buyer to see the deal through successfully. I proceed the same way, except I make sure the buyer signs additional disclosures that the buyer is confirmed unrepresented by their own choice.
Let them go to an attorney
Almost every document would include a statement that buyer is representing self...Where it may benefit my client, I would help and in some instances, charge accordingly
Buyer is unrepresented. We have a form for that. And we disclose that I reresent seller. I fill out paperwork, and suggest they take it to their attorney for review, but they might still decide to skip attorney and rely on what I tell them. Start with the offer, help them prepare their offer, then I take it to seller. It's the same process, except that they don't have an agent. Another option would be to explain to them what a Desiginated Rep is.
Kevin May answered it for Florida transactions!
Follow the rules in your state.
Yep, we've got a form for that.
Yes someone other than yourself submits the offer.
We have them sigh a disclosure that they do not wish to be represented.
Refer them to another agent in our brokerage to represent them. Period.
In Floride we would simply transition to a Transaction Broker relationship and press on.
We have a non-representation disclosure form, it is filled out and we move on.
Hella M. Rothwell, Broker/Realtor® explained how it works here in Hawaii.
Already built into our forms.
It becomes a dual agency transaction as long as the buyer and seller agree to this, and normally they would. In California, your fiduciary remains with the seller, though. In Hawaii, although called dual agency, is more transactional where your fiduciary is then to both buyer and seller. It's done all the time in both states where dual agency is legal.
Sharon Kowitz - they still sign the agent disclosure saying you represent the seller!
I have them sign a document stating that I have been advised that they should seek legal advice and/or hire an agent if they sign off on that I just prepare the paperwork and have them sign as the sellers agent......
I would seek counsel on this - it's likely different in each state. In NC, we have them sign their lives away, stating that they're unrepresented buyers! Regardless, it STILL makes me uncomfortable...as does dual but, that's a whole other blog post!
You can advise them, but you cannot make them do anything. In CA you can have dual agency and it is disclosed from the onset. In commercial real estate attorneys were on both sides of the equation. A
First concern is a buyer who wants to put in an offer who says they DON'T need an agent. Ha. That alone is a red flag. If you want, and legally can (and all parties agree) do dual agency that's a possibility but I would be inclined to refer them to an agent to help them.
Check my answer on your blog on this.