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Friday, June 11. 1999 Designated Agency became the legal standard in Indiana on July 1, 1999 The National Association of Exclusive Buyer Agents (NAEBA) is squaring off with the National Association of Realtors (NAR) over the issue of designated agency. Designated agency - which allows one real estate brokerage to simultaneously represent both buyer and seller in a real estate transaction - was recently thwarted in Connecticut and Massachusetts legislatures. But NAEBA contends NAR is continuing to lobby in state legislatures for designated agency. "State by state, NAR is sending its powerful lobby into the legislatures with a single goal of tearing down a precious pillar of our legal culture and replacing it with designated agency," said Richard Machado, NAEBA president. "NAR, apparently undaunted by its failures in (those) two states, is intensifying efforts nationwide to steal effective, proven law from the public through deceptive lobbying." NAR officials, however, stress they aren't claiming Designated Agency is the best choice all the time. "It should be available to consumers who want to choose it," Laurie Janik, NAR's general counsel, told Inman News. "We're not saying it's the only way...it's a very viable option and very consistent with what consumers expect and understand." "Suppose a buyer comes to a real estate firm and finds a listing they like that's with that company. Designated agency would allow the offices to work on the deal," Janik said. "Without it, buyers would have to find a competitor to help facilitate their side of the transaction." Yet Nader said although Designated Agency is presented as enhancing consumer choice, it ends up limiting public access to fair representation in real estate deals. "Promoting Designated Agency is a blatant attempt by the real estate industry to dilute its obligations and loyalty to customers," said Nader. "It primarily serves the interests of the industry and places consumers at the mercy of real estate licensees." The debate over Designated Agency, some time referred to as Dual Agency, heightened this week when the Oklahoma Supreme Court slammed the practice. The Oklahoma Real Estate Commission had sued a real estate office whose advertisements asked consumers to beware of dual agency. The court (ruled) with the firm, which represented buyers only. "Sellers agents and dual agents do not and cannot by law give a buyer the same degree of loyalty as an agent who acts on behalf of a buyer," the court found. >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> NAEBA is a nationwide alliance of real estate agents that only serve buyers. Members are also NAR members, but do not take property listings or represent sellers. NAR has a membership of more than 700,000 real estate professionals.
"Unlike the traditional agent who looks out for the seller, a buyer broker acts as your advocate, helping you find the home you want and then negotiating the lowest possible price. The best buyer brokers are so-called exclusive agents - that is, they represent only buyers, never sellers..." "Groups such as the Consumer Federation of America and the American Association of Retired Persons recommend using buyer's agents...The reason is that they work." "Only by using a buyer agent can a buyer be sure all information is kept confidential. Only an exclusive buyer agent can give the buyer an objective, experienced opinion of the homes viewed to ensure the buyer gets the right home, in the right location, at the right price." "To buyers: If you want representation, work with a buyer broker. They are legally obligated to represent your interests in any negotiations with sellers." "Exclusive Buyer's Agents only work for consumers and often can save them money - and they don't cost more to hire...Buyer's agents are not tied to any particular property or agency, so they will show buyers any home, even those for sale by owner." "Hire a buyer's broker. When in the market for a home, the best defense is a strong offense." Your goal should be to engage an agent who will represent your interests. Not just a buyer broker, but an exclusive buyer broker. Make sure that is what you are getting." "To protect themselves, buyers can retain their own exclusive representative called a "buyer's broker". Your local agent may offer such services, but be aware that buyer's brokers who also work as sellers' brokers can sometimes end up on both sides of the deal." |
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